Protest Against Contract Award

B-200531: Oct 9, 1980

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A firm protested the award of a Navy contract alleging that (1) the awardee's low bid price represented a loss to the company and an undue risk to the Government, and (2) the awardee's poor performance on a prior contract for similar items impacted on the firm's capability to perform and represented the Navy's lax enforcement of the contract terms. GAO held that even if the allegation concerning the below-cost bid were correct, there is no legal prohibition against the acceptance of such a bid from a responsible firm. It was noted that the Navy had received a favorable preaward survey report on the awardee. The question of awardee's ability to perform was a matter of affirmative responsibility determination which GAO does not review except in circumstances not present in this case. Thus, the protest was dismissed.