[Complaint Concerning the State of Michigan's Award of Federally Funded Contract]

B-216715: Feb 5, 1985

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A firm complained about the award of a federally funded contract to another firm under a solicitation issued by the State of Michigan's Department of Management and Budget for a telephone system to be installed at a National Guard facility. The protester contended that the awardee's bid was so low that it could not provide new telephone cable as required by the solicitation, and the protester suggested that the awardee either planned to request a contract modification allowing use of existing telephone cable at the facility or to sustain a loss on the contract. GAO held that there was no legal basis to object to a bid that may be below cost. GAO also noted that the protester's concern that the awardee might seek to modify the contract was not grounds for rejecting the awardee's bid. Accordingly, the complaint was denied.

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