In the protest of Arch System, LLC, B-417567.2 (July 2, 2019), the protester challenged the Government’s decision not to exercise an option on the protester’s contract. The Department of Health and Human Services issued a task order to the protester for software testing with a base year period and four, 1-year option periods. The Government notified the contractor that it did not intend to exercise the first option. Instead, the Government planned on awarding a sole source bridge contract pending award of a new follow-on competitive procurement for software testing services.
The protester argued that the Government’s decision not to exercise its contract option, and to issue a sole-source, short-term task order for the requirement was unlawful, arbitrary, capricious, and unreasonable.
The GAO noted that its jurisdiction is limited to challenges to the award or proposed award of contracts. 31 U.S.C. § 3552. The GAO therefore generally does not review matters of contract administration, which are within the discretion of the contracting agency and for review by a cognizant board of contract appeals or court. The GAO therefore held that it does not not have jurisdiction over the protest.
This case is consistent with the long line of GAO cases that dismiss protests challenging the Government’s decision not to exercise an option under an existing contract.
