Allegation of Procedural Errors During Contract Negotiations

A protester alleged that procedural errors occurred during negotiations leading to a contract award to another offeror and that award should have been made on the basis of initial proposals since the prices offered were so close. Although the exercise of the right to award contracts on the basis of initial proposals is discretionary, the agency's practice of conducting negotiations in all procurements with "high dollar value or operational significance" was not objectionable. The protester's price was not compromised during the negotiations, and use of the Government estimate as a negotiating tool was not proscribed by the procurement regulations.