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B-296628.4 1 (2006-02-27)

handle is hein.gao/gaocrptaslk0001 and id is 1 raw text is: A G A O Comptroller General . Accountability * Integrity * Reliability of the United States United States Government Accountability Office Washington, DC 20548 Decision Matter of: Ystueta Inc. File: B-296628.4 Date: February 27, 2006 R. Brent Blackburn, Esq., and Edward J. Kinberg, Esq., Kinberg & Associates, LLC, for the protester. Samar A. Shams, Esq., Department of Agriculture, for the agency. Susan K. McAuliffe, Esq., and Christine S. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST In a negotiated procurement, agency need only establish a reasonable basis for the cancellation of a solicitation; lack of funding for the procurement clearly provides a reasonable basis for cancellation as agency cannot award contract which exceeds available funds. DECISION Ystueta, Inc. protests the withdrawal of the small business set-aside restriction under, and the subsequent cancellation of, request for proposals (RFP) No. 04-3K15-05, issued by the Department of Agriculture for construction services for the renovation of the James Whitten Delta States Research Center in Stoneville, Mississippi. Ystueta contends principally that the agency's actions were undertaken to avoid having to award a contract under the RFP to the protester.' 1 In its initial protest, Ystueta challenged the agency's rejection of its proposal for failure to submit an adequate bid guarantee; that protest was dismissed after the agency advised that it was taking corrective action, including conducting discussions and evaluating final revised proposals. Ystueta's second protest challenged solicitation terms concerning the bid guarantee to be submitted with the revised proposals; that protest was dismissed for lack of standing after the agency reported the firm was not in line for award. In its third protest, Ystueta, reasserting its solicitation challenge, argued that the offeror next in line for award had been found to be other than a small business; Ystueta argued that the agency should accept its bid guarantee and make an award to the firm as the sole remaining offeror. That (continued...)

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