Protest challenging the termination of awardee’s contract after another disappointed bidder protested is dismissed. GAO does not hear matters of contract administration. Here, the termination was an agency business decision that presented a question of administration that GAO will not review.
The Coast Guard awarded Lyon Shipyard a contract to perform dry dock repairs on the USCGC Dependable. A losing bidder protested the award to Lyon. Instead of defending against the protest, the Coast Guard decided to terminate Lyon’s contract. Lyon then filed a protest, alleging that the termination was pretext to avoid defending the protest on the merits.
GAO reasoned that it does not hear matters of contract administration, and a termination is generally a matter of administration. GAO will hear a protest of a termination when the termination arises from a defect or impropriety in award.
Here, the termination did not arise from a defect in the award. Instead the Coast Guard terminated the contract because of the stay that resulted from the protest of Lyon’s award. The stay created a material disruption of the timing of scheduled maintenance repairs. Rather than wait for resolution of the protest, the Coast Guard decided that it would reschedule the repairs for later. This was a business decision—a matter of contract administration—that GAO will not review.
Lyon is represented by Michael J. Gardner, Shomari B. Wade, and Brett A. Castellat of Greenberg Traurig. The agency is represented by Robert K. Colby of the Department of Homeland Security. GAO attorneys Michael P. Grogan and Edward Goldstein participated in the preparation of the decision.
