A firm protested the Department of Veterans Affairs' (VA) rejection of its bid for medical supplies as unreasonably priced, contending that VA unreasonably rejected its proposal. GAO held that VA unreasonably rejected the protester's proposal: (1) as unreasonably priced; and (2) without requesting a final offer, as the solicitation required. Accordingly, the protest was sustained, and GAO recommen...

Outright rejection of proposal for unreasonable pricing was improper. Agency should have given protester opportunity through discussions to establish which items were priced acceptable. Contracts are negotiated with more than one supplier for delivery of commercial supplies and services that are comparable and of the same generic type. Contracts are awarded only after the contracting officer deter...