[Protests of VA Solicitations for Equipment Maintenance]

B-249917,B-250089.2,B-250098,B-250099,B-250100,B-250101,B-250170: Dec 23, 1992

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A firm protested eight Department of Veterans Affairs' (VA) solicitations for computerized tomography scanner maintenance services, contending that: (1) the solicitations were overly restrictive, since their liquidated damages clauses imposed cost-prohibitive penalties for equipment downtime; (2) VA improperly included both liquidated damages and excess procurement costs provisions in the solicitations; and (3) the solicitations' definition of equipment downtime was ambiguous. GAO held that: (1) the liquidated damages provisions did not create unreasonable liability for the contractor and had no relationship to actual costs; (2) VA properly included both liquidated damages and excess reprocurement costs provisions, since it could incur actual costs in both categories; and (3) the protester's contention that the solicitations were ambiguous regarding equipment downtime was without merit. Accordingly, the protest was denied.

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