[Protest of Navy Contract Award Alleging Materially Unbalanced Prices]

A firm protested a Navy contract award, alleging that the awardee's prices were unreasonable because they were materially unbalanced and because the hourly labor rate was unreasonably low. GAO stated that a numerically unbalanced offer may be accepted. In addition, GAO found no legal basis to object to the award on the basis of a below-cost offer. Whether a bidder will be able to meet contract requirements is a matter of responsibility, and GAO will not review a challenge to an affirmative responsibility determination unless there is a showing of fraud, bad faith, or that specific solicitation criterion were not met. Accordingly, the protest was dismissed.