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 <title>National Steel and Shipbuilding Company, B-281142; B-281142.2, January 4, 1999</title>
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<abstract>1. Discussions regarding protester&apos;s significantly understated staffing
estimates were meaningful where the protester was generally advised of a
number of significant shortfalls in its estimates, specifically informed of
the single-most significant area of concern, and advised to provide detailed
support for its estimates.&lt;p/&gt;2. Technical evaluation that concluded that the protester&apos;s proposal&apos;s
staffing estimates for ship conversion work evidenced a lack of
understanding was reasonable where the proposed staffing was significantly
less than that reflected in the independent government estimate, which was
based on actual data from completed contracts for similar ship conversion
work, as well as the contract cost experiences on conversion work on sister
ships, and the protester&apos;s proposal did not provide adequate support for the
claims of substantial efficiencies as would justify such low staffing
estimates.&lt;p/&gt;3. Agency&apos;s application of an &quot;intrinsic value&quot; cost evaluation factor
included in a solicitation for ship conversion work to credit offerors for
proposed early completion of ship repair was unobjectionable.&lt;p/&gt;4. Where the solicitation gave significant evaluation weight to determining
the realism of staffing estimates to assess understanding of the scope of
work, the agency properly selected a higher-rated, higher-cost proposal that
was determined to exhibit superior understanding instead of a lower-cost
proposal, which was reasonably found to lack understanding as evidenced by
its offer of staffing levels significantly below those reasonably determined
to be necessary to perform the contract work.</abstract>
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<note>Comptroller General Decision</note>
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