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B-184098 1 (1976-03-02)

handle is hein.gao/gaobaddfb0001 and id is 1 raw text is: 

                    D.EII FR
                             THE   COMPTROLLER GENERAL
DECISION 1\        (     OF THE UNITED  STATES
                           / WASHINGTON, D. C. 20548




FILE:  B-184098                     DATE:     March 2, 1976

MATTER OF: Engineered Systems, Inc.                                3


DIGEST.

1.  GAO Bid Protest Procedures are intended to require protesters
    to raise issues in timely manner. Where  contracting agency
    first raises certain issue in report to GAO on protest, no
    reason is seen why issue should not be for consideration on
    merits, notwithstanding party's allegation that it is untimely.

2.  Where RFP specifies directed source subcontractors, Government
    takes responsibility for performance difficulties occasioned by
    subcontractors' performance.  Offeror whose proposal discloses
    potential difficulties with conditions imposed in subcontractor
    proposal is placed in disadvantageous competitive position where
    second offeror's proposal--which does not disclose any subcontrac-
    tor conditions---S considered acceptable by Government. Netwith-
    standing issue raised concerning late modification to first offer-
    or's proposal which removed subcontractor condition, recommendation
    for corrective action in procurement is inappropriate in any event.
    Instead, Government should review need for directed source subcon-
    tractors and insure equality of competition among offerors in
    future procurements.

3.  Allegations of unfairness by agency in conduct of discussions
    with offerors are without merit where (1) impropriety on part
    of successful offeror in obtaining revised quotation from di-
    rected source subcontractor is not shown; and (2) no evidence
    is presented to show that protester's proposal data was improp-
    erly disclosed.  Contracting officer states additional cost
    data was sought from protester to determine whether mistake
    in its proposal existed, not for.release to other parties; and
    fact that successful offeror reduced price in best and final
    offer does not prove that protester's price was leaked.

4.  Concept of responsiveness is not directly applicable to
    negotiated procurement, and fact that initial proposal con-
    tains unacceptable condition does not mean rejection of
    proposal for this reason would be justified.


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