[Protest of ARPA Contract Award for Financial Management Support Services]
B-259479.2: May 9, 1995
- Full Report:
A firm protested an Advanced Research Projects Agency (ARPA) contract award for financial management support services, contending that ARPA: (1) failed to perform a proper cost realism analysis; and (2) improperly permitted the awardee to modify its technical approach after contract award. GAO held that: (1) ARPA erroneously concluded that no cost realism analysis was required, even though the solicitation contemplated the award of a cost-reimbursement contract; (2) the contracting officer limited its review of the awardee's direct labor rates to an undocumented and generalized comparison of labor rates used in dissimilar procurements; and (3) ARPA improperly permitted the awardee to modify its bid after award without allowing the other bidders the same opportunity. Accordingly, the protest was sustained and GAO recommended that ARPA: (1) reopen the competition, conduct discussions with all competitive range bidders, and give bidders an opportunity to submit revised proposals; (2) reevaluate the bids and perform an adequate cost realism analysis; (3) terminate the awardee's contract, if it is not the successful bidder; and (4) reimburse the protester for its bid protest costs.