[Protest of Proposed Navy Contract Award and Request for Reconsideration of Denied Protest of Proposed Award]

B-230972.3,B-230972.4: Nov 23, 1988

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Two firms protested a proposed Navy contract award for engineering and technical services. One protester contended that the Navy: (1) failed to hold adequate discussions; and (2) improperly awarded the contract, since the awardee's bid was $2.7 million higher than the low bid. The other protester requested reconsideration of its denied protest against the Navy's evaluation of its bid. GAO had held that the Navy reasonably downgraded the protester's bid based on staffing, compensation, and work-hour concerns. In its request for reconsideration, the protester contended that GAO failed to: (1) properly consider its work-hour proposal and professional personnel; (2) acknowledge that it had restored certain fringe benefits to its personnel; and (3) adequately address its allegations of inadequate discussions. GAO held that the: (1) Navy properly conducted two rounds of technical discussions and provided offerers an opportunity to revise their bids; (2) Navy reasonably made award to the offerer with the highest technically rated bid, since the solicitation provided that technical capability was more important than cost; and (3) second protester failed to show how the prior decision was erroneous. Accordingly, the protest was denied, and the original decision was affirmed.

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