Keystone Ship Berthing, Inc.

A firm protested the terms Department of the Navy solicitation for layberth services for seven Large Medium Speed Roll-On, Roll-Off vessels, contending that the solicitation's reduction in contract clause is directly contrary to provisions in the Federal Acquisition Regulation addressing post-award contract administration matters. GAO held that the Navy reasonably included in the solicitation a risk allocation clause that serves as an incentive to the contractor to anticipate contingencies and to act in a manner that will minimize any disruptions in contract performance. Accordingly, the protest was denied.