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B-298694 1 (2006-11-16)

handle is hein.gao/gaocrptasrn0001 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: Kellogg Brown & Root Services, Inc. File: B-298694; B-298694.2; B-298694.3 Date: November 16, 2006 James J. McCullough, Esq., Steven A. Alerding, Esq., and Deneen J. Melander, Esq., Fried, Frank, Harris, Shriver & Jacobson LLP, for the protester. Richard L. Moorhouse, Esq., David T. Hickey, Esq., and Dorn C. McGrath III, Esq., Greenberg Traurig LLP, for Atlantic Contingency Constructors, LLC; William A. Roberts III, Esq., and Richard B. O'Keeffe Jr., Esq., Wiley Rein & Fielding LLP, for Fluor International, Inc.; and J. Alex Ward, Esq., Edward Jackson, Esq., and Kristen G. Schulz, Esq., Jenner & Block LLP, for URS-JAP, LLC, the intervenors. Richard Welsh, Esq., Naval Facilities Engineering Command, for the agency. Sharon L. Larkin, Esq., and James A. Spangenberg, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Agency did not perform a reasonable cost realism evaluation when it deleted a certain element of cost from awardee's proposed indirect costs because other offerors accounted for this element as a direct cost; this evaluation did not result in a reasonable assessment of the probable cost of performing the contract associated with the awardee's proposal, given that the adjustment was inconsistent with Cost Accounting Standards 401 and 402 and the firm's cost accounting practices, to which the firm was obligated to adhere in performing the contract. 2. Protest of evaluation of protester's proposed contingency plan is sustained where the protester provided detailed arguments why the evaluation was unreasonable, which were consistent with the record, and the agency did not explain why the evaluation was reasonable in light of those arguments. DECISION Kellogg Brown & Root Services, Inc. (KBR) protests the award by the Department of the Navy of three global contingency construction contracts under request for proposals (RFP) No. N62470-06-R-6002 to Atlantic Contingency Constructors, LLC (ACC), Fluor International, Inc. (Fluor), and URS-JAP, LLC (URS). KBR contends that the agency misevaluated proposals under technical and cost factors.

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