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GAO: task orders are immune from protest.

The Government Accountability Office has ruled that protests are not allowed over modifications to task orders under IDIQ contracts.

The Federal Acquisition Streamlining Act prohibits protests over the issuance of a task or delivery order, but does not mention modifications. A small business, Global Computer Enterprises Inc., lost a chance at a Coast Guard IT services contract when the agency decided to include those services on a modification of an existing task order. Global Computer argued that the task order modification constituted an illegally bundled contract, so its protest should be permitted.

"We find this position to be inconsistent with both the language of FASA and the underlying congressional intent," GAO said in dismissing the protest. "Moreover, we see no logic in holding that an agency's decision to modify an existing task order could be subject to protest when it is clear that an agency's decision to perform the very same action by means of a new task order would not be subject to protest."

GAO said Congress passed FASA as part of an effort to streamline and simplify federal procurement activities, and one of the act's purposes was to restrict bid protests.

The case is Matter of: Global Computer Enterprises, Inc., File numbers B310823; B-310823.2; B-310823.4.
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Publication:Set-Aside Alert
Date:Feb 22, 2008
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