[Request for Reconsideration]

A firm requested reconsideration of a decision in which GAO dismissed its protest under a Veterans Administration (VA) solicitation for a hospital remodeling project. GAO had found that the protest was not for consideration on the merits because: (1) its allegation that the low bidder had submitted a below-cost bid on some items did not constitute a legal basis for precluding award; and (2) an allegation that the low bid was in error was unsubstantiated. In its request for reconsideration, the protester claimed that VA should make award to the low bidder for one deductive item, on which its bid was extremely low, and resolicit for the work deducted under that item. GAO agreed that the proposed awardee's bid under two items was mistaken; however, a bid must be evaluated only on the basis of work actually awarded. This error did not prevent VA from determining the lowest overall cost under another item. GAO has held that, where there is no prejudice to the Government's interests, nor any unfair advantage to other bidders, a bid may be accepted if award is made on a basic item. GAO stated that no useful purpose would be served by holding a conference or requesting an agency report on this matter. Accordingly, GAO found the request for reconsideration to be without merit.