[Protest of Army Corps of Engineers' Termination of Contract for Loading Machine]

B-257822.4: Mar 1, 1995

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A firm protested the Army Corps of Engineers' termination of its contract for a loading machine, contending that the Army misapplied the Buy American Act penalty in determining its evaluated price. GAO held that the: (1) protester offered a foreign-end product; and (2) Corps improperly included costs for services to be performed after the delivery of the protester's foreign-made equipment in calculating the surcharge. Accordingly, the protest was sustained and GAO recommended that the Corps: (1) obtain clarification from the protester as to the costs associated with the foreign-end product; (2) reevaluate the protester's bid price, applying the surcharge only to the foreign-end item; (3) reinstate the contract award if the protester's price remains low; and (4) reimburse the protester for its protest costs.

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