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GAO Defers to Agency on Impact of Sequestration

December 6, 2013

In Vinculum Solutions, Inc.—Reconsideration (Dec. 3, 2013), GAO reconfirmed its conclusion in the first published decision on the issue (previously discussed here) that an agency's need to reduce costs due to sequestration may be a valid basis for canceling a solicitation. Of particular relevance for future protests, GAO rejected the argument that GAO should have sought the specific budget and funding data that supported the agency's cancellation decision, noting that, in the protest context, GAO "generally does not question" an agency's representations regarding its budget and funding choices.

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