B-194015, MARCH 7, 1979
Highlights
DIGEST: SUBMISSION OF BELOW-COST BID PRICE IS NOT VALID BASIS UPON WHICH TO CHALLENGE AWARD. ACCEPTANCE OF BID REQUIRES DETERMINATION OF BIDDER RESPONSIBILITY WHICH WILL NOT BE REVIEWED BY GAO EXCEPT IN CIRCUMSTANCES NOT APPLICABLE TO THIS CASE. BECAUSE THIS PROTEST RAISES ISSUES WHICH ARE NOT REVIEWABLE BY GAO. IT IS DISMISSED. WE DO NOT REVIEW THE CONTRACTING OFFICER'S RESPONSIBILITY DETERMINATION UNLESS EITHER FRAUD OR BAD FAITH IS SHOWN ON THE PART OF THE PROCURING OFFICIALS OR WHERE THE SOLICITATION CONTAINS DEFINITIVE RESPONSIBILITY CRITERIA WHICH ALLEGEDLY HAVE NOT BEEN APPLIED. WE HAVE CONSISTENTLY HELD THAT THE SUBMISSION OF A BELOW COST BID. IS NOT A VALID BASIS UPON WHICH TO CHALLENGE AN AWARD.
B-194015, MARCH 7, 1979
DIGEST: SUBMISSION OF BELOW-COST BID PRICE IS NOT VALID BASIS UPON WHICH TO CHALLENGE AWARD. ACCEPTANCE OF BID REQUIRES DETERMINATION OF BIDDER RESPONSIBILITY WHICH WILL NOT BE REVIEWED BY GAO EXCEPT IN CIRCUMSTANCES NOT APPLICABLE TO THIS CASE.
AMERICAN DRAFTING AND LAMINATING CO., INC.:
AMERICAN DRAFTING AND LAMINATING COMPANY PROTESTS ANY AWARD TO COPIER AND CONTROL SYSTEMS, INC., (COPIER) UNDER INVITATIONS FOR BIDS NOS. N00189-79- B-0025 AND N00189-79-B0026 BY THE NAVAL SUPPLY CENTER, NORFOLK, VIRGINIA. THE PROTESTER CONTENDS THAT COPIER SUBMITTED BID PRICES BASED ON MATERIAL AND LABOR COSTS BELOW ITS ACTUAL COSTS. BECAUSE THIS PROTEST RAISES ISSUES WHICH ARE NOT REVIEWABLE BY GAO, IT IS DISMISSED.
WHETHER A BIDDER CAN PERFORM AT ITS BID PRICE RELATES TO THE BIDDER'S RESPONSIBILITY. AGNEW TECH-TRAN, INC., B-184272, JULY 14, 1975, 75-2 CPD 32. WE DO NOT REVIEW THE CONTRACTING OFFICER'S RESPONSIBILITY DETERMINATION UNLESS EITHER FRAUD OR BAD FAITH IS SHOWN ON THE PART OF THE PROCURING OFFICIALS OR WHERE THE SOLICITATION CONTAINS DEFINITIVE RESPONSIBILITY CRITERIA WHICH ALLEGEDLY HAVE NOT BEEN APPLIED. CENTRAL METAL PRODUCTS, INCORPORATED, 54 COMP.GEN. 66 (1974), 74-2 CPD 64; SYSTEMS AND PROGRAMMING RESOURCES, INC., B-192190, AUGUST 16, 1978, 78-2 CPD 124. NEITHER EXCEPTION APPLIES IN THIS CASE.
MOREOVER, WE HAVE CONSISTENTLY HELD THAT THE SUBMISSION OF A BELOW COST BID, OR "BUYING IN", IS NOT A VALID BASIS UPON WHICH TO CHALLENGE AN AWARD. FUTRONICS INDUSTRIES, INC., B-185896, MARCH 10, 1976, 76-1 CPD 169. ALTHOUGH THE DEFENSE ACQUISITION REGULATION SEC. 1-311 (1976 ED.) STATES THAT "BUYING IN IS NOT A FAVORED PRACTICE", IT DOES NOT LEGALLY PROSCRIBE THE SUBMISSION OF BELOW COST BID PRICES. THE REGULATION MERELY CAUTIONS CONTRACTING OFFICERS TO ASSURE THAT LOSSES ARE NOT RECOUPED DURING CONTRACT PERFORMANCE OR THROUGH "FOLLOW-ON" CONTRACTS.
THE PROTEST, THEREFORE, IS DISMISSED.