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B-276162 1 (1997-05-02)

handle is hein.gao/gaocrptafxo0001 and id is 1 raw text is: oComptroller General of the United States Washington, D.C. 20548 Decision DOCUMENT FOR PUBLIC RELEASE A protected decision was issued on the date below and was subject to a GAO Protective Order. This version has been redacted or approved by the parties involved for public release. Matter of: Alliant Techsystems, Inc. File: B-276162; B-276162.2; B-276162.3 Date: May 2, 1997 John S. Pachter, Esq., Jonathan D. Shaffer, Esq., Eun K (Julie) Chung, Esq., and Dorothy E. Terrell, Esq., Smith, Pachter, McWhorter & D'Ambrosio, P.L.C., for the protester. Thomas J. Madden, Esq., Jerome S. Gabig, Jr., Esq., Fernand A. Lavallee, Esq., and John J. Pavlick, Jr., Esq., Venable, Baetjer, Howard & Civiletti, and Scott W. MacKay, Esq., in-house counsel, for Lockheed Martin Corporation, an intervenor. Gregory H. Petkoff, Esq., and John E. Lariccia, Esq., Department of the Air Force, for the agency. Paul E. Jordan, Esq., and Paul Lieberman, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. In assessing proposals for multi-year production contract which contemplates technology inserts over course of performance, agency evaluation of awardee's proposed insert component which is not yet developed, including review of proposal, technical briefings, and parallel development by other manufacturers, is unobjectionable where agency reasonably concludes that component ultimately will be successfully produced. Because agency has right to reject component from introduction as technology insert if it does not meet all specifications, agency reasonably determined that only potential impact of insert component on procurement will be to cost and schedule and thus, properly determined to evaluate component under affordability evaluation factor. 2. In procurement with cost and fixed-price elements, where offerors are committed to meet or better proposed system-life average unit prices (AUP) or face substantial penalties, agency's affordability evaluation is reasonable where it includes appropriate assessment of realism, reasonableness, and completeness of proposed costs which underlie AUP in accordance with evaluation criteria. 3. Award decision is unobjectionable where protester's slight advantage in instant contract cost and lower prices through earlier phases of procurement life is outweighed by selected offeror's technical advantages and significantly lower proposed prices over life of procurement.

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