Protester's Objections to Hired Labor Estimate

B-193369: Apr 2, 1979


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    Under the Industry Capability Program, the Army Corps of Engineers sought bids for maintenance dredging in the Buffalo, New York, River and Harbor. The program required that the Corps estimate the cost of doing the work with the Corps dredge, and the low industry bid must be within 25 percent of the hired labor estimate. Two bids received were more than 50 percent over the Corps' estimate, whereupon the Corps canceled the invitation for bids (IFB) as required by regulation and performed the work with its own equipment. One of the firms protested that the IFB did not reveal that the procurement was part of the Industry Capability Program, but it was held that this objection was without merit. The protester also challenged the reasonableness of the Corps' hired labor estimate. Since it appeared that the Corps of Engineers had considered the protester's objections and the protester failed to demonstrate clearly that the estimate was erroneous, the protest was denied.

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