[Protest of Contract Awards to High Bidders in Forest Service Sales]

A firm protested the award of contracts to the high bidders in timber and salvage sales conducted by the Forest Service. The protester contended that: (1) the high bidders were speculating on the immediate contracts and had a competitive advantage because they defaulted on other timber sales contracts but were not billed the costs of default; and (2) it could not submit high bids because it performed contracts without default at a substantial economic loss. GAO found that: (1) an alleged failure to collect the costs of default from a bidder is a matter of contract administration and not for review by GAO; and (2) default on a prior sale does not automatically render a firm ineligible for award, and participation in a procurement by a defaulted firm does not create an improper competitive advantage. Accordingly, the protest was dismissed.