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B-274012 1 (1996-10-24)

handle is hein.gao/gaocrptaekm0001 and id is 1 raw text is: 


Comptroller General
of the United States
Washington, D.C. 20548

Decision



Matter of: Grunley Schlosser Joint Venture

File:       B-274012

Date:        October 24, 1996

Herman M. Braude, Esq., and Samuel M. Morrison, Jr., Esq., Braude & Margulies, for
the protester.
Douglas L. Patin, Esq., and Robert Symon, Esq., Spriggs & Hollingsworth, for Morse
Diesel International, Inc., an intervenor.
Emily C. Hewitt, Esq., Gary F. Davis, Esq., and Kathleen M. McCartney, Esq.,
General Services Administration, for the agency.
Jacqueline Maeder, Esq., and Paul Lieberman, Esq., Office of the General Counsel,
GAO, participated in the preparation of the decision.
DIGEST

1. Low bid under an invitation for bids calling for a base bid and two options is not
materially unbalanced where there is no basis to conclude that the bid contains
significantly overstated prices for the base bid such that it could be considered
mathematically unbalanced.

2. Base bid which is less than, two times greater, than the government's estimate or
the protester's next low bid is not so front-loaded as to be tantamount to an
improper advance payment that would require rejection of the bid.
DECISION

Grunley Schlosser Joint Venture protests the award of a contract to Morse Diesel
International, Inc. under invitation for bids (IFB) No. GS-11P-96-MKC-0015, issued
by the General Services Administration (GSA) for modernization of the Interstate
Commerce Commission (ICC)/U.S. Customs Service (USCS) buildings complex in
Washington, D.C. Grunley Schlosser argues that Morse Diesel's bid should have
been rejected as unbalanced.

We deny the protest.

The IFB, issued May 16, 1996, contemplated the award of a firm, fixed-price
contract for the modernization of the ICC building, the USCS building and a
connecting wing building. The renovation is to proceed in several phases while the
buildings remain partially occupied. Bidders were required to provide a total price
for a base bid, option 1 and option 2. The base bid includes the replacement of the


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