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[Protest of Air Force Fixed-Price Contract Award for Refueling Booms]

B-220273: Sep 30, 1985

A firm protested the Air Force's award of a fixed-price contract for refueling booms, contending that the awardee's item bid price was lower than its price on a prior contract and was indicative of an attempt to eliminate small business competition. GAO believed that, in stating that the awardee's price was below its price on a prior contract, the protester may have been alleging that the offer co...

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B-220273, SEP 30, 1985, 85-2 CPD 367

B-220273: Sep 30, 1985

CONTRACTS - NEGOTIATIONS - OFFERS OR PROPOSALS - PRICES - UNPROFITABLE DIGEST: THERE IS NO LEGAL BASIS TO OBJECT TO A BELOW-COST OFFER. IS INDICATIVE OF AN ATTEMPT TO ELIMINATE SMALL BUSINESS COMPETITION BY "PREDATORY PRICING" AND BUYING-IN. WE HAVE CONSIDERED PREVIOUSLY A CONTENTION THAT AN AWARD TO A BELOW COST OR BUY-IN OFFEROR WOULD RESTRICT FREE AND OPEN COMPETITION. FIXED-PRICE OFFER IS NOT...

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