Price Reasonableness vs. Price Realism: The GAO Explains The Difference

Price reasonableness and price realism are both benchmarks against which a procuring agency may evaluate an offeror’s price, but price reasonableness and price realism–though they are often confused for one another–are not the same thing.

As the GAO explained in a recent bid protest decision, one of the terms involves consideration of whether an offeror’s price is too low, whereas the other evaluates whether the price is too high.  The distinction is particularly important for fixed-price procurements, in which the question of whether pricing is too low is not one the procuring agency is always required to ask.

Continue reading

GAO: Agency Discussions Need Not Include “New” Weakness

In a recent bid protest decision, the GAO held that an agency did not fail to provide an offeror with meaningful discussions about an evaluated weakness in the offeror’s staffing approach because the aspect of the staffing plan deemed to be a weakness was introduced in the offeror’s final proposal revision, or FPR.

Continue reading

HUBZone Certification Not Required At Solicitation Issuance, Says GAO

A Treasury Department solicitation did not require contractors to be certified HUBZone participants at the time the solicitation was issued, despite language in the solicitation arguably requiring just that in order to receive a high rating for socioeconomic status.

In a recent GAO bid protest decision, the GAO held that the agency properly interpreted the solicitation to require HUBZone certification at the time proposals were due, not the time the solicitation was issued.  The GAO’s ruling comports with the HUBZone program regulations, which do not require contractors to be certified at the time a solicitation is issued in order to be considered HUBZone participants for purposes of that solicitation.

Continue reading

GAO: Proposal Deadline Need Not Be Extended If Solicitation Amended

The GAO has held that the deadline for offerors to submit proposals need not be extended when an agency issues an amendment to the solicitation, unless the failure to extend adversely affects competition or was a deliberate attempt to exclude an offeror.

In a recent GAO bid protest decision, the GAO rejected the protester’s contention that the agency should have extended the proposal deadline to allow offerors more time to respond to two amendments–which were issued three days and one day, respectively, before the proposal due date.

Continue reading

GAO: Agency Should Have Considered Experience Of Contractor’s Personnel

A procuring agency’s assignment of a “significant weakness” on the basis of a contractor’s supposed lack of experience was unreasonable because the agency did not consider the experience of the contractor’s personnel.

In BAE Systems Technology Solutions & Services, Inc., B-405664, B-405664.2 (Dec. 12, 2011), the GAO sustained a bid protest, holding in part that the agency erred by overlooking the experience of the protester’s personnel.

Continue reading

GAO: Agency Failed To Identify Proposal Weaknesses In Discussions

A procuring agency failed to conduct meaningful discussions where it merely asked a contractor to clarify its understanding of a certain portion of the solicitation, rather than informing the contractor of specific proposal weaknesses relating to that same portion of the solicitation.

The GAO’s bid protest decision in Nexant, Inc., B-407708, B-407708.2 (Jan. 30, 2013) demonstrates that when an agency has identified specific weaknesses in a contractor’s proposal, discussions must be sufficiently detailed to enable the contractor to understand the agency’s concern and have the opportunity to improve its proposal.

Continue reading

VA Refuses To Issue Set-Aside Based On Prospective Offerors’ Experience, Resources

In a troubling case, the VA recently refused to issue a small business set-aside because responses to a Request for Information indicated that prospective small business offerors lacked similar experience with the VA, and did not currently have available the personnel, equipment and facilities necessary to perform the contract.

The GAO, ignoring the recommendation of the SBA, affirmed the VA’s decision to forego a small business set-aside.

Continue reading