GAO cannot hear a protest challenging a task order unless the value of the order exceeds $25 million. Here the awardee’s proposed price was slightly below $25 million while its evaluated price was slightly above. The protester argued evaluated price of a task order determines value. GAO said the proposed price determines value, so it lacked jurisdiction.
ELS, Inc., GAO B-421989, B-421989.2
- FASA Limit – Under the Federal Acquisition Streamlining Act, GAO only has jurisdiction to hear protests challenging a task order if the value of the task order exceeds $25 million.
- Protester’s Argument – The protester challenged the award of a task award. The awardee’s proposed price was $24.8 million, but the awardee’s total evaluated price was $25.1 million. The protester argued GAO had jurisdiction to hear the protest. While the awardee’s proposed price was below $25 million, the protester reasoned the value of a task order cannot be determined solely on the proposed price; rather it must be based on the total amount of funds the government planned to spend—i.e., the evaluated price.
- GAO Declines Jurisdiction – GAO rejected the protester’s argument. GAO noted the determining factor in assessing contract value is the amount of the contract award—that is, the contractor’s proposed price. While the protester cited decisions where GAO had looked beyond the value of the contract, GAO distinguished those cases, noting they involved either unconventional methods of compensation or an unusual price evaluation technique that didn’t apply in this case.
The protester is represented by Elizabeth N. Jochum, Stephanie M. Harden, Carolyn Cody-Jones, and Shane M. Hannon of the Blank Rome LLP. The awardee is represented by Lee Dougherty of Effective PLLC. The agency is represented by Nicole M. Trask of the Navy. GAO attorneys Kenneth Kilgour and Jennifer D. Westfall-McGrail participated in the decision.
–Case summary by Craig LaChance, Senior Editor —
