[Protest of Navy Contract Award for Technical Services]

B-245761,B-245761.2: Jan 31, 1992

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A firm protested a Navy contract award for technical services, contending that the Navy: (1) made unreasonable cost-realism adjustments to its bid; (2) improperly made award to a higher bidder; and (3) unreasonably approved the awardee's subcontracting plan. GAO held that the Navy: (1) reasonably adjusted the protester's bid by moving its higher-priced personnel from the lowest overhead cost center to the highest, since the Navy reasonably concluded that contract performance would require the use of higher-priced personnel in the higher overhead cost center; (2) reasonably determined that the protester's higher 1991 indirect cost rates were more accurate indicators of its proposed indirect cost rates than its estimated future indirect cost rates; (3) reasonably adjusted the protester's labor escalation rate, since its bid did not adequately support its subcontractor's proposed labor escalation rate; (4) reasonably determined that the awardee's higher bid was superior to the protester's bid; and (5) properly accepted the awardee's plan, since it met negotiated minority subcontracting goals. Accordingly, the protest was denied.