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Bid Price Realism Analysis Needn't Rely On Real Prices

Tuesday, July 05, 2011 07:41 am



Ceres Environmental Services, Inc. v. U.S. and Ashbritt, Inc., 2011 COFC No. 09-886C (Mar. 28, 2011)

A sample task order need not require bidders to use actual prices to be a realistic and useful evaluation tool. Ceres Environmental Services, Inc. (Ceres) challenged two awards the Army Corps of Engineers (Corps) made for debris removal following natural/man-made disasters in the regions of Hawaii and Alaska. Ceres claimed the two awardees--Ashbritt, Inc. (Ashbritt) and Phillips & Jordan (P&J)--proposed such low prices as to be unreasonable andthat the Corps's analysis of the two awardees' pricing was arbitrary and capricious. The court disagreed, though it acknowledged its determination was a "close call."

During bid evaluation, the Corps attempted to conduct  a price realism analysis because it was concerned about the significant price reductions both Ashbritt and P&J made to their revised bids. (The cour [...]

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