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[Protest of Army Rejection of Bid as Nonresponsive]

B-222476: Jun 24, 1986

A firm protested the Army's rejection of its bid for the acquisition of unmounted magnetic compasses, contending that the Army improperly determined that its bid was materially unbalanced. GAO found that: (1) the Army properly rejected the protester's bid as materially unbalanced; and (2) the protester improperly allocated capital expenditures for first articles rather than amortizing the expense...

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B-222476, JUN 24, 1986, 86-1 CPD 582

B-222476: Jun 24, 1986

A LOW BID IN WHICH THE FIRST ARTICLE UNIT PRICE CHARGED BY THE BIDDER WAS MORE THAN 1. 000 TIMES GREATER THAN THE UNIT PRICES FOR THE PRODUCTION ITEMS WAS PROPERLY REJECTED AS MATERIALLY UNBALANCED BECAUSE AN AWARD TO THE FIRM WOULD RESULT IN THE PAYMENT OF FUNDS EARLY IN THE CONTRACT PERIOD . TO WHICH THE FIRM IS NOT ENTITLED WITH RESPECT TO THE VALUE OF THE FIRST ARTICLES. WHERE ANY CAPITAL EXPE...

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