Agency Unreasonably Assumed Awardee Would Cover Variable Costs; GAO B-407966.4, GiaCare and MedTrust JV, LLC

Protest challenging the agency’s price realism evaluation is sustained, where the agency failed to consider the compatibility of the awardee’s pricing with its proposed technical approach, and where the agency erroneously assumed the majority of the awardee’s overhead and G&A are fixed costs and that the awardee would cover their variable costs; and protest challenging the agency’s technical is sustained, where the agency did not consider the effect of the awardee’s low proposed rates on its ability to perform the work; and protest challenging the agency’s past performance evaluation is denied, where the solicitation did not bar the agency from considering performance references for a proposed subcontractor.