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<classification authority="sudocs">GA 1.13:B-289096.3</classification>
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 <title>PADCO, Inc.--Costs, B-289096.3, May 3, 2002</title>
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<abstract>1.  Protest challenging reasonableness of the agency&apos;s cost realism
analysis of the awardee&apos;s proposed indirect costs was clearly meritorious
where the agency accepted, without any analysis, the awardee&apos;s unexplained
final proposed rates, which were substantially less than those initially
proposed, its historical rates, and its proposed ceiling rates.
    
2.  General Accounting Office (GAO) recommends that protester be
reimbursed the costs of filing and pursuing its initial protest where the
agency unduly delayed taking corrective action in response to the initial
protest, which was clearly meritorious, until almost 2 months after the
initial protest was filed and after submitting a report on the protest;
GAO does not recommend the reimbursement of the costs of filing and
pursuing supplemental protest grounds, which were clearly severable from
the initial protest bases, because the agency did not unduly delay, but
took corrective action in response to these protest grounds within 2 weeks
of these grounds being raised, before the agency report on the
supplemental protest grounds was due.</abstract>
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<note>Comptroller General Decision</note>
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