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The Price Is Right When the Price Is Reasonable. COFC Sees Nothing Wrong With the Agency’s Price Reasonableness Analysis

The protester sought a preliminary injunction of an agency's award. It claimed the agency failed to conduct a price reasonableness test. Based on the record the agency provided, COFC found the agency adequately analyzed reasonableness in compliance with the FAR. Thus, it denied the protester's motion for preliminary injunction.

Orion Government Services, LLC v. United States, COFC No. 25-71
  • Protest - The agency awarded a firm-fixed-price contract for construction serves in the Port of Houston. The protester moved for preliminary injunction arguing that the agency did not conduct a price reasonableness test prior to awarding the contract. The agency refuted the argument by providing excerpts of the Source Selection Decision Document (SSDD) showing that the agency did compare proposal prices to the Independent Government Estimate (IGE) and to each other.
  • Decision - Finding the agency's method consistent with the FAR, COFC found that the protester failed to show the requisite likelihood of success on the merits for a preliminary injunction. The protester also claimed permitting the awardee to begin performance would mean the agency would commit significant funds, which in turn would make meaningful remedy to the protester difficult to calculate. The court found this was inadequate to show irreparable harm. To the contrary, the agency pointed out delay of the contract with an injunction would create risks by restricting vessel movement and exacerbating safety concerns.

-- Case summary by Joshua Lim, Assistant Editor

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