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B-275587.9 1 (1998-06-29)

handle is hein.gao/gaocrptahlr0001 and id is 1 raw text is: Comptroller General of the United States Washington, D.C. 20548 Decision DOCUMENT FOR PUBLIC RELEASE The decision issued on the date below was subject to a I GAO Protective Order. This redacted version has been approved for public release. Matter of: Pemco Aeroplex, Inc., Aero Corporation File: B-275587.9; B-275587.10; B-275587.11; B-275587.12 Date: June 29, 1998 Kevin P. Connelly, Esq., Seyfarth, Shaw, Fairweather & Geraldson, for Pemco Aeroplex, Inc.; and Thomas G. Jeter, Esq., Suzanne L. Karbarz, Esq., and Michael T. Janik, Esq., McKenna & Cuneo, for Aero Corporation, the protesters. John E. Lariccia, Esq., Gregory H. Petkoff, Esq., and Brad Adams, Esq., Department of the Air Force, for the agency. John Van Schaik, Esq., and Michael R. Golden, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. The Competition in Contracting Act of 1984 (CICA) provides that the General Accounting Office (GAO) has protest jurisdiction to review objections to cancellations of solicitations and that GAO shall decide protests concerning an alleged violation of a procurement statute or regulation. Since 10 U.S.C. § 2462 (1994) mandates that the Department of Defense (DOD) procure goods or services under specified circumstances, rather than supply them from an in-house source, it is a procurement statute. Under the circumstances, where a DOD agency issues a solicitation, receives and evaluates bids or proposals, and awards a contract, and then cancels the solicitation to take the work in-house, CICA grants GAO the authority to consider a protest that the agency did not comply with 10 U.S.C. § 2462. 2. In a negotiated procurement, the contracting officer is required to have a reasonable basis to cancel a solicitation. There could be no reasonable basis for cancelling a solicitation in order to bring work in-house if doing so violates 10 U.S.C. § 2462, which is a congressional mandate to allow private companies to provide goods and services to DOD unless the government can provide those goods and services at a lower cost. Thus, although DOD agencies historically have had broad discretion to manage resources and make decisions as to whether to contract out or perform work in-house, when 10 U.S.C. § 2462 applies, those decisions are required to be based on a determination of which source can provide a supply or service at the lower cost.

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