[Protest of Navy Contract Award for Support System]

A firm protested a Navy contract award for system support services, contending that: (1) the Navy's cost realism analysis was flawed because it failed to consider differences in direct labor rates between the awardee's proposed rates and it's higher rates; (2) the awardee engaged in prohibited "bait and switch" tactics; and (3) the Navy improperly evaluated its proposal. GAO held that: (1) the Navy reasonably relied on reviews and recommendations by the Defense Contract Audit Agency of the awardee's direct labor hourly rates, and the Navy reasonably determined that the projected cost of awardee's performance presented no technical risk; (2) there was no evidence that the awardee knowingly or negligently made any misrepresentation regarding employees that it did not expect to furnish during contract performance; and (3) the evaluation was in accordance with the stated solicitation criteria. Accordingly, the protest was denied.