[Protest of Navy Decision To Award Contract Without Discussions]

A firm protested a Navy decision not to conduct discussions with it following its late price modification to its timely bid, contending that the Navy should not have proceeded with award on the basis of initial proposals, since it could have conducted discussions and asked for best and final offers. GAO held that the Navy properly awarded the contract since: (1) it had advised the offerers of the possibility that it would not hold discussions or request best and final offers; (2) it obtained adequate competition; and (3) under federal regulations, it could not accept a late bid modification. Accordingly, the protest was denied.