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ARTICLE · 26 NOVEMBER 2013

Equal Doesn’t Always Mean Fair

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On November 13, 2013, GAO reaffirmed its view that normalization of costs is impermissible in acquisitions where offerors’ approaches are not required to be the same.

United StatesGovernment, Public Sector
Anne Perry
Anne Perry
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On November 13, 2013, GAO reaffirmed its view that normalization of costs is impermissible in acquisitions where offerors' approaches are not required to be the same. In AXIS Management Group LLC, B-408575 (Nov. 13, 2013), the Department of the Interior's ("the Agency") decision to normalize offerors' labor hours and labor mixes was found to be unreasonable because the Agency ignored the unique approach proposed by each of the offerors.  The acquisition sought laboratory operational support at the National Water Quality Laboratory ("NWQL") using an indefinitely delivery, indefinite quantity contract.  Technical merit was identified as significantly more important that the total evaluated price.  Offerors' price proposals were to consist of unit prices for two contract line items, one for front desk support and the other for information technology support, and to provide proposed "labor categories, number of hours and hourly rates for three CLINS: (1) laboratory

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