GAO Teaches Course in Cost Realism 101
Client Alert | less than 1 min read | 06.06.07
In Magellan Health Services (Jan. 5, 2007, http://www.gao.gov/decisions/bidpro/298912.pdf), GAO sustained a protest of HHS's award of a cost-plus-fixed-fee contract for employee assistance program services when the agency's cost realism evaluation was unreasonable for several reasons, including a failure to account for insufficient levels of effort and labor rates in the awardee's cost proposal. After chiding the agency for not adjusting the awardee's cost proposal in accordance with the recommendations of the agency's own cost analyst, GAO found the adjusted costs were still lower than the protestor's but the smaller delta required the agency to take another look at its unsupported conclusion that the offerors were "technically equal."
Insights
Client Alert | 1 min read | 08.10.26
In Appeal of Bahadir (a C&M case), the Armed Services Board of Contract Appeals denied the government’s motion to dismiss in its entirety, ruling in favor of the contractor on both key issues raised by the government. The case arises from a contract for construction work at Al Udeid Air Base in Qatar, under which Appellant alleged government-caused delay and filed certified prolongation claims using a “windows analysis” methodology. The government moved to dismiss, arguing that Appellant failed to state a sum certain for each of what the government characterized as 38 distinct claims, and separately that four claims had not been properly presented to the Contracting Officer.
Client Alert | 4 min read | 08.10.26
Client Alert | 4 min read | 08.07.26
Missouri AG Sues Kansas City Over Race- and Sex-Based Contracting Program
Client Alert | 2 min read | 08.06.26
