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![handle is hein.gao/gaocrptasnz0001 and id is 1 raw text is:
A G A O Comptroller General
. Accountability * Integrity * Reliability of the United States
United States Government Accountability 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: Metro Machine Corporation
File: B-297879.2
Date: May 3, 2006
Michael R. Katchmark, Esq., Gary A. Bryant, Esq., Brett A. Spain, Esq., and
Michael C. Laurence, Esq., Willcox & Savage P.C., for the protester.
Robert M. Tata, Esq., Carl D. Gray, Esq., and Kevin J. Cosgrove, Esq., Hunton &
Williams LLP, for Earl Industries, LLC, an intervenor.
Rhonda L. Russ, Esq., Naval Sea Systems Command, for the agency.
Edward Goldstein, Esq., and Christine S. Melody, Esq., Office of the General
Counsel, GAO, participated in the preparation of the decision.
DIGEST
Agency's cost realism evaluation of awardee's proposal was unreasonable where the
awardee proposed to perform the solicitation requirements under a teaming
arrangement whereby its proposed team members would perform almost [deleted]
of the production work under the contract, but the agency failed to consider the
impact of the team members' higher rates in determining the awardee's probable
cost of performance under the contract.
DECISION
Metro Machine Corporation protests the award of a contract to Earl Industries, LLC
under request for proposals (RFP) No. N00024-05-R-4401, issued by the Department
of the Navy, Naval Sea Systems Command (NAVSEA), for maintenance and
modernization work on Dock Landing and Amphibious Transport Dock class ships
(i.e., LSD and LPD class ships) homeported in Norfolk, Virginia. Metro alleges that
the agency's cost evaluation of Earl's proposal was improper and that the source
selection decision was flawed.'
We sustain the protest.
1 Metro withdrew its allegation that the Navy's award decision failed to properly
account for industrial mobilization considerations. See Protester's Comments at 46.](ViewImageLocal?handle=hein.gao/gaocrptasnz0001&div=1&collection=&method=preview&ext=.png&size=3)