In today’s tight budgetary climate, performance-based acquisitions and similar techniques to maximize efficiency seem to be on the rise. Performance-based acquisitions can offer unique opportunities for contractors to develop innovative approaches to meet an agency’s needs while minimizing costs.
In a recent GAO bid protest decision, one offeror proposed fewer labor hours–and a different labor mix–than the awardee, resulting in a lower overall price. Nevertheless, without explanation, the procuring agency in question unilaterally raised the offeror’s labor hours to match the hours proposed by the awardee, resulting in a corresponding increase in evaluated price. The GAO was none too pleased with the agency’s action, sustaining the offeror’s bid protest.
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