[Protest of Navy Contract Award]

B-213738: Jun 2, 1984

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A firm protested a contract award to another firm under a Navy small business set-aside solicitation, contending that: (1) the Navy did not perform its cost evaluation in accordance with the solicitation specifications because it improperly evaluated the cost of contract options; (2) the awardee's proposed cost was unrealistically low; (3) the Navy improperly procured additional services by modifying the awardee's contract to require the awardee to subcontract for the additional services; and (4) the Small Business Administration (SBA) determined that the awardee was not a small business. GAO held that: (1) the Navy properly considered contract options in performing the cost evaluation; (2) the Navy reasonably determined that the awardee's cost was realistic; (3) the contract modification was executed by the Navy to maximize competition and was not improper; and (4) since the Navy made the contract award on an urgent basis, the SBA determination affected only future procurements and did not affect the propriety of this contract award. Accordingly, the protest was denied.

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