Procurement from Government-Owned, Contractor-Operated Factories

B-189604: Jan 18, 1978

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The protester objected to the Army's decision to allow governmentowned, contractor-operated (GOCO) factories to compete for a contract and to the basis on which offers from GOCO plants were to be evaluated. Cost comparisons required by the Arsenal Statute for determination of whether supplies can be obtained from GOCO factories on an economical basis may be made by comparing fixed priced offers from contractor-owned and operated plants with out-of-pocket cost estimates from GOCO plants; such comparisons are not prohibited by the Cost Accounting Standards Act.

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