Bidder Exceeded Govt. Contract Price Limit, Still Won Award

Friday, November 02, 2018 6:39 am
November 2018 - Volume 40 Number 11

Denied: Bid Price

Matter of: Daniels Building Company, Inc., 2018 U.S. Comp. Gen. B-416611 Lexis 312 (October 1, 2018)

A government solicitation first set the project budget at $10 million and then later raised it to $20 million. The bidder who would have won under the first price limit then lost out under the revised one---and protested to no avail.

On January 12, 2018, the Department of Veterans Affairs (VA) issued an invitation for bids (IFB) for the construction of a parking garage at the VA Ann Arbor Healthcare system in Michigan. The IFB requested prices for both a base item and a deductive alternate item. The solicitation also warned bidders of a strict budgetary limit set by the Veterans Health Administration (VHA): The total project costs could not exceed $10 million for design and construction. If the pricing offered for the work would cause the project to exceed its $10 million limit, the VA warned, the solicitation could be cancelled and a contract award not made. The VA anticipated awarding t[..]