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B-191162 1 (1978-07-18)

handle is hein.gao/gaobadgfk0001 and id is 1 raw text is: - -MD .-, cTHE CCMPTRDLLER4 CNEtRAL DECISION .0 THE UNITEO STATUE 5 * M/A H INGTON , 0 . C. 2054 8 FILE: B-191162 DATE: July 18, 1978 MATTER OF: Metropolitan Contract Services, Inc. - Reconsideration DIGEST: Prior decision is affirmed upon request for reconsideration where GAO finds Board of Contract Appeals decision cited by protester not to be controlling on facts and 4-percent cost ceiling only applied to Employee Stock Ownership Plan costs and not to all labor costs. Metr-politan Contract Services, Inc. (Metropolitan), has requested reconsideration of our decision of June 14, 1978 (B-191162), in which we denied Metropolitan's pro- test of the proposed award of a contract by the National Aeronautics and Space Administration (NASA) under request for proposals (RFP) No. 1-101-5700.0120. - :pMetropolitan's request for reconsideration is grounided on the belief that our Office has misinter- preted the legal effect of a 4-percent cost ceiling which Metropolitan offered on the costs of its Employee Stock Ownership Plan (ESOP). The Service Contract Act wage determination applicable to this procurement contained as a fringe benefit an 8-percent ESOP. In our decision of June 14, 1978, we found that 'Metropolitan Tn its best and final offer had placed a firm, undonditional 4-percent cost ceiling on the ESOP costs NASA would have to reimburse Metropolitan under the conttact. However, we held that NASA could properly refuse to evaluate Metropolitan's proposal with the 4-per.tent ceiling. We agreed with NASA that: * * * as only Metropolitan of the three offerors had an ESOP, Metropolitan wac the only offeror in a position to manipulate the cost lcvel or contribution rate of The ESOP because, according to NASA's counsel, the Metropolitan

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