[Protest of Navy Contract Award]

B-212084: Jun 28, 1983

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A firm protested a Navy contract award for ship repairs, contending that the awardee's bid was unreasonably low and should have been rejected. GAO held that the practice of below-cost bidding is not illegal and that the Government cannot withhold or disturb an award merely because the low bid is below cost. GAO stated that the question of whether a bidder can satisfactorily perform the contract at its bid price is a matter of bidder responsibility to be determined by the contracting officer which determination will not be reviewed by GAO except in circumstances which were not relevant in this case. Accordingly, the protest was dismissed.