The protester said the agency erred in upwardly adjusting its rates. The agency did not attempt to defend its contemporaneous adjustments; instead, it offered new calculations and “updated” adjustments. GAO sustained, finding the agency was peddling nothing but improper post hoc justifications.
Conti Federal Services, LLC, GAO B-422162 et al.
- Costs Adjustments – The protester objected to the agency’s cost realism evaluation. The protester said the agency erred in upwardly adjusting the costs of two labor positions and the costs of fuel.
- Post Hoc Rate Justification – In both instances the agency did not attempt to defend its contemporaneous adjustments. Instead, it offered brand-new calculations and “updated” adjustments.
- GAO Rejects Justifications – GAO found the agency’s new calculations amounted to improper post hoc justifications. The agency had not explained the evaluation record or filled in previously unrecorded details. Rather, the agency offered new calculations and new reasons for adjusting rates. This essentially conceded the initial evaluation was flawed. To make matters worse, the recalculation of fuel cost contained mathematical errors.
- Recommendation – GAO recommended the agency review the government estimate and perform a new cost analysis.
The protester is represented by Scott F. Lane, Jayne Marie Ruse, Katherine S. Nucci, and Jeffrey S. Newman of Thompson Coburn LLP. The awardee is represented by Gary J. Campbell and Jedidiah K.R. Blaik of Perkins Coie. The agency is represented by Jenna N. Gustafson and Katherine D. Denzel of the Army. GAO attorneys Heather Self and Peter H. Tran participated in the decision.
--Case summary by Craig LaChance, Senior Editor
GAO - Conti