Agency Must Consider Price Before Eliminating a Contractor from Competitive Range, GAO Confirms

In theory, best value procurements provide the government with an opportunity to select a higher priced proposal where the higher price is justified by the technical superiority of the proposal. In practice, though, the technical factors of a best value procurement can seemingly relegate price to a secondary consideration. In a recent decision, however, GAO confirmed that price is an essential evaluation consideration in any best-value decision.

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Agency Pays 72.6% Price Premium; GAO Upholds Award

I often caution would-be bid protesters that when it comes to “best value” procurements, the GAO gives agencies wide discretion to pay a price premium for a proposal evaluated as superior.

Case in point: a recent bid protest decision in which the GAO upheld the procuring agency’s decision to pay a whopping 72.6% price premium.

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