Protest Against RFQ Cancellation

A firm protested the Federal Bureau of Investigation's (FBI) cancellation of a request for quotations (RFQ). On the due date for the price quotations, the FBI discovered that a Federal Supply Schedule (FSS) contract covering the equipment in the RFQ had been awarded by the General Services Administration to the protester. The FBI was also notified that it was a mandatory user of the FSS contract providing the equipment covered by the contract fulfilled its needs. In the meantime, a purchase order for the equipment had been prepared for the low offeror, another company. Following the FBI confirmation of the protester's FSS contract, the purchase order was canceled and, subsequently, so was the RFQ. The protester contended that, although quotations from offerors which did not hold a FSS contract had to be rejected, award could have been made to an offeror meeting the RFQ requirements who had an FSS contract. In the protester's opinion, the cancellation of the procurement was for the purpose of waiting until one or more of the nonresponsive offerors could become a responsive offeror when awarded an FSS contract. The FBI stated that no determination of the responsiveness of the offerors was ever made. Rather, cancellation of the procurement was based solely on the discovery of the existence of the mandatory FSS contract. The FBI pointed out that, had it known that an FSS contract was in existence, the RFQ would not have been issued, but that a purchase order would have been executed against the contract. GAO has held that contracting officials have broad discretion to determine whether a solicitation should be canceled and that it will not interfere with such a determination unless it is shown to be unreasonable. The protester also contended that the existence of an FSS contract affected only the responsiveness of the offers submitted under the RFQ. GAO stated that it is fundamental that the concept of responsiveness does not apply to negotiated procurements. Accordingly, the protest was denied.