Agency Reasonably Accepted Awardee’s 91% Price Premium, GAO Says

When it comes to “best value” evaluations, agencies ordinarily have broad discretion to accept higher-rated, higher-priced proposals.

How broad is that discretion? Well, in one recent case, the GAO held that an agency reasonably accepted the awardee’s higher-rated proposal, despite a whopping 91% price premium.

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Contractor’s Creative Staffing Proposal Leads to Elimination from Competition

In the competitive federal marketplace, businesses are always looking for ways to make their proposals more competitive. With millions of dollars at stake, it is no surprise that some competitors develop clever approaches to give their proposal a competitive edge.

As one competitor recently discovered, however, there is a point where an offer can get too clever, which may result in proposal elimination. Especially when an agency views the clever approach as violating a solicitation staffing requirement.

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It’s Not Up to Agency to Clarify Layout and Printing Errors in Proposals, Says GAO

It is well understood that offerors must submit proposals that meet the procuring agency’s requirements, including any page limitations set by the solicitation. But what if an offeror’s proposal contains an obvious layout and printing error that inadvertently puts required information outside the established page limits? Does the agency have a duty to seek clarifications or allow corrections?

GAO says no.

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Agency Should Have Investigated Proposal Contradictions, Says GAO

Preparing a proposal for a federal procurement is an involved process. On top of the extensive drafting and estimating work, proposals often require supporting documentation like licenses or certifications. But what happens when a proposal and its supporting documentation contradict one another?

As one contractor learned the hard way, this contradiction can have disastrous consequences.

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GAO: Proposal Strengths Must be Based on Solicitation Criteria, Not Merely Benefit to Government

Agencies often find unanticipated, innovative content in offerors’ proposals. And unsurprisingly, those proposals are often the ones selected for award. But a recent GAO decision reminds us that all strengths an agency assigns must be supported by the stated evaluation criteria.

In other words, the solicitation must thoroughly inform offerors of these evaluation criteria, and the agency must equally evaluate offerors under them. An offeror’s proposal should not get extra credit for proposing things that are not anticipated by or logically encompassed in the solicitation.

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GAO Sustains Protest after Awardee Credited with Strengths Not Present in its Proposal

Strong working relationships between contractors and contracting officers are a significant asset. For example, the Customs and Border Patrol recently relied heavily on its experience working with the incumbent contractor to “infer” proposed technical approaches and award corresponding strengths. Unfortunately, when this award was subsequently protested, GAO did not agree with the Border Patrol’s inferential technique.

As GAO explained, a reviewing agency may not credit a bid with technical strengths that are not present within the proposal.

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GAO Won’t Let Agencies Sweep Solicitation Non-Compliance Under the Rug

An agency can’t award an offeror a contract if its proposal doesn’t conform with a material solicitation requirement. So if, for example, the solicitation requires certain types of documentation showing an offeror’s right to use property, but the awardee offers something different, GAO will likely sustain a protest.

Put differently, GAO won’t let an agency relax key solicitation requirements even though the agency might, during evaluation, accept the non-complying proposal.

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