Protest Against RFP Cancellation

A firm protested the cancellation of a request for proposals (RFP) by the Federal Communications Commission (FCC) for computer hardware and accompanying software to replace the existing system. The protester maintained that GAO should sustain the protest because the agency stated to GAO that it did not cancel the RFP because of budgetary limitations, the reason given to the protester. Rather, after an evaluation of the protester's technical proposal and costs, FCC decided that it could obtain the needed equipment at the lowest overall cost to the Government by upgrading its existing equipment through the General Services Administration (GSA) automatic data processing (ADP) schedule contractor. Moreover, the protester raised three substantive issues as to: (1) whether FCC properly solicited competitive proposals; (2) whether FCC could properly cancel the RFP instead of requesting a best and final offer from the protester; and (3) whether the protester's lease price, as proposed during negotiations, was less than the incumbent supplier to GSA. GAO held that the agency's decision to cancel the RFP and continue leasing ADP equipment from a GSA schedule contractor did not represent abuse of the competitive procurement system. Further, Federal procurement regulations require an agency to seek competition prior to making an award under a schedule contract. Additionally, where an agency provided an offeror with the opportunity to revise the proposal price, but concluded that the incumbent's schedule contract price represented the lowest overall cost for the computer system's life, the agency could reasonably cancel the RFP rather than request a best and final offer. Accordingly, the protest was denied.