[Protest of Exclusion of Economic Price Adjustment Provision]

A firm protested the Army's decision not to include an Economic Price Adjustment (EPA) provision covering the basic production quantity of antennas solicited under an invitation for bids (IFB) issued by the Army. The protester contended that: (1) where EPA coverage is properly applicable to the option quantity, as in this case, then EPA coverage should be equally applicable to the basic quantity; and (2) if coverage is not extended to the basic quantity, prior producers of antennas would receive a competitive advantage beyond that which normally accrues as a result of agency waiver of the first article requirement. The protester proposed that GAO direct the Army to extend EPA coverage to the basic quantity by amending the IFB to make the EPA applicable on the date of award for prior producers and on the date of final first article approval in the case of new producers. Army research for this procurement found that antenna prices and labor costs were relatively stable, thus enabling bidders on the procurement to reasonably "forward price" the basic quantity of antennas. GAO found that, in view of the relative market stability, there was no basis for questioning the Army's decision not to provide EPA coverage for the basic quantity. Accordingly, the protest was denied.