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B-281995 1 (1999-05-13)

handle is hein.gao/gaocrptajin0001 and id is 1 raw text is: Comptroller General of the United States Washington, D.C. 20548 Decision Matter of: Concepts Building Systems, Inc. File: B-281995 Date: May 13, 1999 Ralph W. Spurlock for the protester. George Barclay, Esq., and Jerry Ann Foster, Esq., General Services Administration, for the agency. Christina Sklarew, Esq., and Paul Lieberman, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Agency rejection of offer under multiple-award Federal Supply Schedule solicitation on the basis that the offered prices were not reasonable is unobjectionable where the offeror increased its markup of supplier prices after negotiations were concluded and failed to provide any explanation to support the reasonableness of the increase, which called for a markup almost twice as high as the rate established by the contracting officer as a negotiation objective. 2. Contracting Officer reasonably rejected unacceptable offer without engaging in further negotiations where agency had engaged in discussions with offeror for more than a year in an attempt to bring offer into compliance. DECISION Concepts Building Systems, Inc. protests the rejection of its offer submitted in response to request for proposals (RFP) No. 7FXG-P5-97-5406-B, issued by the General Services Administration (GSA) for multiple-award Federal Supply Schedule (FSS) contracts to supply and install prefabricated storage buildings and outdoor storage structures. GSA rejected Concepts' offer because the agency determined that Concepts had failed to establish the reasonableness of its offered prices. We deny the protest. The RFP, issued on May 21, 1997, contemplated multiple awards of indefinite-delivery, indefinite-quantity contracts at firm, fixed prices with an economic price adjustment, under GSA's FSS program. This program, as described in Subpart 8.4 of the Federal Acquisition Regulation (FAR), provides federal agencies

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