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[Protest of Navy Contract Awards for Dental Services]

B-258699,B-258699.2 Published: Feb 13, 1995. Publicly Released: Feb 13, 1995.
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Highlights

A firm protested several Navy contract awards for dental services, contending that the: (1) Navy improperly communicated with bidders prior to the awards; (2) Navy improperly allowed nonresponsive bidders to correct their bids after submission; (3) Navy was biased against it; (4) other bidders failed to submit certificates of independent price determination as required; (5) competition was unfair; and (6) Navy improperly attempted to terminate its existing contract for default. GAO held that: (1) the Navy properly communicated with the bidders to clarify minor bid errors and did not engage in material discussions with the bidders; (2) the Navy properly permitted the bidders to correct their minor bid errors and omissions; (3) there was no evidence of Navy bias against the protester; and (4) the other protest issues were not subject to GAO review. Accordingly, the protest was denied in part and dismissed part.

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B-204872, MAR 10, 1982

DIGEST: 1. THE MERE FACT THAT BIDDER MAY HAVE SUBMITTED A BELOW-COST BID DOES NOT CONSTITUTE A LEGAL BASIS FOR PRECLUDING A CONTRACT AWARD. 2. GAO WILL NOT CONSIDER PROTEST CONCERNING SMALL BUSINESS SIZE STATUS, SINCE SMALL BUSINESS ADMINISTRATION IS EMPOWERED TO CONCLUSIVELY DETERMINE SMALL BUSINESS SIZE STATUS.

PSI MOBILE PRODUCTS, INC.:

PSI MOBILE PRODUCTS, INC. (PSI), PROTESTS THE PROPOSED AWARD OF A CONTRACT TO SOUTHWEST TRUCK BODY COMPANY (SOUTHWEST), THE LOW BIDDER, UNDER SOLICITATION NO. DAAJ09-81-B-0899, A SMALL BUSINESS SET-ASIDE ISSUED BY THE DEPARTMENT OF THE ARMY, TROOP SUPPORT AND AVIATION MATERIEL READINESS COMMAND.

PSI, THE SECOND LOW BIDDER, ALLEGES THAT SOUTHWEST'S BID WAS UNREASONABLY LOW. PSI SUGGESTS THAT THE LOW PRICE MAY HAVE BEEN DUE TO A FAILURE TO CONSIDER ESSENTIAL SPECIFICATIONS WHICH WERE CONTAINED IN CERTAIN PAGES MISSING FROM SOUTHWEST'S ORIGINAL COPY OF THE SOLICITATION. IN ADDITION, THE PROTESTER CONTENDS THAT SOUTHWEST DOES NOT QUALIFY AS A SMALL BUSINESS CONCERN.

THE PROTEST IS DENIED IN PART AND DISMISSED IN PART.

REGARDLESS OF THE PROTESTER'S ALLEGATIONS TO THE CONTRARY, THE RECORD INDICATES THAT, PRIOR TO BIDDING, SOUTHWEST DID RECEIVE AND CONSIDER THE SPECIFICATIONS INCLUDING THOSE CONTAINED IN CERTAIN PAGES WHICH THE AGENCY HAD ORIGINALLY OMITTED FROM THE SOLICITATION. WITH RESPECT TO THE ALLEGATION THAT THE LOW BIDDER'S PRICE WAS UNREASONABLY LOW, WE HAVE HELD THAT THE MERE FACT THAT A BIDDER MAY HAVE SUBMITTED A BELOW-COST BID DOES NOT CONSTITUTE A LEGAL BASIS FOR PRECLUDING A CONTRACT AWARD. KLEEN-RITE CORPORATION, B-190411, NOVEMBER 8, 1977, 77-2 CPD 354. THEREFORE, THIS ASPECT OF PSI'S PROTEST IS DENIED.

WE WILL NOT CONSIDER PSI'S CONTENTION THAT SOUTHWEST SHOULD BE PRECLUDED FROM AN AWARD ON THIS SMALL BUSINESS SET-ASIDE CONTRACT BECAUSE SOUTHWEST IS NOT A SMALL BUSINESS. UNDER 15 U.S.C. SEC. 637(B)(6) (1976), THE SMALL BUSINESS ADMINISTRATION IS EMPOWERED TO CONCLUSIVELY DETERMINE MATTERS OF SMALL BUSINESS SIZE STATUS FOR FEDERAL PROCUREMENT AND SALES PURPOSES. INTERTECHNOLOGY CORPORATION, B-202818, APRIL 24, 1981, 81-1 CPD 320. ACCORDINGLY, THIS ASPECT OF THE PROTEST IS DISMISSED.

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Topics

Bid errorsBid modificationsBidder responsibilityContract administrationContract award protestsContract negotiationsDental servicesNaval procurementService contractsU.S. NavyBid proposalsBiddersFederal acquisition regulationsBid evaluation protests