[Protest of AID Contract Award for Health Products and Services]

A firm protested an Agency for International Development (AID) contract award for health products and services, contending that, in response to GAO's previously sustained decision, AID improperly reevaluated the awardee's cost proposal and failed to conduct meaningful discussions. GAO held that AID: (1) acted unreasonably in confirming the award without conducting discussions; and (2) failed to consider certain indirect costs in the awardee's proposal . Accordingly, the protest was sustained, and GAO recommended that AID: (1) reopen discussions and obtain revised proposals based on AID's actual requirements, and make a new best-value determination; and (2) reimburse the protester for its protest cost.