[Protest of Contract Award Alleging Below-Cost Bid by Awardee]

A firm protested the award of an Air Force contract. The protester contended that the awardee could not make a profit at the prices quoted in the invitation for bids (IFB) and that the Government cannot award a contract to the low bidder when it is obvious that the low bidder will lose money on the contract. The protester also alleged that the awardee did not meet the quality assurance standard contained in the IFB and, therefore, could not guarantee the quality of its product nor deliver it in the required timeframe. Finally, the protester questioned the agency's alleged failure to send a technical support group representative to the preaward survey. GAO has consistently held that the submission of a below-cost bid does not constitute a legal basis for challenging a contract award. The allegation dealing with quality assurance is a matter of responsibility, and GAO does not review such determinations except under certain circumstances, none of which was present. With regard to the preaward survey, GAO stated that the nature and extent of a preaward survey needed to assure a contracting officer that a firm will meet its obligations is a matter for the contracting officer's judgment. Accordingly, the protest was dismissed.