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B-189996 1 (1978-08-17)

handle is hein.gao/gaobadghm0001 and id is 1 raw text is: A~4' THE COMPTR ~OtLEFI (3?N2AL it: DrCISION0 F T H El U N i o 3S T ATES13 Y WASHINGTON, D.C. atJe4 FILE: OATE: Augist 17, 1978 B-109996 iis17p98 MATTER OF: Nordam, Division of R.H , ieqfried, Inc. DIGEST: 1. Procuring activity's use of contract price for 1972 procurement of identicol items of equipment as basis for comparison with bid of protester is proper to determine unreason- ableness of bid price since such a determina- tion may bb based on past procurement history. No question raised as to activity's failure to consider entire range of bids in 1972 procure- ment because even protester furnished subsequent calculations using 1972 contract price. 2# While GAO recognizes inexact'nature of Government estimates and price comparisons, protester's cost estimates using rough 12-percent inflation rate are unacceptable where more precise analysis using Department of Labor's wholesale price index is available. .i 3. Protester's bid.for each semitrailer exceeded Government's price estimate by approximately 9 percent. In vhew of factthat GAO has upheld rejection of bids and readvertisement where lowest eligible bid exceeded Government estimate by as little as 7.2 percent, dcision to cancel protested portion ot procurement ras reasonable. 4. Possible result of recompetition, the fact that it is very unlikely Gcvernment will receive lower bids on recompetition, has no bearing on propriety of original cancellation due to price unreasonable- ness. e 9

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