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B-198911.3 1 (1981-10-06)

handle is hein.gao/gaobadjua0001 and id is 1 raw text is: _11- HECOMPTROLLER GENERAL DECISION OF THE UNITED STATES WAS HI N GTC N, 0.C. 20548 FILE: B-198911.3 DATE: October 6, 1981 MATTER OF: Department of Health and Human Services - Reconsideration DIGEST: Purported options for contract renewals which contemplate negotiation of price, subject to a yet-to-be-determined price ceiling, for the acquisition of undefined equipment and/or services, to fulfill imprecisely defined needs, are little more than advance agreements to conduct negotiations on what is tantamount to a sole-source basis. Prior decision is affirmed. Provisions should be deleted from contract. The Department of Health and Human Services (HHS) has requested reconsideration of that portion of our decision in Amdahl Corporation, B-198911.2, March 27, 1981, 81-1 CPD 231, in which we sustained Amdahl's protest against certain option provisions contained in a solicitation for data processing equipment and services. HHS has awarded the contract to the Inter- national Business Machines Corporation with the option provisions intact pending our review of this request for reconsideration. We find HHS's request to be without merit. The solicitation was for the replacement and/or evolutionary upgrade of a major computer system at the National Institutes of Health (NIH) over a total 10-year contract period. The solicitation contained NIH's projections of system requirements for the first 5 of the contract years and an anticipated 10-percent annual growth rate for years 6 through 10. NIH did not project its detailed system requirements beyond the first 5 years of the contract in the belief that any such projection would be rendered obsolete by the rapid pace of technological change in the computer industry and because NIH could not accurately estimata '?

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