Claim for Proposal Preparation Costs

A firm requested reconsideration of a GAO decision which denied its claim for proposal preparation costs. The claimant argued that, under a recent Court of Claims decision, it is entitled to proposal preparation costs because there was a substantial chance that it would have received the award. As the contractor's selection was based upon a cost realism analysis which would not have resulted in an award to the claimant, GAO found that the claimant was not damaged. To recover proposal preparation costs, the claimant would be required to show that it had a substantial chance to receive the award. The records indicated that if the agency acted properly, the claimant did not have a substantial chance of receiving an award. Therefore, GAO concluded that, although the claimant was in the competitive range, it was not entitled to proposal preparation costs because, based on a proper cost realism analysis, the agency would not have made an award to the claimant. Accordingly, the prior decision denying the claim was affirmed.