This week’s Bid Protest Weekly article focuses on an interesting consequence of an agency using the prices of a current contract to establish the government estimate of a new procurement. The incumbent contractor submitted a proposal on the new procurement. In its analysis of the reasonableness of the incumbent contractor’s price proposal, by using the government estimate as a comparison, the agency essentially compared the incumbent to itself. GAO found that this method of determining price reasonableness was acceptable, and denied the protest.
The Bid Protest Weekly is an online journal created and maintained by our Government Contracts Practice Group. This and similar articles analyzing recent bid protest decisions are posted each week on the Bid Protest Weekly website: www.bidprotestweekly.com. The Bid Protest Weekly website also offers a continuously expanding archive of decision digests dating back to 2008 that summarize and categorize GAO bid protest decisions.