B-218983, JUN 6, 1985

B-218983: Jun 6, 1985

Additional Materials:

Contact:

Shirley Jones
(202) 512-8156
jonessa@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

THE PRACTICE OF BELOW-COST BIDDING IS NOT ILLEGAL AND THE GOVERNMENT CANNOT WITHHOLD OR DISTURB AN AWARD MERELY BECAUSE THE LOW BID OR OFFER IS BELOW COST. WHETHER THE LOW BIDDER CAN PERFORM THE CONTRACT AT THE BID PRICE IS A MATTER OF RESPONSIBILITY OF THE BIDDER. OUR OFFICE DOES NOT REVIEW PROTESTS CONCERNING AFFIRMATIVE DETERMINATION OF RESPONSIBILITY ABSENT A SHOWING THAT THE CONTRACTING OFFICER ACTED FRAUDULENTLY OR IN BAD FAITH OR THAT DEFINITIVE RESPONSIBILITY CRITERIA IN THE SOLICITATION HAVE NOT BEEN MET. NEITHER EXCEPTION IS ALLEGED HERE.

B-218983, JUN 6, 1985

BIDS - PRICES - BELOW COST - NOT BASIS FOR PRECLUDING AWARD DIGEST: NO BASIS EXISTS TO PRECLUDE A CONTRACT AWARD MERELY BECAUSE THE LOW BIDDER SUBMITTED A BELOW-COST BID.

TRAFFIC MARKETING DEVELOPMENT SERVICES, U.S.A., INC.:

TRAFFIC MARKETING DEVELOPMENT SERVICES, U.S.A., INC. (TRAFFIC), PROTESTS THE AWARD OF A CONTRACT TO SEA AIR INTERNATIONAL (SAI) UNDER A GENERAL SERVICES ADMINISTRATION (GSA) SOLICITATION FOR AIR FREIGHT SERVICES. TRAFFIC CONTENDS GSA IMPROPERLY ACCEPTED A BELOW-COST BID FROM SAI IN VIOLATION OF "FAIR BIDDING" STANDARDS.

WE DISMISS THE PROTEST.

THE PRACTICE OF BELOW-COST BIDDING IS NOT ILLEGAL AND THE GOVERNMENT CANNOT WITHHOLD OR DISTURB AN AWARD MERELY BECAUSE THE LOW BID OR OFFER IS BELOW COST. BUR-TEL SECURITY PROTECTION SYSTEMS, B-218829, MAY 16, 1985, 85-1 CPD PARA. ---; TEAMSTER LOCAL NO. 270, B-208634, SEPT. 15, 1982, 82-2 CPD PARA. 230. FURTHER, WHETHER THE LOW BIDDER CAN PERFORM THE CONTRACT AT THE BID PRICE IS A MATTER OF RESPONSIBILITY OF THE BIDDER. OUR OFFICE DOES NOT REVIEW PROTESTS CONCERNING AFFIRMATIVE DETERMINATION OF RESPONSIBILITY ABSENT A SHOWING THAT THE CONTRACTING OFFICER ACTED FRAUDULENTLY OR IN BAD FAITH OR THAT DEFINITIVE RESPONSIBILITY CRITERIA IN THE SOLICITATION HAVE NOT BEEN MET. SUN TEMPORARY SERVICES, B-210577, FEB. 17, 1983, 83-1 CPD PARA. 167. NEITHER EXCEPTION IS ALLEGED HERE.