GSA AND COMMON SENSE SCORE VICTORY WITH ALLIANT 2 PROTEST WIN

Federal agencies have the right to consider technically superior offers that may not always result in the lowest pricing, according to a GAO ruling last week.  Four companies had protested GSA’s Alliant 2 evaluation methodology as not being stringent enough on obtaining the lowest possible prices.  GAO dismissed the protests, though, and said that fair and reasonable pricing for technically superior solutions could be in the best interest of the government.  While the GAO’s decision may sound reminiscent of echoes from the mid 1990’s when “best value” was in vogue, federal agencies more recently had become focused on Low Price, Technically Acceptable (LPTA)-based outcomes.  The GAO ruling is being interpreted by some as a serious set-back for the LPTA movement and a recognition the cheap does not always = good.  Only future procurement actions – and protests – will tell, though.  It is unclear if the decision, for example, will resonate with the drive toward “cheapest guy in town” prices on the Multiple Award Schedule program.  The immediate impact of the decision is that GSA can now proceed with the review and award of Alliant 2 offers, something that should make bidding contractors and customers happy.