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A-76, Handbook: Part I, Ch. 3, H-3 c. - Review of contract and Interservice Support Agreement offers

Comptroller General - Key Excerpts

The RFP anticipated award of a fixed-price contract, with offerors proposing a lump-sum amount for each month's work. As a result, an offeror's decision to reduce its final price, while it may raise concerns about the firm's understanding, technical approach, or capability, could not properly lead the agency to adjust the price up again. Such an evaluated-cost adjustment may be appropriate under a cost-reimbursement solicitation, but is inappropriate in the evaluation of proposals when a fixed-price contract is to be awarded, since the government's liability is fixed, and the risk of cost escalation is borne by the contractor. See Cardinal Scientific, Inc., B-270309, Feb. 12, 1996, 96-1 CPD para. 70 at 4. That is, under a fixed-price contract, as contemplated by the RFP here, the risks associated with performance are to be borne by the contractor, not the government.  (Aberdeen Technical Services, B-283727.2, February 22, 2000)

Comptroller General - Listing of Decisions

For the Government For the Protester
  DynCorp Technical Services LLC, B-284833.3; B-284833.4, July 17, 2001
  Aberdeen Technical Services, B-283727.2, February 22, 2000

 

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