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B-181956 1 (1975-02-13)

handle is hein.gao/gaobadcfd0001 and id is 1 raw text is: THE COMPTROLLER GENERAL DECISIDN OF THE UNITED STATES WASHINGTON, D. C. 20548 FILE: B-181956 DATE:February 13,1975 MATTER OF: Comdisco, Inc. DIGEST: Refusal of General Services Administration (GSA) to award Automatic Data Processing (ADP) Schedule contract to third party supplier of ADP equipment is not improper, since GSA has determined, pursuant to its broad authority to estab- lish policies and methods of procurements and to procure ADP equipment for executive agencies, that it is not in Gov- ernment's best interests to award Schedule contracts to third party suppliers, and since protester offered to furnish only used equipment where solicitation required unused equipment. Comdisco, Inc. has protested the refusal of the Automated Data and Telecommunication Service, General Services Administration (GSA), to award it an Automatic Data Processing (ADP) Schedule contract for general purpose ADP equipment. and software. It has further protested the award of the Schedule contract to International Business Machines Corporation (IBM). Solicitation No. CDPS-003-N-3-9-74, calling for offers for the rental, purchase, maintenance and repair of ADP equipment, was issued on February 9, 1974. By letter of June 28, 1974, GSA notified Comdisco that it did not believe that it would be proper or in the best interest of the Government to negotiate a schedule contract with COMDISCO or with any other third party supplier of equipment. Comdisco then protested to this Office. While the protest was pending, nego- tiations were conducted with IBM, which culminated in the award of a Schedule contract to IBM on October 18, 1974. Comdisco formally pro- tested any award to IBM on the same date. Comdisco claims that it offered to furnish ADP equipment at prices substantially lower than IBM's current Schedule prices, and that GSA's failure to negotiate a contract with it was improper and not in the best interests of the Government. On the other hand, GSA contends that under its current ADP procurement policies, which are designed to maxi- mize competition in this area, there is no reason to award third party suppliers such as Comdisco an ADP Schedule contract and that it is in the Government's best interest to award such a contract only to an original equipment manufacturer (OEM) such as IBM. - 1 -

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