[Protest of DFAS Contract Award for Accounting Services]

A firm protested a Defense Finance and Accounting Service (DFAS) contract award for accounting software and related services, contending that the awardee's proposal did not conform to material solicitation requirements regarding acceptance, warranty, and software performance. GAO held that the award was improper because the awardee's proposal was ambiguous and did not comply with material solicitation requirements. Accordingly, the protest was sustained, and GAO recommended that DFAS: (1) conduct discussions with all bidders whose proposals were in the competitive range at the time of award, request best and final offers, and proceed with the source selection process; (2) terminate the awardee's contract and make award to another bidder, if otherwise appropriate; and (3) reimburse the protester for its protest costs.