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Protest Questioning Reasonableness of Government Estimate for IFB

B-201833: Jun 9, 1981

A firm questioned the reasonableness of an estimate for an invitation for bids (IFB) on a readvertised solicitation. In response to the original solicitation, the agency received only one bid which was over 90 percent higher than the Government estimate. Consequently, the bid was rejected and the work scheduled to be readvertised. Two bidders responded to the second bid but, subsequent to the bid...

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B-201833, JUN 9, 1981

B-201833: Jun 9, 1981

DIGEST: DETERMINATION THAT BID PRICE IS NOT REASONABLE IN RELATION TO GOVERNMENT ESTIMATE IS MATTER OF ADMINISTRATIVE DISCRETION WHICH GAO WILL NOT QUESTION UNLESS IT IS UNREASONABLE OR THERE IS SHOWING OF BAD FAITH OR FRAUD. WE CANNOT SAY ESTIMATE WAS UNREASONABLE. DOES NOT ESTABLISH ESTIMATE WAS UNREASONABLE. THE SOLICITATION WAS A READVERTISEMENT FOR AN EDM TRILATERATION SYSTEM INSTRUMENTATION...

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