[Request for Reconsideration of Sustained Protest Concerning HHS Procurement]

A firm requested reconsideration of a decision which sustained a protest under a Department of Health and Human Services (HHS) request for proposals for microfilming services. In its decision, GAO concluded that the protester's sample product had been improperly evaluated and recommended that HHS not exercise its option to renew a contract with the requester. The requester contended that the government should exercise the contract renewal option because it was not responsible for the government's evaluation error, and it will be unable to recover its equipment and start-up costs otherwise. GAO found that neither argument provided a proper basis for option exercise. Procurement errors must be remedied, and nonexercise of a contract renewal option is an appropriate means of accomplishing this purpose. In addition, the requester asserted that requiring a recompetition is unfair because HHS released its proposal to the competitor, thereby placing the requester at a disadvantage in recompetition. However, GAO has held that the importance of correcting a procurement deficiency outweighs any competitive advantage that might be gained from the release of a proposal. Finally, the firm argued that GAO improperly assumed that the protester would have received the full points available for its sample had it been properly evaluated. GAO found no error in its decision. Accordingly, the prior decision was affirmed.