B-310031, FitNet Purchasing Alliance, September 21, 2007

B-310031 Sep 21, 2007 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights FitNet Purchasing Alliance, a small business, protests the cancellation and reposting of a reverse auction under solicitation No. 213-0220 by the Department of Veterans Affairs (VA) for specific models of Zenith brand hospital-grade 20-inch television sets and Peerless brand mounts, to be delivered to the Bay Pines VA Healthcare System in Florida. FitNet asserts that the cancellation lacked a reasonable basis, and that when the VA subsequently reposted the same requirement, it improperly limited the competition to Federal Supply Schedule (FSS) vendors. We dismiss the protest in part and deny it in part. View Decision B-310031, FitNet Purchasing Alliance, September 21, 2007 Decision Matter of: FitNet Purchasing Alliance File: B-310031 Date: September 21, 2007 Raul Espinosa for the protester. Phillipa L. Anderson, Esq., Dennis Foley, Esq., and Philip Kauffman, Esq., Department of Veterans Affairs, for the agency. Paul N. Wengert, Esq., and Ralph O. White, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest challenging the cancellation of a reverse auction solicitation, and the decision to reissue the solicitation limited to Federal Supply Schedule vendors is dismissed in part, and denied in part, where the record shows that the protester was not in line for award of the canceled solicitation, and is therefore not an interested party to challenge the cancellation decision, and where the agency acted properly in reissuing the solicitation limited to Federal Supply Schedule vendors. DECISION FitNet Purchasing Alliance, a small business, protests the cancellation and reposting of a reverse auction under solicitation No. 213-0220 by the Department of Veterans Affairs (VA) for specific models of Zenith brand hospital-grade 20-inch television sets and Peerless brand mounts, to be delivered to the Bay Pines VA Healthcare System in Florida. FitNet asserts that the cancellation lacked a reasonable basis, and that when the VA subsequently reposted the same requirement, it improperly limited the competition to Federal Supply Schedule (FSS) vendors. We dismiss the protest in part and deny it in part. On August 2, 2007, a VA purchasing agent used the FedBid website to commence an electronic reverse auction for 170 televisions and mounts, at a target price of $97,495. This first version of the reverse auction posting was designated by FedBid as –Buy No. 44299_01.—[1] The posting listed a closing time of –10:00 EST— on August 7. The purchasing agent explains that he had intended to restrict participation in the reverse auction to FSS vendors. Purchasing Agent's Statement at 1. Nevertheless, the posting did not reflect that intent; instead the posting stated, in relevant part, as follows: GSA Schedule Bids Preferred, But Not Required: Sellers may either provide a GSA Schedule or an Open Market bid. If bidding with a GSA Schedule, the requested items must be on that Schedule. The Schedule must either be in the Seller's name or the Seller must be able to document its ability to act as an agent of a partner's Schedule. Sellers may offer Open Market items only in accordance with the approved Terms and Conditions of their respective GSA Schedule AND upon approval from the soliciting Contracting Officer. Request for Dismissal, exh. 1, at 1. FitNet participated by submitting a total price of $113,551.50, which it described as an –open market— price.[2] Id.When the reverse auction closed, the record reflects that at least one other competitor had submitted a lower price than FitNet. On August 10, the purchasing agent began to review the prices received, starting with the leading –bid— (that is, the lowest-priced quotation), and found that neither it, nor the second-lowest-priced quotation, had been submitted by a vendor under an FSS contract. The purchasing agent states that he then reread the posting, in an effort to confirm that the solicitation had been limited to FSS vendors only, but discovered that he had apparently –inadvertently checked the wrong box— when preparing the posting. Purchasing Agent's Statement at 1. On August 12, the purchasing agent canceled the reverse auction by reposting the requirement with some changes, which FedBid designated as reverse auction –Buy No. 44299_02.— Id.In this second version of the posting, the narrative stated that participation in the reverse auction would be limited to FSS vendors only, and that the solicitation would close on August 17 at –14:00 EST.— Request for Dismissal, exh. 4, at 1. On August 14, FitNet inquired why the requirement had been canceled and then reposted. On August 15, FedBid responded that the agency would only allow participation by FSS vendors.