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B-311245.2 1 (2008-05-16)

handle is hein.gao/gaocrptavzo0001 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: MCT JV File: B-311245.2; B-311245.4 Date: May 16, 2008 Terence Murphy, Esq., Patrick H. O'Donnell, Esq., and J. Bradley Reaves, Esq., Kaufman & Canoles, P.C., for the protester. Michael Katchmark, Esq., Michael C. Laurence, Esq., Gary A. Bryant, Esq., and Brett A. Spain, Esq., Willcox & Savage, P.C., for Metro Machine Corp., the 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 1. Where, due to concerns about their negative effect on contract performance, the solicitation instructed offerors not to propose unrealistically low costs, and the awardee capped its indirect rates at levels that the agency concluded were significantly below its costs, protest is sustained because the agency failed to consider performance risk associated with the awardee's decision to cap its indirect rates. 2. Discussions with protester regarding allocation of labor hours in its cost proposal were not meaningful where the discussions did not communicate that the agency was concerned about the protester's inconsistent allocation of labor hours between its technical proposal and cost proposal. DECISION MCT JV protests the award of a contract to Metro Machine Corp. under request for proposals No. N00024-07-R-4006, issued by the Department of the Navy, Naval Sea Systems Command (NAVSEA), for maintenance and modernization work on LSD 41/49 Class ships (Navy amphibious assault ships, commonly referred to as Dock Landing Ships) homeported in Norfolk, VA. MCT JV challenges NAVSEA's cost realism and technical evaluations of its own proposal and of the proposal submitted by Metro. We sustain the protest.

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