[Protest of MARAD Solicitation for Custodial Services]

A firm protested a Maritime Administration (MARAD) solicitation for custodial services, contending that the solicitation did not: (1) comply with the Federal Acquisition Regulation (FAR); or (2) adequately describe the evaluation criteria or MARAD requirements. The protester also contended that MARAD should cancel the solicitation and resolicit, since its failure to advertise the procurement in the Commerce Business Daily precluded the protester from competition. MARAD contended that GAO lacked jurisdiction, since it would not use appropriated funds to obtain the services. GAO held that: (1) its jurisdiction to consider the protest did not depend on the use of appropriated funds; (2) MARAD was exempt from FAR compliance, since it conducted the procurement under the Merchant Marine Act; and (3) the protester did not show that the agency's procedures were arbitrary or unreasonable. Accordingly, the protest was denied in part and dismissed in part.