[Protest of Navy Decision To Perform Maintenance Functions In-House]

B-219430: Oct 28, 1985

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A firm protested the Navy's determination not to contract for certain maintenance services pursuant to an Office of Management and Budget Circular A-76 cost comparison, contending that the Navy's computation of its cost estimate for in-house performance of the services was erroneous in several respects. The Navy contended that GAO did not have the authority to decide the protest because it did not award a contract. GAO held that: (1) it would consider the protest pursuant to the provisions and objectives of the Competition in Contracting Act; (2) the Navy reasonably based its personnel cost estimate on both historical and administrative data that accurately reflected the most efficient method of performing the required services; (3) the Navy reasonably based its material costs estimate on a 12-percent discount; (4) the Navy correctly calculated the residual value of assets in preparing its estimate; and (5) the Navy's estimate included certain maintenance and repair costs that the protester alleged it had omitted. Accordingly, the protest was denied.