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No Price Realism Required On Fixed-price Contract

Tuesday, March 01, 2011 03:55 am


Denied: Price Evaluation

Matter of: C.L. Price & Associates, Inc., 2011 Comp. Gen. B-403476.2 (Jan. 7, 2011)

The government isn't responsible for "predatory" low bids as long as it collects an adequate range of price proposals from which to make its award determination.

C.L. Price & Associates (C.L. Price) bid on a Department of the Navy (Navy) Marine Corps Base construction project in North Carolina. When it lost the award, it protested that the Navy "failed to fulfill the responsibility to assure realistic and reasonable pricing." It argued that the awardees' prices were "artificially low."

The Navy sought the best value, based on technical and price factors, and explained in its solicitation that it would evaluate price based on the price bidders provided for a seed project to [...]

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