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B-281274.5 1 (2000-03-10)

handle is hein.gao/gaocrptakxm0001 and id is 1 raw text is: -e GeAtOa __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. Decision Matter of: The Futures Group International File: B-281274.5; B-281274.6; B-281274.7 Date: March 10, 2000 John S. Pachter, Esq., and Jonathan D. Shaffer, Esq., Smith, Pachter, McWhorter & D'Ambro sio, for the protester. Joseph C. Port, Jr., Esq., and Howard Stanislawski, Esq., Sidley & Austin, for Deloitte Touche Tohmatsu, an intervenor. A. Lindsey Crawford, Esq., and H. David Kotz, Esq., Agency for International Development, for the agency. Charles W. Morrow, Esq., and James A. Spangenberg, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. In response to a decision sustaining a protest and finding that the agency had failed to conduct a reasonable cost realism analysis of the awardee's proposed costs, the agency's corrective action--determining that the awardee's probable costs were the lowest and confirming award to that firm--was unreasonable, where the agency was advised by the Defense Contract Audit Agency that the awardee's proposed uncapped indirect rates were understated by an amount that would have affected the outcome of the competition and there was an apparent change in the magnitude of the contract work from that envisioned by the awardee's proposal. 2. Agency unreasonably discounted Defense Contract Audit Agency audit finding, based on the awardee's actual contract performance, that the awardee's proposed uncapped indirect rates were considerably understated for the first 2 years of the 5-year contract and found that the awardee's proposed rates should be judged only on the basis of the awardee's knowledge when it submitted its proposal; a cost realism analysis, even on reevaluation, should consider all information reasonably available as of the time of the evaluation.

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