GAO: Price Revisions Allowed In FPRs Unless Expressly Limited

According to the GAO, an offeror may revise its price as part of a final proposal revision, unless the procuring agency expressly limits the scope of proposal revisions.

In a recent bid protest decision, the GAO held that the agency properly accepted the awardee’s revised price because agency had not limited the scope of discussions so as to exclude price revisions.

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Limitation On Subcontracting Information Was Permissible “Clarification,” Says GAO

A procuring agency did not engage in impermissible discussions by allowing a small business to verify its intent to comply with the applicable limitation on subcontracting.

In a recent bid protest decision, the GAO held that the information regarding the small business’s compliance with the subcontracting limits was a permissible “clarification,” and did not require the agency to open discussions with all offerors in the competitive range.

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Discussions: “Significant Weakness” Terminology Not Required

In discussions, a procuring agency is not required to explicitly inform an offeror that its proposal contains a significant weakness, so long as the agency sufficiently identifies the area of concern.

In a recent bid protest decision, the GAO held that the agency had adequately informed the offeror of the agency’s concerns, even though the agency did not specifically identify those concerns as a “significant weakness.”

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Discussions: Second Bite At The Apple Not Required, Says GAO

An agency does not need to reopen discussions to allow an offeror to address a weakness first introduced in a revised proposal.

In a recent bid protest decision, the GAO held that an agency properly eliminated an offeror from the competitive range where the offeror, in a revised proposal submitted after discussions, introduced a new weakness.

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Agencies Need Not Mention High Price In Discussions, Says Federal Court

A procuring agency need not inform an offeror, as part of discussions, that the offeror’s price is higher than those of its competitors.  According to a recent ruling of the Court of Federal Claims, the only exception is if the offeror’s price is so high as to preclude award to the offeror–an “unreasonable” price, in FAR parlance.

The Court’s decision in Lyon Shipyard, Inc. v. The United States (Nov. 27, 2013) comes on the heels of a recent GAO decision reaching a similar result.

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GAO: Agency Need Not Raise High Costs In Discussions

In discussions, a procuring agency is not required to inform a prospective contractor that its costs are higher than those of its competitors, unless those costs are so high as to be unreasonable.

This important potential limitation on the scope of discussions was at issue in a recent GAO bid protest decision, in which the GAO held that an agency had not erred by failing to inform an offeror that its proposed costs were approximately $3 million higher than the awardee’s.

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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.

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