United Capital Investment Group (B-423169; B-423169.2)

You should not care.

Category: Cost or price evaluation, price realism

Date: 13 February 2025

URL: https://www.gao.gov/products/b-423169%2Cb-423169.2

United Capital Investment Group (UCIG) protested DLA's award of a fixed-price fuel supply contract in Germany to Stonewin Capital LP, arguing that the agency failed to conduct a required price realism analysis. The solicitation stated that DLA reserved the right to conduct such an analysis but did not mandate it. UCIG contended that Stonewin’s pricing was unrealistically low, suggesting a lack of technical understanding of the contract requirements.

GAO ruled that because the solicitation made price realism analysis optional, DLA had broad discretion in deciding whether to conduct one. The agency reviewed pricing against independent cost estimates and industry benchmarks, concluding that Stonewin’s prices were not so low as to indicate a lack of understanding. As the record showed no material flaws in the agency’s approach, GAO denied the protest.

Price realism analysis is not required in fixed-price procurements unless explicitly stated in the solicitation. Offerors should assume agencies may choose not to conduct such an analysis, even when the solicitation reserves the right to do so.

Digest

Protest that the agency unreasonably failed to evaluate whether awardee’s pricing was realistic is denied where the solicitation did not expressly require the agency to conduct a price realism analysis, and where the protester’s factual assertions regarding the awardee’s pricing is not supported by the record.