B-230610: Jul 12, 1988

A firm protested a Navy contract award for engineering and technical support services, contending that the: (1) awardee improperly based its bid on deflated hourly labor rates; and (2) Navy improperly evaluated the awardee's bid, since it failed to adjust the awardee's cost estimate to compensate. GAO held that the Navy failed to: (1) properly evaluate bids for compliance with the hourly rate prov...

B-230610: Jul 12, 1988

Protest is sustained where. Should be read as requiring that cost estimates based on deflated hourly rates will not be accepted as is but will instead be adjusted in the cost realism analysis to take deflated hourly rates into account. PAI contends that Resource's proposal was based on deflated hourly labor rates and SPAWAR's failure to adjust Resource's cost estimate to compensate for this result...