B-220839, NOV 1, 1985, 85-2 CPD 508
Highlights
CONTRACTS - NEGOTIATION - "BUYING IN" - NOT PROPER BASIS TO PREVENT AWARD DIGEST: PROTEST ALLEGING THAT AWARDEE SUBMITTED BELOW-COST OFFER IS DISMISSED. THERE IS NO LEGAL BASIS TO OBJECT TO A CONTRACT AWARD SOLELY BECAUSE THE AWARDEE SUBMITTED A BELOW-COST OR "BUY-IN" OFFER. THERE IS NO LEGAL BASIS TO OBJECT TO A CONTRACT AWARD SOLELY BECAUSE THE AWARDEE SUBMITTED A BELOW-COST. THE REGULATIONS REQUIRE ONLY THAT THE CONTRACTING OFFICER TAKE APPROPRIATE ACTION TO ENSURE THAT LOSSES DUE TO BELOW-COST AWARDS ARE NOT RECOVERED. THE PROTEST IS DISMISSED.
B-220839, NOV 1, 1985, 85-2 CPD 508
CONTRACTS - NEGOTIATION - "BUYING IN" - NOT PROPER BASIS TO PREVENT AWARD DIGEST: PROTEST ALLEGING THAT AWARDEE SUBMITTED BELOW-COST OFFER IS DISMISSED. THERE IS NO LEGAL BASIS TO OBJECT TO A CONTRACT AWARD SOLELY BECAUSE THE AWARDEE SUBMITTED A BELOW-COST OR "BUY-IN" OFFER.
JAMATS, INCORPORATED:
JAMATS, INCORPORATED PROTESTS THE AWARD OF A CONTRACT TO INTERCON SYSTEM CORPORATION FOR ADVANCED TRAINING MATERIAL FOR THE AN/TSQ-73 MISSILE MINDER SYSTEM UNDER REQUEST FOR PROPOSALS NO. DABT60-85-R-0166, ISSUED BY THE ARMY. JAMATS CONTENDS THAT INTERCON SUBMITTED A BELOW COST OFFER IN AN ATTEMPT TO "BUY-IN" WITH THE INTENTION OF LATER GAINING A COST ADJUSTMENT UNDER THE CONTRACT.
THERE IS NO LEGAL BASIS TO OBJECT TO A CONTRACT AWARD SOLELY BECAUSE THE AWARDEE SUBMITTED A BELOW-COST, OR BUY-IN, OFFER. ARES, INC., B-0209323, MAR. 31, 1983, 83-1 CPD PARA. 336. THE REGULATIONS REQUIRE ONLY THAT THE CONTRACTING OFFICER TAKE APPROPRIATE ACTION TO ENSURE THAT LOSSES DUE TO BELOW-COST AWARDS ARE NOT RECOVERED. FEDERAL ACQUISITION REGULATION, 48 C.F.R. SEC. 3.501-2(A) (1984); ARES, INC., B-209323, SUPRA.
THE PROTEST IS DISMISSED.