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B-292981 1 (2004-01-09)

handle is hein.gao/gaocrptapit0001 and id is 1 raw text is: 




         G     A    0                                                 Comptroller General
             SIntegrity Reliability                                   of the United States
 ~ccountabthty Inert Rea iy
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: ACS State Healthcare, LLC; PharmaCare Government Services, Inc.;
                      PGBA, LLC; Humana Military Healthcare Services, Inc.

          File:       B-292981; B-292981.2; B-292981.3; B-292981.4; B-292981.5; B-292981.6;
                      B-292981.7; B-292981.8; B-292981.9 B-292981.10

          Date:       January 9, 2004

          Robert J. Sherry, Esq., Kathleen M. Paralusz, Esq., Dylan B. Carp, Esq., and Marc R.
          Baluda, Esq., Kirkpatrick & Lockhart, for ACS State Healthcare, LLC; Gerard R.
          Doyle, Esq., and Ron R. Hutchinson, Esq., Doyle & Bachman, for PharmaCare
          Government Services, Inc.; Kathleen E. Karelis, Esq., W. Jay Devecchio, Esq., Robert
          K. Huffman, Esq., Lisanne S. Cottington, Esq., Edward Jackson, Esq., Christine S.
          Ricci, Esq., Jeffrey C. Walker, Esq., and Alexa Zevitas, Esq., Miller & Chevalier, for
          PGBA, LLC; Thomas P. Barletta, Esq., Peter L. Wellington, Esq., Daniel C. Sauls, Esq.,
          Paul R. Hurst, Esq., Michael C. Drew, Esq., Paul I. Lieberman, Esq., and Dianne L.
          Herz, Esq., Steptoe & Johnson, and Alan C. Brown, Esq., Duane Morris, for Humana
          Military Healthcare Services, Inc., the protesters.
          Thomas B. Smith, Esq., Thomas M. Susman, Esq., Scott A. Shepard, Esq., and Ryan
          M. Malone, Esq., Ropes & Gray; and Clayton S. Marsh, Esq., and Janice C. Forsyth,
          Esq., for Express Scripts, Inc., the intervenor.
          Lynn T. Burleson, Esq., and Kenneth S. Lieb, Esq., TRICARE Management Activity,
          Department of the Defense, for the agency.
          Sharon L. Larkin, Esq., Guy R. Pietrovito, Esq., and James A. Spangenberg, Esq.,
          Office of the General Counsel, GAO, participated in the preparation of the decision.
          DIGEST

          1. In negotiated procurement under which the contractor will acquire
          pharmaceuticals for Department of Defense (DoD) using DoD funds, and where
          solicitation requests offerors to propose discount rates and dispensing fees for
          pharmaceuticals in addition to their fixed prices, and provides for evaluation of
          government's projected future costs for pharmaceuticals (Total Expected
          Government Cost (TEGC)) as a technical factor, agency reasonably assessed
          likelihood that offerors could provide pharmaceuticals at their proposed discount
          rates and dispensing fees; cost realism analysis of offerors' TEGCs was not required,
          where solicitation did not require such an analysis.

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