[Protest of Air Force Contract Award for Tail Section Modification Kit Pilot Production]

A firm protested an Air Force contract award for tail section modification kit pilot production, contending that the: (1) Air Force unreasonably evaluated the technical and cost proposals; and (2) source selection authority's best value decision failed to take certain risk and cost factors into account. GAO held that the: (1) Air Force reasonably determined that the financial risk to the awardee for failing to produce the developmental component on time was a sufficient incentive for the awardee to meet its production schedule and that the new component would only impact the unit's affordability; (2) Air Force reasonably determined that the awardee's proposed prices were reasonable; (3) Air Force's evaluation did account for the higher risk due to the awardee's proposed replacement component; and (4) source selection authority considered all matters concerning the awardee's prices and technical proposal and reasonably made award to the bidder which offered the best value. Accordingly, the protest was denied.