Client Alerts & Newsletters

Price Realism Requirement Must Be Stated to Allow Unacceptability Finding

November 25, 2015

In W.P. Tax & Accounting Group (Nov. 13, 2015), GAO reminded agencies that, in fixed-price procurements, below-cost pricing is not inherently improper and cannot serve as the basis for a technical unacceptability finding when the solicitation does not provide for a price realism evaluation. Because the solicitation in W.P. said nothing about a price realism evaluation, GAO overturned the agency's rejection of the low-priced vendor's quotation as technically unacceptable and recommended that the agency either reevaluate the vendor's quotation against the stated evaluation criteria or amend the solicitation to provide for a price realism evaluation.

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Daniel R. Forman
Partner – Washington, D.C.
Phone: +1.202.624.2504

John E. McCarthy Jr.
Partner – Washington, D.C.
Phone: +1.202.624.2579

James G. Peyster
Counsel – Washington, D.C.
Phone: +1.202.624.2603

Robert J. Sneckenberg
Partner – Washington, D.C.
Phone: +1.202.624.2874

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