Protest of VA Decision to Reopen Negotiations After Awarding Contract for Bulk Laxatives

A firm protested the Department of Veterans Affairs' (VA) decision to reopen negotiations after awarding the firm a contract for bulk laxatives, contending that: (1) VA's decision to reopen discussions after prices had been exposed was improper; and (2) VA did not fail to consider all of the solicitation's evaluation factors in connection with the initial contract award decision. GAO held that: (1) VA's failure to follow the original evaluation scheme was not dispositive of the protest; (2) the solicitation was defective, but the defect did not warrant terminating the award and reopening the competition after prices were exposed, since reopening the competition would simply promote an auction among the bidders; (3) there was no evidence that any bidder was prejudiced by the initial evaluation; and (4) award under the original solicitation would meet VA's needs. Accordingly, the protest was sustained, and GAO recommended that VA: (1) reinstate the award to the protester if otherwise appropriate; and (2) reimburse the protester for its legal costs.