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[Request for Reconsideration of Decision Concerning Army Contract Award]

B-218656.2 Published: Jul 31, 1985. Publicly Released: Jul 31, 1985.
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Highlights

The Army requested reconsideration of a decision concerning one of its contract awards. In that decision, GAO held that: (1) the Army properly permitted the firm to correct a mistake in its bid; (2) the bid was grossly unbalanced mathematically and should have been rejected; and (3) the bid should also be viewed as materially unbalanced because acceptance of the bid would be tantamount to an advance payment. The Army argued that: (1) the determination that the bid was mathematically unbalanced would violate the statutory prohibition on advance payments; (2) the decision would have a detrimental effect on solicitations with multiple bid items; and (3) the facts of that case did not justify changing a longstanding GAO general rule for determining if a bid is materially unbalanced. GAO confirmed that: (1) a bid that is grossly unbalanced should also be viewed as materially unbalanced; (2) technically, GAO could not and did not conclude that acceptance of that bid involved the government in a prohibited advance payment situation; and (3) the decision was not expected to affect the vast majority of multiple line item solicitations as it would only apply where the bidding scheme is grossly unbalanced mathematically. Accordingly, the prior decision was affirmed.

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Advance paymentsArmy procurementBid evaluationBid protest reconsiderationsQuestionable procurement chargesU.S. ArmySolicitations