Davenergy-VCI JV, LLC (B-423332)

You should not care.

Category: RFQ cancelation, funding

Date: 29 April 2025

URL: https://www.gao.gov/products/b-423332

Davenergy-VCI JV, LLC, protested the Army Corps of Engineers’ cancellation of a solicitation for an A/E construction management IDIQ contract supporting VA facility builds in Oregon and Washington. The protester argued the cancellation was unreasonable, citing recent selection as the most highly qualified firm and claiming the agency was improperly motivated or lacked justification. GAO found the cancellation reasonable.

Changed requirements and no funding supported cancellation: The agency canceled the requirement after VA withdrew funding and canceled the initial Portland Phase 2 project. The next relevant task order, White City Package 1, would not start before May 2026. GAO affirmed that an agency has broad discretion to cancel solicitations under FAR Part 36.6 when its needs change or funding disappears.

Incorrect citation not fatal: Although the agency mistakenly cited FAR 15.206(e) when canceling the solicitation, GAO emphasized that the legal authority for cancellation need only rest on a reasonable basis, which existed here due to eliminated work and the absence of current funds.

The protest was denied. Even after vendor selection, indefinite-delivery contract solicitations may be canceled when underlying project scopes change or lapse. Agencies are not obligated to proceed merely to preserve sunk costs in source selection, nor must they retain procurements lacking present fiscal support.

Digest

Protest challenging an agency’s cancellation of a solicitation for architectural engineering construction management services for multiple projects is denied where the agency determined that the most immediate project had been eliminated from the requirement, the next scheduled project would not commence until at least a year later, and funding was not available to make an award.