B-245889, October 4, 1991

B-245889: Oct 4, 1991

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DIGEST: A low lump-sum bid for replacement of parts of energy management control system that contains a line item price which exceeds statutory cost limitation was properly rejected since no award can be made on basis of that bid. Item 2 for installation of the controls stated it was subject to a statutory cost limitation of $190. Bidders were to perform the work compatible with the Williams Electric Company energy management control system used by the Army. Which he acknowledges was in excess of the statutory cost limitation. The general rule with respect to statutory cost limitations is contained in the Federal Acquisition Regulation Sec. 36.205. Unless these limitations have been properly waived for the particular procurement.

B-245889, October 4, 1991

DIGEST: A low lump-sum bid for replacement of parts of energy management control system that contains a line item price which exceeds statutory cost limitation was properly rejected since no award can be made on basis of that bid.

Holbrook Service Co., Inc.:

Holbrook Service Co., Inc. protests the rejection of its bid under invitation for bids (IFB) No. DABT10-91-B-0105, issued by the Department of the Army, for air conditioning controls.

We dismiss the protest because it fails to state a valid basis of protest. 4 C.F.R. Sec. 21.3(m) (1991).

The IFB schedule listed two items. Item 2 for installation of the controls stated it was subject to a statutory cost limitation of $190,000, and that award would be made to the low bidder subject to the statutory cost limitation provision. By amendment, bidders were to perform the work compatible with the Williams Electric Company energy management control system used by the Army. The protester called Williams 20 minutes before bid opening and received a quote from Williams of $333,048. The protester, with overhead costs, bid $356,361 for item 2, which he acknowledges was in excess of the statutory cost limitation.

The general rule with respect to statutory cost limitations is contained in the Federal Acquisition Regulation Sec. 36.205, which provides that contracts for construction shall not be awarded at a cost in excess of the statutory cost limitations, unless these limitations have been properly waived for the particular procurement. Thus, in the absence of a proper XXXXX9

H. F. Holbrook for the protester.