Protest Against Decision Not To Renew Option

A firm protested an agency's decision not to exercise its option to extend the firm's contract an additional year. The contract for security services contained a base term of 1 year plus an option for an additional year. The protester alleged that at the time the agency solicited bids, it had no intention of exercising the option, because it intended to consolidate all services in one prime contract. Where an option is exercisable at the discretion of the Government, the decision to exercise the option or to issue a new solicitation is a matter of contract administration and is not a matter for consideration under bid protest procedures. GAO assumed that the option was exercisable at the sole discretion of the Government, because the protester did not allege otherwise and procurement regulations generally contemplate such an option. Accordingly, the protest was dismissed.