Protest of Defense Logistics Agency Contract Award

A firm protested the award of a Defense Logistics Agency (DLA) contract for packaged cheese spread. The thrust of the protest was that DLA improperly rejected as late a price revision to the firm's best and final offer that would have made the protester the low offeror. This was the key issue since price was the determinative award factor. The protester also alleged that the awardee would not be able to meet the contract's requirements and that the program under which the contract was awarded has a history of being biased against the firm. GAO reviewed the record and found that this type of procurement generally allows only a short period between the close of negotiations and best and final offer submission. A procurement agent notified the bidders that the solicitation existed in a competitive environment and that a letter would be sent confirming that fact. DLA asserted that this advice was given because the contracting officer was concerned that the protester, which was the sole source in the previous cheese spread purchase, might be pricing its offer on the assumption that this contract was also going to be a sole-source one. As a result of the contracting officer's letter, the protester sent a telex amending its best and final offer. DLA rejected the amendment as a late revision of the protester's otherwise timely, and unsucessful, best and final offer. The protester contended that it interpreted the letter as a request for a new best and final offer. GAO stated that there was no way that the letter could be reasonably read as soliciting a second round of best and final offers and that the contracting agency properly rejected the proposed revision as late. Concerning the protester's other allegations, GAO stated that it does not review determinations of responsibility except under certain circumstances, none of which apply here. Finally, GAO found no evidence which suggested that the firm had been discriminated against in this or any previous procurement. Accordingly, the protest was denied in part and dismissed in part.