Protest Regarding Improper Disclosure of Information in Initial Proposals

The protester objected to the proposed award of a contract, alleging that it had been placed at a competitive disadvantage. Despite the improper disclosure of information in the initial proposal, there was no objection to the contracting officer's determination that a fair and reasonable price was lacking and that award should not be made on the basis of the initial proposals. Since the agency attempted to eliminate the unfair advantage by disclosing both offerers' prices before best and final offers, the first offerer was disadvantaged because it was not advised that the second offerer had alleged a mistake in its proposal, requesting a substantial downward price correction. Unless the second offerer agrees to the release of its mistake in proposal claim, it should be eliminated from competition. If it agrees to the disclosure, an additional round of best and final offers should be obtained prior to award.