[Protest of Army Contract Award for Tank Power Units]

B-228318: Jan 25, 1988

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A firm protested an Army contract award for tank power units, contending that the Army should have held discussions, since: (1) it did not advise offerers that it might make award on the basis of initial proposals; (2) discussions would have provided it the opportunity to significantly reduce its bid price; and (3) its total bid price for the basic contract plus an option quantity was lower than the awardee's. GAO held that the Army: (1) obtained full and open competition; (2) incorporated into the solicitation a clause advising offerers that it might make award on the basis of initial proposals; (3) reasonably assumed that pricing strategies caused the disparity between the protester's and other offerers' proposed prices for one line item; and (4) was not required to consider the option quantity. Accordingly, the protest was denied.