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B-280048.4 1 (1999-05-19)

handle is hein.gao/gaocrptajeo0001 and id is 1 raw text is: 



                   -e GeAtOa
 E                                                                Comptroller General
                                                                  of the United States
United States General Accounting Office            DOCUMENT FOR PUBLIC RELEASE
Washington, DC 20548
                                                  The decision issued on the date below was subject to a
                                                  GAO Protective Order. This redacted version has been
                                                  approved for public release.

         D  e c i s i o n                        ----------------------------------------------------------------------------------------------------------------------------


         Matter of: Pulau Electronics Corporation

         File:       B-280048.4; B-280048.5; B-280048.6; B-280048.7

         Date:       May 19, 1999

         Thomas P. Humphrey, Esq., Kenneth M. Bruntel, Esq., John E. McCarthy, Jr., Esq.,
         Joseph W.C. Warren, Esq., and Tejpal Singh Chawla, Esq., Crowell & Moring, for the
         protester.
         Donald J. Walsh, Esq., Scaldara & Potler, for AAlEngineering Support, Inc., an
         intervenor.
         John A. Evans, Esq., Sharon Hershkowitz, Esq., and Andrea E. Brotherton, Esq.,
         Department of the Navy, for the agency.
         Christine Davis, Esq., and James Spangenberg, Esq., Office of the General Counsel,
         GAO, participated in the preparation of the decision.
         DIGEST

         1. Agency unreasonably determined that awardee corrected during discussions a
         significant staffing shortfall in support of a major solicitation requirement, where the
         agency, both in its award selection and in defense of this protest, relied upon
         proposal revisions that, in fact, addressed an unrelated staffing area in the awardee's
         proposal and did not consider whether the uncorrected staffing shortfall-which
         alone accounted for the awardee's decisive price advantage-would adversely affect
         the awardee's ability to meet its requirements.

         2. In a solicitation for a fixed-price-award-fee contract with some unevaluated time
         and materials (T&M) contract line items (CLIN), a solicitation requirement that
         offerors use common labor rates in developing their prices for the evaluated
         fixed-price CLINs and the unevaluated T&M CLINs did not prohibit offerors from
         proposing discounts to the fixed-price CLINs.

         DECISION

         Pulau Electronics Corporation protests the award of a contract to AAI/Engineering
         Support, Inc. under request for proposals (RFP) No. N61339-97-R-0011, issued by the
         Department of the Navy on behalf of the Department of the Army for life cycle

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