Claim for Proposal Preparation Costs

A firm claimed entitlement to proposal preparation costs for its bid entered in a General Services Administration (GSA) solicitation for fire-resistant shirts. The claimant was the low bidder in the procurement and was offered a contract to supply the shirts at the price specified in its proposal. The claimant refused to sign the contract on the ground that its offer was based on an erroneously low fabric estimate supplied orally by the contracting officer. Unsuccessful negotiations followed, after which GSA allowed the request for proposals to lapse because the primary agency for which the shirts were intended changed its specifications. The basis of the claim was the allegation that the contracting officer, after furnishing the claimant with erroneous information, should have accepted the price adjustment as reasonable. The claimant cited as evidence of the fairness of its adjustment the fact that, in a later procurement, GSA paid significantly more than the claimant's adjusted price for similar shirts in a larger quantity. The instructions supplied with solicitations of this nature specifically state that oral explanations given before award of the contract will not be binding. Although it was noted that there were certain irregularities in the handling of the procurement, particularly with regard to carrying on a negotiation with only one bidder, no arbitrary or capricious action was discovered that would give the claimant a right to be compensated for proposal preparation costs. Accordingly, the claim was denied.