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B-288836 1 (2001-12-17)

handle is hein.gao/gaocrptamsq0001 and id is 1 raw text is: G A 0 Comptroller General Accountability * Integrity* Reliability of the United States United States General Accounting Office DOCUMENT FOR PUBLIC RELEASE Washington, DC 20548 The decision issued on the date below was subject to a GAO Protective Order. This redacted version has been approved for public release. Decision Matter of: Priority One Services, Inc. File: B-288836; B-288836.2 Date: December 17, 2001 Kevin P. Mullen, Esq., Piper Marbury Rudnick & Wolfe, for the protester. Scott A. Ford, Esq., for SoBran Incorporated, an intervenor. Michael Colvin, Department of Health & Human Services, for the agency. Charles W. Morrow, Esq., and James A. Spangenberg, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Agency failed to perform a proper cost realism evaluation in awarding a cost reimbursement contract where the agency made no probable cost adjustments even where it identified costs that it believed were unrealistic and did not consider the proposed costs in light of the offeror's proposed technical proposals. 2. Agency's communications after submission of final proposal revisions with one offeror constituted discussions where the agency required the offeror to replace unacceptable personnel, and solicited other proposal revisions from that offeror, which entailed an increase in its proposed costs; thus, the agency was required to conduct discussions with all offerors whose proposals had been determined to be in the competitive range. DECISION Priority One Services, Inc. protests the award of a contract to SoBran Incorporated under request for proposals (RFP) No. NJAID-DIR-01-56, a small business set-aside, issued by the National Institute of Allergy and Infectious Diseases (NIAID), National Institutes of Health, Department of Health & Human Services, for the care, use, and humane treatment of laboratory animals, and technical skills related to the scientific study and manipulation of animals and animal products. Priority One contends, among other things, that NJAID performed an unreasonable cost evaluation and conducted improper discussions with SoBran. We sustain the protest.

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