[Request for Reconsideration of Denial of Protest Against Navy Cost Comparison Methods]

A firm requested reconsideration of the denial of its protest against the Navy's decision to exclude several staff positions from a cost analysis comparing in-house performance with contracting. GAO held that: (1) the Navy rejected the protester's initial protest because the net effect of correcting cost comparison errors would only reduce the cost of in-house performance; (2) the procuring agency was responsible for determining the number of employees needed to accomplish the required work; (3) the protester did not show that the Navy improperly determined that the six staff positions were responsible for performing government-in-nature functions and that the remaining staff positions were sufficient to perform the required work; (4) the solicitation required that the personnel costs for accomplishing contract performance include the in-house personnel cost estimate; (5) it would not consider the protester's new grounds for protest because the protester knew the basis for protest more than 3 months prior to its reconsideration request; and (6) mere disagreement over the number of contract personnel necessary to ensure contract performance provided no basis to overturn the finding that the waiver was, at least in part, valid. Accordingly, the request for reconsideration was denied.