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Two firms protested the Army Corps of Engineers' rejection of their bids for campground construction, contending that the: (1) evaluation criteria were defective, since they permitted award to other than the low bidders; and (2) government cost estimate was unreasonably low. GAO held that the: (1) Army improperly awarded the contract, since it based its evaluation on other than the lowest cost; and (2) government cost estimate was reasonable. Accordingly, the protests were sustained in part and denied in part, and GAO recommended that the Corps award the contract to the protesters and reimburse them for their bid and protest preparation costs.

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