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 <title>The Jones/Hill Joint Venture--Costs, B-286194.3, March 27, 2001</title>
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<abstract>1. Protest challenging the propriety of the Department of the Navy&apos;s
determination, pursuant to Office of Management and Budget Circular
No. A-76, that the most efficient organization/management study (MEO/MS) for
in-house performance offered the same level of performance and performance
quality as the selected private-sector proposal was clearly meritorious,
where certain strengths in the selected private-sector proposal that were
identified during the best value competition were not considered by the
agency in determining that the MEO/MS offered the same level of performance
and performance quality, the agency accepted without adequate analysis
unsupported claims made by the MEO/MS team regarding the MEO/MS&apos;s ability to
achieve the same level of performance and performance quality as the best
value private-sector proposal, and the MEO/MS provided for the performance
of a certain task by individuals who were not part of the MEO/MS and whose
labor costs were not accounted for in the MEO/MS.&lt;p/&gt;2. General Accounting Office recommends that the protester be reimbursed for
the costs of filing and pursuing its protest challenging the Department of
the Navy&apos;s determination, pursuant to Office of Management and Budget
Circular No. A-76, that it would be more economical to perform base
operations and support services in-house, rather than contract for these
services with the protester, where the protest was clearly meritorious and
the contracting agency did not take corrective action in response to the
protest until after the submission of an agency report, the protester&apos;s
comments, a supplemental agency report, supplemental comments, and an
alternative dispute resolution conference during which the GAO attorney
assigned to the protest informed the agency that it had significant
litigation risk with regard to a number of issues raised by the protest.</abstract>
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<note>Comptroller General Decision</note>
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