[Protest of GSA Cancellation and Resolicitation of Contract for Architectural and Engineering Services]

A firm protested the cancellation and resolicitation of a project by the General Services Administration (GSA). The project encompassed architectural and engineering (A-E) services and, in accordance with procedures prescribed in the Brooks Act, GSA published notice of the project in the Commerce Business Daily and indicated that the procurement was a total small business set-aside. GSA began negotiations with the protester, the second ranked offerer, after the first ranked firm was disqualified. During the negotiations numerous changes were made in the scope of work, and negotiations were suspended. Subsequent to the changes, GSA did not approve the proposed award to the protester, recommending instead that the procurement be cancelled and resolicited based on the determination that there were significant changes in the scope of work and that the small business size standard used in the original procurement had restricted competition. The protester contended that GSA was aware of the size standard issue during negotiations and that any review of that issue should have taken place before the protester expended funds to consummate its contract. The protester further contended that the costs estimated for the changes to the scope of work have been unnecessarily inflated. GAO found that the increase in costs for the changes was significant and, because the changes were made after negotiations had been initiated with the protester, the other most highly qualified A-E firms were not afforded an opportunity to be evaluated on the basis of the changed requirements. Further, the use of an erroneous size standard is a factor which properly may be considered by a contracting officer in deciding whether to cancel a solicitation. Therefore, in view of the changes in the scope of the work and the use of an incorrect size standard in the initial solicitation, GSA had a reasonable basis for the cancellation and resolicitation. Accordingly, the protest was denied.