Non performing awardee, who's next?

You can research by going to FAR 15.206 (e): Cancellation of solicitation.

bob7947 said:

You can research by going to FAR 15.206 (e): Cancellation of solicitation.

These seem to largely address the cancellation of a solicitation prior to award, but after bids/offers.

In my case, an award was made and the awardee was unable to perform.  What should happen next if we were second in line with an accepted offer?

On Edit: Also, the general statement in each of these is that the government must have a reasonable basis (deficiency of solicitation) for re-issuance of a solicitation, when in my situation there would be no reasonable basis since the RFP was actually awarded to an offeror that was unable to perform.  Therefor the solicitation is deemed good and reasonable and we are only left with who to award.

PD216ohio said:

I am hoping to find a requirement to force award...

You cannot force the Government agency to accept your unsuccessful bid.  

However, you can politely inform the contracting officer of your voluntary extension of the period for acceptance of your bid.  If the contracting officer knows that your bid is still valid, he or she may make award from the old solicitation rather than starting a new solicitation.

Was the contract to the low bidder terminated for default?

PD216ohio said:

The soliciting agency is considering reissuing the solicitation instead of moving to the only other bidder (me).  Do I have any substantial or reasonable grounds upon which to contest the reissue and request or demand that award be given to the other bidder (me)?

@ji20874 asked whether the earlier contract was terminated by default, which is an important question.  Assuming it was, the contracting officer has A LOT of discretion in deciding how to proceed.  See generally TSCO, Inc., 65 Comp. Gen. 347 (1986), B-221306, Feb. 26, 1986, 86-1 CPD ¶ 198.  I have not seen a GAO decision where the decision to issue a solicitation under facts like these was protested, much less successfully protested.  GAO decisions in this area often cite to FAR 49.402-6.  Para (b) of that subsection encourages "competition to the maximum extent practicable."

If you have access to it, I encourage you to take a look at Nash, Cibinic & O'Brien, Competitive Negotiation: The Source Selection Process (2d Ed. 1999) at 93-95.  It discusses reprocurement (or repurchase) after default termination and FAR 49.402-6.  Also, Cibinic, Nash, & Nagle, Administration of Government Contracts (4th Ed. 2006), at 1000-1002, gives you a sense of the competing interests involved where the Government intends to seek excess reprocurement costs from the defaulting original contractor.