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B-290224 1 (2002-05-28)

handle is hein.gao/gaocrptaofb0001 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: L. W. Matteson, Inc. File: B-290224 Date: May 28, 2002 Richard W. Miller, Esq., for the protester. Edward T. Goldstein, and Robert M. Anderson, Esq., U.S. Army Corps of Engineers, for the agency. David A. Ashen, Esq., and John M. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Under invitation for bids for dredging, agency reasonably rejected bid as unbalanced where bidder failed to include cost of preparing a site for disposal of dredged sediment in its unit price for dredging sediment, for which payment would be made over the term of the project, and instead included disposal site costs in its lump sum price for grubbing and clearing, a minor work item, such that the disposal site costs comprised 99 percent of the price for grubbing and clearing; rejection of the bid was proper based on the agency's reasonable determination that the unbalancing posed an unreasonable risk that bidder would receive substantial up-front payment upon completing the grubbing and clearing work, whether or not it had completed the site preparation work. DECISION L. W. Matteson, Inc. (LWM) protests the rejection of its bid as unbalanced under invitation for bids (IFB) No. DACW37-01-B-0012, issued by the U.S. Army Corps of Engineers for dredging work and placement of rockfill at backwater lakes in Pool 10 of the Upper Mississippi River, near Prairie du Chien, Wisconsin. LWM disputes the agency's determination that its bid was unbalanced. We deny the protest. The IFB sought fixed-price bids for dredging approximately 180,000 cubic meters of sediment from the lakes and safely transporting and disposing of the dredged material; clearing (felling, trimming and cutting of trees, as well as disposal of trees and other vegetation); grubbing (removal of stumps and large roots); stripping

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