Protest Involving Procurement on a Cost-Plus-Fixed Fee Basis

A firm protested the rejection of its proposal for the procurement on a cost-plus-fixed fee basis issued by the Navy. The firm contended that the Navy failed to conduct meaningful negotiations and that the Navy improperly evaluated its proposal. The Navy pointed out several deficiencies in the protester's proposal and offered it the opportunity to resubmit. The firm's revised proposal was also rejected by the Navy as being technically deficient. GAO held that it was not unreasonable for the Navy to inform the firm of its proposal deficiencies in writing rather through oral negotiations. Also, the rejection of the revised proposal was not held to be improper. Determinations of the technical acceptability of a proposal were held to be matters for the contracting agency. Therefore, the protest was denied.