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<classification authority="sudocs">GA 1.13:B-295376</classification>
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<abstract>1.  Protest alleging agency improperly assumed that regulated offerors
presented lower risk than non-regulated offerors in its evaluation of
proposals for privatization of wastewater and storm water utility systems
is denied where the solicitation provided that proposals would be
evaluated based on the degree to which long-term price and service
stability were enhanced as a result of regulation by an independent
federal, state, or local regulatory authority with jurisdiction over the
applicable utility service, and where the record shows that the agency
reasonably concluded that regulated utility offeror presented low risk
under evaluation subfactor relating to long-term price and service
stability. 2.  Agency&apos;s determination that the awardee&apos;s prices for
wastewater and storm water utility services were fair and reasonable, that
the work could be performed at the prices proposed, and that the awardee&apos;s
proposal represented low risk for price realism was reasonable where the
agency based its conclusion on extensive consideration of the awardee&apos;s
pricing strategy, the elements of its pricing, and the detailed breakdowns
of its price structure, as well as the agency&apos;s comparison of the
awardee&apos;s price with the government&apos;s cost estimate and the agency&apos;s
consideration of the awardee&apos;s status as a regulated entity. 3.  Offeror&apos;s
proposal for wastewater and storm water utility services was not rendered
unacceptable where it proposed rates that were contingent upon approval by
an independent regulatory body after contract award.</abstract>
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<note>Comptroller General Decision</note>
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