January 26 2007 Copyright 2007 Business Research Services Inc. 301-229-5561 All rights reserved.

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Incumbency Has No Privileges

An incumbent contractor has no right to compete for a follow-on contract under GSA schedules, the Government Accountability Office has ruled.

GAO said the buying agency can satisfy competition requirements by soliciting quotations from at least three contractors and is not required to solicit the incumbent.

The ruling arose from a protest by Allmond & Co., which had been providing accounting support for the Drug Enforcement Administration under a blanket purchase agreement since 2001.

When DEA issued an RFQ for a new blanket purchase agreement in September, it solicited quotations from five GSA schedule contractors, not including Allmond. After receiving two bids, the agency awarded the BPA to Bradson Corp.

In denying Allmond’s protest, GAO said, “The applicable statute and regulations simply do not require an agency to solicit the incumbent (Federal Supply Schedule) contractor.”

The case is Matter of: Allmond & Company, File: B-298946.


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