United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao_comptroller_general legislative 2016-06-23 U.S. Government Publishing Office 1998-06-29 monographic deposited born digital 13 p. GA 1.13:B-275587.9 https://www.govinfo.gov/app/details/GAOREPORTS-B-275587-9 P0b002ee18fd498a7 f:2755879 DGPO 2016-06-23 2016-06-23 GAOREPORTS-B-275587-9 machine generated eng fdlp COMPTROLLERDECISION GAOREPORTS-B-275587-9 B-275587.9 Comptroller General Decision

1. The Competition in Contracting Act of 1984 (CICA) provides that the General Accounting Office (GAO) has protest jurisdiction to review objections to cancellations of solicitations and that GAO shall decide protests "concerning an alleged violation of a procurement statute or regulation." Since 10 U.S.C. sec. 2462 (1994) mandates that the Department of Defense (DOD) procure goods or services under specified circumstances, rather than supply them from an in-house source, it is a procurement statute. Under the circumstances, where a DOD agency issues a solicitation, receives and evaluates bids or proposals, and awards a contract, and then cancels the solicitation to take the work in-house, CICA grants GAO the authority to consider a protest that the agency did not comply with 10 U.S.C. sec. 2462. <p/>2. In a negotiated procurement, the contracting officer is required to have a reasonable basis to cancel a solicitation. There could be no reasonable basis for cancelling a solicitation in order to bring work in-house if doing so violates 10 U.S.C. sec. 2462, which is a congressional mandate to allow private companies to provide goods and services to DOD unless the government can provide those goods and services at a lower cost. Thus, although DOD agencies historically have had broad discretion to manage resources and make decisions as to whether to contract out or perform work in-house, when 10 U.S.C. sec. 2462 applies, those decisions are required to be based on a determination of which source can provide a supply or service at the lower cost. <p/>3. Although 10 U.S.C. sec. 2462 generally requires that decisions of DOD agencies as to whether to perform work in-house or to contract out are to be based upon a determination of which source can perform the work at the lower cost, section 2462 is subject to the proviso: "Except as otherwise provided by law." Where a DOD agency reasonably relies on the need to meet the requirements of 10 U.S.C.A. sec. 2466(a) (West Supp. 1998)--which limits the funds which DOD agencies can use to contract out for depot-level maintenance and repair work--as a basis for cancelling a solicitation, this statutory direction means that the requirements of section 2462 do not apply. https://www.govinfo.gov/content/pkg/GAOREPORTS-B-275587-9/html/GAOREPORTS-B-275587-9.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-B-275587-9/pdf/GAOREPORTS-B-275587-9.pdf GAO/B-275587.9 https://www.govinfo.gov/app/details/GAOREPORTS-B-275587-9 Comptroller General Decision GAO/B-275587.9; Pemco Aeroplex, Inc., Aero Corporation, B-275587.9; B-; Title 10 Section 2304 Title 10 Section 2462 10 U.S.C. 2304 10 U.S.C. 2462 Title 31 Section 3551(1) Title 31 Section 3554(c)(1) 31 U.S.C. 3551(1) 31 U.S.C. 3554(c)(1) Volume 100 Page 3816 100 Stat. 3816 Public Law 99-661