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B-206449.3,B-206449.4 1 (1983-04-05)

handle is hein.gao/gaobadkzl0001 and id is 1 raw text is: uo ~ THE COMPTROLLER GENERAL 1ECISION . OF THE UNITED STATES q. WASHINGTON. 0. C. 20548 FILE: B-206449.3 DATE: April 5, 1983 MATTER OFP-206449. 4 Crown Laundry and Dry Cleaners, Inc.; Solon Automated Services Inc. - DI1GEST: Reconsideration Prior decision, which sustained a protest on the basis that the awardee's bid was mathe- matically and materially unbalanced, but did not recommend that the contracting agency terminate the contract or refrain from exer- cising options, is affirmed where it has not been established that the decision was based on an error of law or fact. Crown Laundry and Dry Cleaners, Inc. and Solon Auto- mated Services, Inc. request that we reconsider our deci- sion in Solon Automated Services Inc., B-206449.2, December 20, 1982, 82-2 CPD 548. In that decision, we sus- tained a protest by Solon against the award of a contract to Crown for the rental and maintenance of washers and dryers at Fort Bragg, North Carolina. The contract is for a base period of 1 year and 2 option years. Crown was awarded a contract based on a slightly lower 3-year total price than offered by Solon. We determined Crown's bid to be mathematically unbalanced because Crown's base year bid price was greater than its reasonable first year costs and its option price was lower than its likely option year costs. We found Crown's bid to be materially unbalanced because the Government would not realize the 1 percent price advantage represented by Crown's bid until the last month of the second option period and, consequently, a reasonable doubt existed that Crown's bid would ultimately provide the lowest cost to the Government. Since Crown's bid was mathematically and materially unbalanced, the award was improper. We did not recommend that the contract be terminated, however, because by the time the Army could have done so, it would have paid Crown 50 percent of the total cost it would incur for the entire 3-year period, affording Crown a windfall from its unbalanced bid. Rather, under the unusual circumstances presented, we recommended that the Army exercise both options, if other- wise proper.

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