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B-220031 1 (1985-12-20)

handle is hein.gao/gaobadmcx0001 and id is 1 raw text is: 



                          THE COMPTROLLER GENERAL
 OUCUSION      .        . OP THE UNITED STATES
                          WASHINGTON, O.C. 20548




 FILE:         B-220031         DATE: December 20, 1985

 MATTER OF:      Internal Revenue Service--Request for
                    Reconsideration

 DIGEST:


     GAO withdraws its prior recommendation that
     the contracting agency not renew the remain-
     ing 2 option years of the awarded contract
     and instead resolicit for those years, since
     the agency states that because of its antic-
     ipated future needs, it will not be exercis-
     ing the final option year of the contract.
     Further, the agency has established that a
     competition for its needs for the 1 remaining
     option year would not be in the government's
     best interest.

     The Internal Revenue Service (IRS) requests that we
withdraw our recommendation for corrective action in
Centennial Computer Products, Inc.--Reconsideration,
B-212979.2, Aug. 22, 1985, 85-2 C.P.D. 41 208. For the
reasons set forth below, we are withdrawing the
recommendation.

     Initially, we note that the IRS also has requested
reconsideration of our holding in the above decision that
the rejection of the proposal Centennial Computer Products
(Centennial) submitted in response to request for proposals
(RFP) No. IRS-83-053 could not be justified on the grounds
given by the agency. The IRS has presented us with several
new technical arguments in support of its position that
Centennial's proposal properly was rejected, and has asked
for a conference to develop and explain further the tech-
nical considerations involved in its decision to reject the
offer. In addition, Centennial has filed a claim with our
Office for reimbursement of the substantial costs allegedly
incurred in preparing its proposal. We will address the
,nerits of the IRS's reconsideration request and whether
Centennial is entitled to recover such costs in a forth-
coming decision. We are issuing the present decision at
this time because circumstances establish that, irrespec-
tive of the merits of the rejection of Centennial's pro-
posal, it no longer is practicable to implement our
recommendation for corrective action as discussed below.


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