[Protest of GSA Purchase Order Award Under ADP Schedule Contract]

A firm protested a Department of Health and Human Services (HHS) purchase order award under a General Services Administration (GSA) automatic data processing schedule contract. The protester complained that HHS improperly awarded a purchase order which exceeded the scope of the schedule contract. GAO found that HHS selected the awardee on the basis of an internal review process and following the selection, HHS discovered that the awardee's software would require considerable modification to meet its needs, which the awardee agreed to make. However, GAO found that the award did not conform to federal procurement regulations concerning the use of ADP schedule contracts because the awarded contract differed materially from the schedule contract on which it was based. Although HHS asserted that any disruption due to the termination of the contract could delay the savings it expected to realize through the implementation of a new financial management system, GAO found no reason why HHS could not conduct a competitive procurement without compromising its delivery requirements. Therefore, GAO held that HHS should conduct a competitive procurement and terminate the contract with the awardee if a more favorable contract could be awarded. Accordingly, the protest was sustained.