“The Government Accountability Office has reaffirmed an agency’s right to cancel a contract after it has been awarded, and even before the contractor has started working on it…”
“Zolon had won a blanket purchase agreement from the Labor Department last year to support the agency’s data warehousing operations and implement new software for enterprise data and information management systems…”
“But a lot happened during the re-evaluation period and particularly the passage of the American Rescue Plan Act, which put requirements on Labor to store and analyze unemployment insurance data for each state. Labor also had to build a new national data warehouse for that information and include fraud analytics….”
“All of the changes meant that the BPA awarded to Zolon no longer met the department’s needs. Instead of evaluating bids for contract it no longer needed, Labor canceled the BPA in its entirety.
Zolon filed a protest, arguing that Labor was being unreasonable because it still needs the services in the original solicitation. The company also argued that Labor provided no documentation for the decision to cancel the pact…”
“GAO said that Labor’s notice to bidders that the requirements had changed and couldn’t be met by the BPA. That’s all the department needed…” Read the full article here.
Source: Agency cancels contract with little explanation, and that’s OK – By Nick Wakeman, May 4, 2022. Washington Technology.