Protest Alleging Proposed Awardee's Bid Is Unbalanced
B-201254: Feb 3, 1981
- Full Report:
A company protested the proposed award of a contract by the Department of the Navy. The company alleged that the proposed awardee's bid was unbalanced between the basic and the option quantities offered and, therefore, the bid was nonresponsive. GAO recognizes the two-fold aspects of unbalanced bidding; the first being a mathematical evaluation of the bid to determine whether each item carries its share of the cost, and the second involving an assessment of the cost impact of a mathematically unbalanced bid, called material unbalancing. A bid is not materially unbalanced unless there is a reasonable doubt that the award to a bidder submitting a mathematically unbalanced bid will not result in the lowest cost to the Government. Even if the awardee's bid had been assumed to be mathematically unbalanced, it would not have been materially unbalanced, since the award was made for both the basic and the option quantities offered. Therefore, there was no doubt that the award would be made at the lowest ultimate cost to the Government. Accordingly, the protest was denied.