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B-290186 1 (2002-06-10)

handle is hein.gao/gaocrptaoez0001 and id is 1 raw text is: G A 0 Comptroller General Accountability * Integrity* Reliability of the United States United States General Accounting Office Washington, DC 20548 Decision Matter of: Ken Leahy Construction, Inc. File: B-290186 Date: June 10, 2002 Charles F. Adams, Esq. , Stoel Rives, for the protester. Charles R. Schrader, Esq., Jordan Schrader, for Elte, Inc., an intervenor. Timothy J. Binder, Esq., Federal Highway Administration, for the agency. Scott H. Riback, Esq., and John M. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Protest that intended awardee's bid is impermissibly unbalanced due to the inclusion of option requirement mobilization costs in price for the base requirement is denied; bid cannot be unbalanced where there would be no need for mobilization in performing the option work, thus eliminating factual predicate for finding of unbalancing. 2. Protest that agency improperly exercised option for additional road construction at the time of award even though agency had not yet secured all necessary rights-of- way is denied; the agency was not required to obtain all rights-of-way as a condition precedent to awarding the option requirement. DECISION Ken Leahy Construction, Inc. (KLC) protests the proposed award of a contract to Elte, Inc. under invitation for bids (IFB) No. DTFH70-01-B-00033, issued by the Department of Transportation (DOT), Federal Highway Administration, for the construction of a road in Siuslaw National Forest in Tillamook, Oregon. KLC maintains that Elte's bid is impermissibly unbalanced and should have been rejected. We deny the protest. The IFB called for bidders to offer fixed prices for various line items to perform base and option portions of the project. The base portion of the project requires construction of approximately 8.6 kilometers of roadway, while the option requires construction of approximately 3.7 additional kilometers. The record shows that the

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