[Requests for Reconsideration of Protest of Navy Contract Award]

B-247036.2,B-247036.3: Aug 4, 1992

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The Navy and a firm requested reconsideration of a sustained protest of a Navy contract award for a logistics training simulator and related supplies and services. GAO had held that the Navy failed to evaluate bids according to the specified evaluation criteria. In its request for reconsideration, the awardee contended that GAO: (1) failed to allow the protester time to respond to a protest issue that GAO raised; (2) substituted its cost-realism evaluation for the Navy's; and (3) inappropriately recommended contract termination. The Navy contended that: (1) it was not in the government's best interest to terminate the contract; and (2) GAO improperly allowed reimbursement of protest costs. GAO held that: (1) the reasonableness of the Navy's cost evaluation was constantly at issue; (2) it properly performed a cost-realism evaluation; (3) the savings to the government outweighed the possible costs and delays of the contract termination; and (4) the protester was entitled to reimbursement for its bid and protest preparation costs. Accordingly, the original decision was affirmed, but GAO: (1) reversed its recommendation that the Navy terminate the awarded contract; and (2) recommended that the Navy reimburse the protester for its bid and protest preparation costs.

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