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B-222476.2 1 (1986-09-23)

handle is hein.gao/gaobadmly0001 and id is 1 raw text is: The Comptroler General of the United States Washington, D.C. 20548 Decision Matterof. Nebraska Aluminum Castings, Inc.--Reconsideration File: B-222476.2 Date: September 23, 1986 DIGEST Prior decision upholding an agency's rejection of a bid as materially unbalanced is affirmed as the General Accounting Office (GAO) sees no basis upon which to alter its conclusion that the protester's first article bid price was grossly inflated because of the firm's failure properly to allocate its equipment and tooling costs over the entire life of the contemplated contract. DECISION Nebraska Aluminum Castings, Inc. (NAC), requests reconsidera- tion of our decision in Nebraska Aluminum Castings, Inc., B-222476, June 24, 1986, 86-1 CPD 582. We concluded that the Department of the Army had properly rejected NAC's bid under invitation for bids (IFB) No. DAAKO1-85-B-B060 as materially unbalanced where the firm had charged a first article unit price which was grossly inflated. We reached this result in view of our decisions in Edgewater Machine & Fabricators, Inc., B-219828, Dec. 5, 1985, 65 Comp. Gen. , 85-2 CPD 1 630 and Riverport Industries, Inc., 64 Comp. Gen. 441 (1985), 85-1 CPD 1 364, aff'd upon reconsideration, B-218656.2, July 31, 1985, 85-2 CPD 1 108, wnich established the rule that a bidding scheme which grossly front-loads first article prices as a device to obtain unauthorized contract financing renders the bid materially unbalanced per se so as to require its rejection as nonresponsive. The r-ationale for this rule is that an award to a firm submitting greatly enhanced first article prices will provide funds to the firm early in the period of contract performance to which

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