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Allegation That Bid Price Was Unreasonably Low

B-193774 Jan 31, 1979
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Two firms contended that the awardee's price was unreasonably low and, therefore, the contractor can not perform the contract properly. It was contended further that the contracting officer showed favoritism toward a minority contractor because the awardee was performing refuse contracts for the same procurement and had no knowledge of custodial services. The mere fact that a bidder may have submitted a below-cost bid does not constitute a legal basis for precluding a contract award. Regarding the protesters' contention that the contract could not be performed properly, it was pointed out that whether the contractor complies with the contract administration is not for consideration under Bid Protest Procedures. It is the contracting agency's responsibility to take appropriate action if the contract is not performed properly.

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