[Protest of Army Cost Comparison Under OMB Circular A-76]

B-236004: Oct 26, 1989

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A firm protested an Army decision to perform audiovisual support services in-house, contending that the Army: (1) improperly conducted a cost comparison, since a satisfactory contractor offered to perform the work at a reasonable price; (2) improperly applied a differential for personnel conversion costs against its bid; and (3) failed to include certain personnel costs in the government estimate. GAO held that the: (1) protester untimely filed after bid opening its protest against alleged solicitation improprieties, since the solicitation advised bidders of the cost comparison; (2) Army's determination of its requirements was not a matter for GAO review; and (3) Army properly excluded the cost of certain personnel whose positions would not be eliminated if it awarded a contract. Accordingly, the protest was dismissed in part and denied in part.