Protest of GSA Issuance of Delegation of Procurement Authority

A firm protested an interim acquisition of a computer system by the Energy Information Administration (EIA). The General Services Administration (GSA) issued a delegation of procurement authority (DPA) to EIA for the sole-source acquisition of the computer. GSA received a letter from a third-party vendor of IBM computers objecting to the sole-source acquisition from EIA. GSA subsequently issued a DPA amendment by letter calling for solicitations for financial alternatives to the sole-source acquisition. The solicitation contemplated a performance period of 48 months and provided for consideration of a purchase option. The protesting firm objected to the solicitation on the basis that a 48-month lease was improper and violated the DPA terms. The issues involved included whether: (1) the protester could be considered an interested party; (2) the letter issued by GSA actually caused DPA modifications; (3) there was a basis for the extension; and (4) the extension violated provisions of the Federal Property Management Regulations. GAO held that the protester was an interested party in respect to the extension since the extension could eliminate future procurements for replacement systems. The interpretation of the letter by GSA and the contracting agency granting an extension was found to be reasonable, and GAO confirmed the fact that the letter modified the DPA. GSA is not precluded from reconsidering and modifying the DPA, even without a change in circumstances. GAO could not conclude that concern for possible delays in procurement was not a reasonable basis for an extension of DPA for an interim upgrade of computer equipment. Accordingly, the protest was denied.