An Army solicitation included the FAR clause “Notice of Price Evaluation Adjustment for SDB Concerns” that provides that bids of all non-small disadvantaged businesses were to have their bids evaluated at a price 10 percent higher than the actual bid.  Anticipating it would receive a 10 percent price preference Si-Nor, an SDB, increased its price 10 percent.  After receiving bids the Army concluded it had mistakenly included the price preference clause and informed bidders their bids would be evaluated without any 10 percent SDB preference.  Si-Nor protested arguing it would have “sharpened our pencil” and bid a lower price had it known the preference would not be applied.  The GAO ruled against Si-Nor stating they were not prejudiced (e.g. hurt) by the Army decision since not only large and small non-SDB businesses were bidding but also other SDB businesses were competing (in fact another SDB won).  The GAO concluded that Si-Nor took a risk and cannot now assert the preference rather than its own judgment was the cause of its failure to submit the low bid (SiNor Inc., GAO, B-286910).

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