1. Home
  2. |Insights
  3. |Sample Tasks Must Be Reasonable Proxy For Entire Contract

Sample Tasks Must Be Reasonable Proxy For Entire Contract

Client Alert | 1 min read | 06.08.06

Holding that a cost realism analysis must provide a reasonable basis for estimating the cost to the government of an offeror's performance, in Metro Machine Corp . (May 3, 2006, http://www.gao.gov/decisions/bidpro/ 2978792.pdf) GAO overturned the agency's cost realism evaluation because, while sample tasks can provide a reasonable basis to assess the relative costs of competing proposals, the sample tasks used by the agency in this case were not representative of the contract work.  The awardee had proposed a subcontractor with labor rates higher than the prime contractor's to perform a significant portion of the work, but, because that subcontractor had not been included in the proposed solution for any of the sample tasks, the subcontractor's high labor rates were nowhere reflected in the cost realism evaluation.

Insights

Client Alert | 3 min read | 06.30.25

The New EU “Pharma Package”: Preparing for the Trilogues

On June 4, 2025, after nearly two years of intense debate and negotiation between the 27 EU Member States, the Council of the European Union adopted its position on the proposed overhaul of the EU general pharmaceutical legislative framework known as the new Pharma Package....