[Protest of Navy Contract Award for Ship Operation]

B-255309.4,B-255309.5: Jun 8, 1994

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A firm protested a Navy contract award for ship operation and maintenance, contending that the awardee's: (1) proposed costs were unrealistic; and (2) bid was not prepared in accordance with the solicitation specifications. GAO held that the Navy: (1) reasonably accepted the awardee's proposed costs, since the awardee agreed to cap its rates; and (2) properly allowed the awardee to utilize alternate pricing methods. Accordingly, the protest was denied.