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Protest of Contract Award

B-192756 Published: Mar 14, 1979. Publicly Released: Mar 14, 1979.
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Highlights

The Department of Health, Education, and Welfare (HEW) issued a request for proposals to set up 12 regional networks to support Teacher Corps projects. Acceptable proposals were received for the Mid-Atlantic Network, from the Washington School of Psychiatry/The Metropolitan Educational Council for Staff Development (Metro) and Temple University. Temple was awarded the contract. Metro protested the award, based on the following accusations against HEW: price assistance to Temple, failure to inform Metro of its deficiencies, disclosure of prior cost estimates giving Temple exclusive information, refusal to confirm changes in writing, abuse of bid procedures, unfair administration of the bid protest process, and failure to withhold all regional awards. GAO found that: meaningful discussions required negotiation with Temple, Metro had been informed of its deficiency but failed to remedy it, Metro's protest against disclosing budget estimates was untimely, and HEW had provided Metro and Temple with the same information. Also, GAO concluded that the oral transmission of information was acceptable although it should have been done in writing; reopening negotiations did not constitute an illegal "auction," but was necessary because of added requirements; and the network awards were proper and would be legal even if Metro's protest were sustained. GAO also found departmental conduct, where questionable, would not furnish a basis for upsetting the award. The protest was disallowed.

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