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[Protest of Army Contract Award for Storage Services]

B-280766.3 Published: Apr 12, 1999. Publicly Released: Apr 12, 1999.
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Highlights

A firm protested an Army contract award for storage services, contending that the Army: (1) failed to perform a proper cost realism evaluation; and (2) made an improper source selection. GAO held that the: (1) Army's evaluation of the awardee's proposal was unreasonable, since it was based on the use of personnel in a labor category with a wage determination labor rate substantially lower than that of the labor category specified in the solicitation; and (2) Army did not assess the realism of the awardee's proposed overhead rate, which was significantly below its most recent Defense Contract Audit Agency approved rate. Accordingly, the protest was sustained, and GAO recommended that the Army: (1) review the alternate labor category to determine whether it is acceptable, revise the solicitation, if necessary, to include the labor categories, and request revised proposals; (2) reevaluate the awardee's proposal consistent with the terms of the solicitation if it is determined that the alternate labor category is inappropriate; (3) terminate the awardee's contract and make award to the protester, if otherwise appropriate; and (4) reimburse the protester for its protest costs.

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