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B-278050 1 (1997-11-25)

handle is hein.gao/gaocrptagej0001 and id is 1 raw text is: oComptroller General of the United States Washington, D.C. 20548 Decision Matter of: Technology Services International, Inc. File: B-278050 Date: November 25, 1997 Nancy 0. Dix, Esq., Gray Cary Ware & Freidenrich, for the protester. Gregory H. Petkoff, Esq., Department of the Air Force, for the agency. John L. Formica, Esq., and Guy R. Pietrovito, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Apparent low bid was properly rejected as materially unbalanced where the bid, submitted in response to a solicitation providing for the award of a contract for telephone operator services for a base year with 4 option years, included a front-loaded base period price and did not become low until the third of 4 option years, thereby raising a reasonable doubt that the bid would result in the lowest ultimate cost to the government. DECISION Technology Services International, Inc. (TSI) protests the rejection of its bid as materially unbalanced and the award of a contract to TECHSECO, Inc., under invitation for bids (IFB) No. F09607-97-B0017, issued by the Department of the Air Force for telephone operator services at Moody Air Force Base, Georgia. We deny the protest. The IFB provided for the award of a firm, fixed-price contract for a base with 4 option years. The successful contractor will provide telephone switchboard services 24 hours a day, 7 days a week. The bid schedule required bidders to submit, for each period of the contract, a unit price for the services per month, and an extended price for the services per year. Bidders were informed that the agency would evaluate bids by adding the prices bid for the base and option periods. The IFB also included the standard Contract Award - Sealed Bidding clause, set forth at Federal Acquisition Regulation (FAR) § 52.214-10, which cautions that a bid may be rejected as nonresponsive if the prices are materially unbalanced.1 1This clause states that a bid is materially unbalanced when it is based on prices significantly less than cost for some work and prices which are significantly overstated in relation to cost for other work, and if there is a reasonable doubt that (continued...)

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