B-210577: Feb 17, 1983

A firm protested the award of a contract by the General Services Administration. The basis of the protest was that the contract was essentially a loss contract. However, the practice of below-cost bidding is not illegal and the Government cannot withhold or disturb an award merely because the low offer is below cost. Whether the low bidder can perform the contract at the bid price is a matter of b...

B-210577: Feb 17, 1983

GAO WILL NOT REVIEW AFFIRMATIVE DETERMINATION OF RESPONSIBILITY EXCEPT IN LIMITED CIRCUMSTANCES. THE BASIS OF THE PROTEST IS THAT THE CONTRACT ESSENTIALLY IS A LOSS CONTRACT. THE PRACTICE OF BELOW-COST BIDDING IS NOT ILLEGAL AND THE GOVERNMENT CANNOT WITHHOLD OR DISTURB AN AWARD MERELY BECAUSE THE LOW OFFER IS BELOW COST. WHETHER THE LOW BIDDER CAN PERFORM THE CONTRACT AT THE BID PRICE IS A MATTER...