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B-298912 1 (2007-01-05)

handle is hein.gao/gaocrptaubz0001 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: Magellan Health Services File: B-298912 Date: January 5, 2007 Howard J. Stanislawski, Esq., Patrick K. O'Keefe, Esq., Joel Singer, Esq., and Patrick F. Linehan, Esq., Sidley Austin LLP, for the protester. Joseph J. Petrillo, Esq., and Karen D. Powell, Esq., Petrillo & Powell, P.L.L.C.; and John S. Pachter, Esq., Jonathan D. Shaffer, Esq., Stephanie D. Capps, Esq., and Mary Pat Gregory, Esq., Smith Pachter McWhorter PLC, for Ceridian Corporation, an intervenor. Douglas Kornreich, Esq., Department of Health and Human Services, for the agency. Louis A. Chiarella, Esq., and Christine S. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Protest challenging agency's evaluation of technical proposals is denied where the record establishes that the evaluation was reasonable and consistent with the evaluation criteria. 2. Agency's cost realism evaluation of awardee's proposal was unreasonable where agency failed to take into account cost adjustments made by its own cost analyst to awardee's proposal, and instead utilized awardee's proposed costs as the basis for its source selection decision. 3. Agency's cost realism evaluation of awardee's proposal was improper where, although knowing that awardee had proposed to recruit the incumbent workforce and match all existing salaries but had also failed to propose direct labor rates consistent with existing salaries, agency failed to adjust awardee's proposed labor rates as part of its cost realism evaluation. 4. Protest challenging adequacy of agency's best value source selection decision is sustained where there is insufficient information and analysis in the record, which includes both a contemporaneous source selection document and a post-protest statement, to determine that the selection official's key conclusion of technical equality, notwithstanding the higher technical rating assigned to the protester's proposal, was reasonable.

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