[Protest of VA Rejection of Low Bid for Oxygen Supplies]

A firm protested the Veterans Administration's (VA) rejection of its bid as nonresponsive and contract award to another firm for oxygen supplies, contending that VA should have allowed it to modify its bid to reflect the VA interpretation of a pricing provision. GAO found that the solicitation was defective because it: (1) did not provide for the most favorable cost to the government; (2) provided no estimate of the amount of oxygen to be used; and (3) solicited prices for two product sizes where, in each case, the estimated quantity was stated as zero. Accordingly, the protest was sustained. GAO recommended that VA: (1) prepare a revised solicitation that accurately provided a basis for evaluation based on its needs and ensured the lowest cost to the government; (2) terminate the current contract if feasible, so it could resolicit and award a new contract; and (3) reimburse the protester for the costs of filing and pursuing its protest.