[Protest of Marine Corps Contract Award for Ship Maintenance]

B-246236.6,B-246236.7,B-246236.9: Jan 24, 1994

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A firm protested a Marine Corps contract award for maintenance of shipboard equipment, contending that the Corps: (1) performed an improper cost realism analysis of the awardee's bid; (2) improperly determined that the awardee was the low bidder; and (3) improperly permitted the awardee to base its cost cap on a labor agreement that might not be enforceable. GAO held that the: (1) Corps reasonably accepted the awardee's proposed cap on direct labor expenses and differentiated between capped and non-capped labor as part of its cost realism evaluation; (2) awardee's cost cap was not contingent on the enforcement of its labor agreement; (3) Corps clearly understood the impact and limitations of the awardee's proposed cap; (4) Corps sought expert advice on the legality of the awardee's labor agreement; and (5) Corps reasonably evaluated the awardee's proposed costs. Accordingly, the protest was denied.