[Protests of Navy Contract Awards for Fleet Support Services]

A firm protested two Navy contract awards for fleet support services, contending that the: (1) Navy should not have rejected its bids, since they were low; (2) solicitation allowed bidders to propose conformed labor classifications; and (3) Navy failed to conduct discussions. GAO held that: (1) although the issue was under litigation before a federal court, it would consider the protests, since the court stayed proceedings pending issuance of a decision; (2) the Navy properly rejected the protester's bids as unacceptable, since they contained a labor category that the Department of Labor had not conformed; and (3) since the protester's basic bid was not low and its alternate bids were not acceptable, it was not necessary for the Navy to conduct discussions. Accordingly, the protests were denied.