Protester Missed Its Chance to Protest Corrective Action Scope, Says GAO

As we’ve previously discussed here at SmallGovCon, a substantial number of GAO bid protests are resolved through voluntary corrective action. While corrective action is typically a desirable outcome for a bid protest, it by no means affords a protester the opportunity to relax.

Indeed, as one offeror recently discovered, the failure to diligently protest the scope of a corrective action barred raising certain challenges later on.

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It’s Tough to Challenge a Corrective Action

For a protester, a corrective action from the agency is a win. It gives the protester another bite at the apple to possibly win a contract award. But for the initial awardee, a corrective action has some unfortunate consequences, the dreaded double whammy.

Besides the obvious–losing the award–the former awardee’s price is usually revealed to the other competitors. Could this give the competitors a leg up when proposals are resubmitted as part of the corrective action? Yes. Does this amount to a flaw in the corrective action such that GAO will sustain a protest over it? Not likely.

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Agency Bungles Proposal Evaluations; GAO Sustains Protest and Awards Costs

Bid protests are an important part of the federal government’s procurement system. Why? Because sometimes agencies really get the evaluation wrong. They read non-existent requirements into the solicitation; give credit where none is due; and adjust an offeror’s price without forewarning.

Thankfully, in those cases, we have GAO to make course corrections.

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Protester Argues the Agency Played “The Price Is Right” During Discussions

Negotiating with the federal government regarding pricing can sometimes feel like trying to win an RV from Bob Barker. Such was the experience of one protester. The government recommended a price increase during discussions and the contractor raised its price. The price increase, however, ultimately cost the offeror the award.

The agency’s conduct was subsequently protested before GAO, but GAO was not receptive.

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Federal Supply Schedule Acquisitions Require Price Comparisons to Determine Lowest Overall Cost, Says GAO

In a recent protest, GAO examined the rules for price evaluation and source selection methodology required under the Federal Supply Schedule (FSS) Program. At a minimum, an agency must perform price comparisons to evaluate what vendor will be lowest cost along with any additional features and benefits to the government. Because the FSS solicitation at issue failed to include proper price evaluation terms, GAO sustained a challenge to those terms.

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GAO: If You Weren’t Prejudiced, We Won’t Sustain Your Protest

Much like schoolyard basketball, bid protests feature a “no harm, no foul” rule: unless an offeror can credibly allege that it was prejudiced by a flawed evaluation, GAO won’t sustain a protest.

Establishing prejudice can be tricky, depending on the type of evaluation at issue. Under a lowest-price technically acceptable award, a protester generally must show that it was next-in-line for the award (that is, it was technically acceptable and had the next-lowest price, after the awardee). Best value awards, on the other hand, are a bit more flexible: usually, the protester must establish that the evaluation flaw adversely affected its competitive standing.

A recent GAO decision, however, highlights that these two means of establishing prejudice aren’t always distinct.

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