[Protest of GSA Contract Award for Air Freight Services]

B-218983: Jun 6, 1985

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A firm protested a General Services Administration (GSA) contract award, contending that GSA improperly accepted a below-cost bid in violation of fair bidding standards. GAO noted that the practice of below-cost bidding is not illegal and that the government cannot withhold an award merely because the low bid is below cost. The protester did not show that the contracting officer acted fraudulently or in bad faith in determining the low bidder's responsibility; therefore, GAO would not review the protest. Accordingly, the protest was dismissed.