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B-277674 1 (1997-11-10)

handle is hein.gao/gaocrptagdc0001 and id is 1 raw text is: oComptroller General of the United States Washington, D.C. 20548 Decision DOCUMENT FOR PUBLIC RELEASE The decision issued on the date below was subject to a I GAO Protective Order. This redacted version has been approved for public release. Matter of: The Arora Group, hie. File: B-277674 Date: November 10, 1997 Edward J. Tolchin, Esq., Fettmann, Tolchin & Majors, P.C., for the protester. John R. Tolle, Esq., and Monica C. Parchment, Esq., Barton, Mountain & Tolle, for Saratoga Medical Center, Inc., an intervenor. Douglas P. Larsen, Esq., and John R. Osing, Jr., Esq., Department of the Navy, for the agency. Linda C. Glass, Esq., and Paul I. Lieberman, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Agency unreasonably concluded protester's fixed-price offer lacked price realism because of the protester's failure to propose salary escalation and therefore its perceived inability to retain employees, where protester proposed to use part of general and administrative (G&A) budget for employee bonuses; agency's conclusion that G&A budget was inadequate to retain employees was premised on agency's miscalculation of amount of that budget. DECISION The Arora Group, Inc. protests the award of a fixed-price contract to Saratoga Medical Center, Inc. under request for proposals (RFP) No. N62645-96-R-0032, issued by the Naval Medical Logistics Command for the services of 10 pharmacists for the National Naval Medical Center, Bethesda, Maryland. Arora principally contends that the agency erred in its price realism analysis of Arora's proposal and deviated from the RFP's source selection criteria. We sustain the protest. The RFP, issued on August 22, 1996, as a competitive 8(a) set-aside under the Small Business Act, 15 U.S.C. § 637(a) (1994), sought offers to provide the services of 10 full-time pharmacists and 5 optional pharmacists for a base period with four option periods, for a total possible performance term of 5 years. The RFP provided that award would be made to the responsible offeror whose proposal, conforming to the specified minimum healthcare worker qualifications, offered the government the best combination of past performance and price. To be considered for contract

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