B-222514, APR 22, 1986, 86-1 CPD 392
Highlights
BIDS - PRICES - BELOW COST - EFFECT ON BIDDER RESPONSIBILITY DIGEST: THERE IS NO LEGAL BASIS TO OBJECT TO BELOW COST BID. WHETHER A BIDDER CAN MEET CONTRACT REQUIREMENTS IN LIGHT OF THE LOW PRICE IS A MATTER OF BIDDER RESPONSIBILITY. THE AFFIRMATIVE DETERMINATION OF WHICH IS NOT REVIEWED BY THE GENERAL ACCOUNTING OFFICE EXCEPT IN LIMITED CIRCUMSTANCES NOT PRESENT HERE. ARE NONRESPONSIVE. J AND J CONTENDS THAT ALLIED'S PRICE IS FAR TOO LOW AND THAT CREATIVE INTERIORS' BID WAS NONRESPONSIVE FOR OTHER REASONS. THERE IS NO LEGAL BASIS TO OBJECT TO A BELOW-COST BID. THE FACT THAT ALLIED'S BID IS SIGNIFICANTLY LOWER THAN THE OTHER BIDS RECEIVED AND MAY BE BELOW WHAT ACTUAL PERFORMANCE WILL COST DOES NOT RENDER THE BID NONRESPONSIVE.
B-222514, APR 22, 1986, 86-1 CPD 392
BIDS - PRICES - BELOW COST - EFFECT ON BIDDER RESPONSIBILITY DIGEST: THERE IS NO LEGAL BASIS TO OBJECT TO BELOW COST BID. WHETHER A BIDDER CAN MEET CONTRACT REQUIREMENTS IN LIGHT OF THE LOW PRICE IS A MATTER OF BIDDER RESPONSIBILITY, THE AFFIRMATIVE DETERMINATION OF WHICH IS NOT REVIEWED BY THE GENERAL ACCOUNTING OFFICE EXCEPT IN LIMITED CIRCUMSTANCES NOT PRESENT HERE.
J AND J MAINTENANCE, INC.:
J AND J MAINTENANCE, INC. PROTESTS THE AWARD OF A CONTRACT TO EITHER ALLIED AIR COMPANY OR CREATIVE INTERIORS UNDER SOLICITATION NO. GS-07-P 86 -HT-D-0002-7SB, ISSUED BY THE GENERAL SERVICES ADMINISTRATION FOR BUILDING PREVENTIVE MAINTENANCE IN SAN ANTONIO AND DEL RIO, TEXAS.
J AND J CONTENDS THAT ALLIED AND CREATIVE, THE LOW AND SECOND LOW BIDDERS, RESPECTIVELY, ARE NONRESPONSIVE. J AND J CONTENDS THAT ALLIED'S PRICE IS FAR TOO LOW AND THAT CREATIVE INTERIORS' BID WAS NONRESPONSIVE FOR OTHER REASONS.
THERE IS NO LEGAL BASIS TO OBJECT TO A BELOW-COST BID. MANAGEMENT CONSULTING, INC., B-216299, SEPT. 12, 1984, 84-2 CPD PARA. 288. THEREFORE, THE FACT THAT ALLIED'S BID IS SIGNIFICANTLY LOWER THAN THE OTHER BIDS RECEIVED AND MAY BE BELOW WHAT ACTUAL PERFORMANCE WILL COST DOES NOT RENDER THE BID NONRESPONSIVE. WHETHER A BIDDER CAN MEET CONTRACT REQUIREMENTS IN LIGHT OF A BELOW-COST PRICE IS A MATTER OF BIDDER RESPONSIBILITY. ALTHOUGH J AND J ALSO CHALLENGES ALLIED'S RESPONSIBILITY, AFFIRMATIVE DETERMINATIONS OF RESPONSIBILITY ARE NOT REVIEWED BY OUR OFFICE UNLESS THERE IS A SHOWING THAT THE DETERMINATION MAY HAVE BEEN MADE FRAUDULENTLY OR IN BAD FAITH OR THAT DEFINITIVE RESPONSIBILITY CRITERIA IN THE SOLICITATION WERE NOT MET. 4 C.F.R. SEC. 21.3(G)(4) (1985); CLARK INTERNATIONAL SECURITY, INC., B-216320, SEPT. 28, 1984, 84-2 CPD PARA. 369. NEITHER EXCEPTION IS PRESENT HERE.
UNDER THE CIRCUMSTANCES, WE HAVE NO BASIS TO OBJECT TO ALLIED'S BID. THAT BEING SO, WE NEED NOT CONSIDER J AND J'S CHALLENGE TO THE CREATIVE INTERIORS BID.
THE PROTEST IS DISMISSED.