Effect of Common Knowledge of Incumbent Contractor's Structures and Schedules on Other Bids

B-185268: Feb 10, 1976

Additional Materials:


Ralph O. White
(202) 512-8278

Kenneth E. Patton
(202) 512-8205


Office of Public Affairs
(202) 512-4800

The incumbent contractor alleged that, because its price structures and schedules were matters of common knowledge, other bidders were able to bid below their prices to obtain the award. The utilization of such information by competitors had no bearing on the award to other than the incumbent since the logical extension of the arguments would result in all contracts being awarded to incumbents as a matter of course. There was no legal prohibition to below-cost bidding. The solicitation requirement that equipment to perform the contract be in place and operable was a matter of responsibility, and wording of the invitation cannot be interpreted as turning the matter into a question of bid responsiveness.