[Protest of DIA Contract Award for Engineering and Technical Support Services]

B-260478.2: Jul 10, 1995

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A firm protested a Defense Intelligence Agency (DIA) contract award for engineering and technical support services, contending that: (1) DIA improperly evaluated its cost proposal; and (2) failed to conduct meaningful discussions regarding its proposed sample costs. GAO held that: (1) DIA acted reasonably in not accepting the protester's low rate because its overall costs were severely understated; (2) the independent government cost estimates (ICGE) were realistic and compatible with estimates for similar work procedures; and (3) the protester failed to show that it was prejudiced during the evaluation of its cost proposal. Accordingly, the protest was denied.

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