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B-270448.3 1 (1996-05-01)

handle is hein.gao/gaocrptadyt0001 and id is 1 raw text is: 


Comptroller General
of the United States
Washington, D.C. 20548

Decision                                  DOCUMENT FOR PUBLIC RELEASE
                                         A protected decision was issued on the date below
                                         and was subject to a GAO Protective Order. This
                                         version has been redacted or approved by the parties
                                         involved for public release.


Matter of: Dynamic Science, Inc.

File:        B-270448.3

Date:        May 1, 1996

Peter T. Fagan, Esq., Bryan Cave, for the protester.
Laura K. Kennedy, Esq., Grace Bateman, Esq., and Trisa J. Thompson, Esq.,
Seyfarth, Shaw, Fairweather & Geraldson, for Kay & Associates, Inc., an intervenor.
Paul Fisher, Esq., and Russell P. Spindler, Esq., Department of the Navy, for the
agency.
David A. Ashen, Esq., and John M. Melody, Esq., Office of the General Counsel,
GAO, participated in the preparation of the decision.
DIGEST

Protest against agency determination to disregard proposed discount that would
render offer for indefinite delivery/indefinite quantity contract low is denied where
proposal with discount was mathematically unbalanced and agency had a
reasonable basis to doubt that award to protester would result in lowest overall
cost to the government in light of the inherent unreliability of its estimates.
DECISION

Dynamic Science, Inc. (DSI) protests the Naval Air Systems Command's (NAVAIR)
award of a contract to Kay & Associates, Inc., under request for proposals (RFP)
No. N68936-95-R-0190, for aircraft maintenance support services at the Naval Air
Warfare Center, China Lake, California. DSI argues that NAVAIR improperly
disregarded DSI's proposed pricing discount that rendered its proposal low and did
not conduct meaningful discussions with respect to the discount.

We deny the protest.

The solicitation contemplated the award of a time-and-materials, indefinite
delivery/indefinite quantity contract for a 3-year base period, with 2 option years, to
the low, technically acceptable offeror. The solicitation requested labor rates and
included estimated annual manhours per category for 20 specified labor
categories. It cautioned, however, that while the estimates represented the
government's best estimate of the requirements and were to be used in preparing

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