Propriety of Subtracting the Prompt Payment Discount Offered by Competitor's Bid as a Basis of Award

A contractor protested an award to a competitor under a solicitation for reporting services. The protester contended that it was low bidder on the basis of bid prices submitted, and that the agency erred in reducing the amount of their competitor's bid price below that of the protester by subtracting the prompt payment discount offered by the competitor. The protester also contended that the solicitation prohibited consideration of a prompt payment discount in determining the lowest bid, and that if the discount provision did require such consideration, it should not have been applied in the face of the Government's allegedly tardy payment history. The solicitation prohibited the consideration of prompt payment discounts for time periods of less than 20 days. Because the competitor offered a 20 percent discount for a 20-day time period, the agency was required by the solicitation to consider the discount in the evaluation of its bid. As to the alleged impropriety of the discount provision in the light of the asserted tardy prior payment record of the Government, the allegation was untimely, having been filed after bid opening. The competitor's bid was lower than the protester's bid when the prompt payment discount was considered, making the contract award proper. Therefore, the protest was denied.