[Protest of Navy Contract Award for Food Services]

B-241408: Feb 12, 1991

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A firm protested a Navy contract award for food services, contending that the Navy used improper auction techniques that forced it to raise its labor price so that its total bid exceeded the awardee's. GAO held that the Navy: (1) did not improperly engage in auction techniques during discussions with the protester; (2) twice advised the protester that the labor price in its proposal was unrealistically low and would be rejected if it did not increase it to a realistic level; and (3) did not mention a minimum acceptable price increase in order for it to receive further consideration. Accordingly, the protest was denied.

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