Propriety of Procedures Used for the Procurement of Architectural and Engineering Services

A firm complained that a federal grantee failed to comply with applicable federal statutes and regulations for obtaining architectural and engineering (A/E) services. The protester alleged that regulations prescribe that the selection of A/E professional services by competitive negotiation shall be by the two step method as provided for in legislation. This method restricts the evaluation data that may be requested initially to the proposer's qualifications and requires that price negotiation be conducted with the highest ranked firm. The protester maintained that when selecting A/E services by competitive negotiation the two step method prescribed by legislation must be used. GAO rejected this argument because the language of the grantor-agency's regulations does not mandate the use of that procedure, but only allows it. GAO concluded that the grantee was not required to employ the type of procurement procedures in question, which was consistent with the state law governing the grantee. The state provision requires the use of competitive bidding except when A/E services are being procured. While the statute does not prohibit the use of a process in which price competition is obtained, the state or local contracting authority has the discretion to determine what type of procurement it desires to conduct. Because the grantee acted consistent with state law and federal regulations, the complaint was denied.