Protest of Appeal Denial

A firm protested the denial of an appeal of an agency decision to continue to perform hospital custodial services on an in-house basis. The firm requested GAO to perform a detailed audit and review to determine the validity of the agency's manpower projections and cost estimates. The solicitation had notified offerors that, after completion of the evaluation of proposals and negotiation and selection of the most advantageous proposal, a cost comparison between that proposal and an in-house cost estimate would determine whether the work would be contracted out or remain in-house. The protester's proposal was determined to be most advantageous to the Government but, after a comparison with the Government's in-house cost estimate, the protester's proposal was found to be high. The protester appealed this decision with the agency and then with GAO. The protester contended that the agency's man-hour projections were defective, its charge for the utilization of Government capacity was grossly overstated, and its figure for net proceeds from disposal of equipment was severely understated. The protester argued that, but for these errors, its offer would have been lower than the agency's in-house cost estimate. The agency argued that all of the disputed costs and projections have been verified by audit as reasonably accurate. GAO concluded that the protester failed to present the information and evidence necessary to substantiate its allegations. GAO examined the material considered by the agency and found its decision to be reasonable. Accordingly, the protest was denied.