B-260828 LBM, Inc., March 30, 1995
Highlights
The submission of a below cost offer is not a valid basis to object to a contract award. Properly may decide to submit a price that is extremely low. An agency decision that the contractor can perform the contract at the offered price is an affirmative determination of responsbility which we will not review absent a showing of possible fraud or bad faith on the part of procurement officials. Or that definitive responsbility criteria in the solicitation may have been misapplied. The protest is dismissed.
B-260828 LBM, Inc., March 30, 1995
DECISION
LBM, Inc. protests any award of a contract by the Department of Army under invitation for bids No. DAKF24-95-B-0007. LBM contends that the eight low bidders submitted unreasonably low prices.
The submission of a below cost offer is not a valid basis to object to a contract award. An offeror, in its business judgement, properly may decide to submit a price that is extremely low. Diemaster Tool, Inc., B-238877, Apr. 5, 1990, 90-1 CPD Para. 375. An agency decision that the contractor can perform the contract at the offered price is an affirmative determination of responsbility which we will not review absent a showing of possible fraud or bad faith on the part of procurement officials, or that definitive responsbility criteria in the solicitation may have been misapplied. JWK Int'l Corp., B-237527, Feb. 21, 1990, 90-1 CPD Para. 198. Neither exception applies here.
The protest is dismissed.
Michael Golden Acting Associate General Counsel