About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline



B-193001 1 (1978-10-30)

handle is hein.gao/gaobadgox0001 and id is 1 raw text is: 

                                                      I
                                                    A




   101
                      THE COMPTROLLER   Off: -44AL
DECISION              OP  THU  UNITED    *TATEU
                      2  SNHINGTON,   D.C. RO548



FILE:    B-193001          DATE: October 30, 1978

MATTER  OF: Stancil-Hoffman Corporation


DIGEST:


     Allegation that contractor will not
     satisfactorily perform contract because
     it allegedly submitted a below-cost bid
     constitutes protest against agency's
     affirmative determination of responsi-
     bility and is not for review by GAO
     absent circumstances not present here.


     Stancil-Hoffman Corporation (Stancil-Hoffman)
 protests award of contract No. F04606-78-C-115 by
 Mcclellan Air Force Base, California, to Video
 Research Corporation (Video) for 20 channel voice
 recorder/ reproducer systems.

      Stancil-Hoffman contends that Video's bid
 constitutes a buy-in and that such a bi is pro-
 hibited by Defense Acquisition Regulation .(DAR)
 5 1-311 (1976 ed.) which states that the Department
 of Defense does not favor buying-in. Stancil-
 Hoffman also asserts that Video will not be able to
 supply the systems as required in the snecifications
 at the contract price.

     Although DAR S 1-311 discourages buying-in,
 the practice is not illegal and does not preclude
 the Government's acceptance of a below-cost bid.
 Sde Allied Technolo y, Inc., B-185866, July 12, 1976,
 YV2 CPb 34. -Thus, the fact that a low bidder may
 incur a loss at its bid price does not justify
 rejecting an otherwise acceptable bid. Inter-Con
 Security Systems, Inc., B-189165, June 15, 1977,
 77-1 CPD 434. However, the regulation does caution
 contracting officers to assure that amounts excluded











     II