A firm protested a Military Sealift Command (MSC) contract award for design and engineering services, contending that MSC improperly evaluated technical and cost bids. GAO held that MSC reasonably: (1) accepted the awardee's initial bid, since the bid acceptance period had not expired and the awardee's bid modifications were technically acceptable and did not preclude a reasonable cost evaluation;...

Initial proposal as modified by technical revisions during negotiations was technically acceptable. Cost impact of technical revisions was sufficiently minimal that failure to submit a revised cost proposal reflecting revisions did not preclude a reasonable cost evaluation. Where there was a significant discrepancy between the protester's historical indirect cost rates and its proposed rates. The...