(Editor’s Note.  Be wary of recovering contingent professional services costs.)

The GAO sustained ALF’s protest but since the Army had already proceeded with performance and the supplies were urgently needed, the GAO decided not to reopen competition but rather agreed to reimburse ALF for its proposal and protest costs.  Its submittal for protest costs included total number of hours worked for its consultant, rate of compensation and total cost but provided no evidence he had been paid during the one year that had elapsed between receipt of the consultant’s invoice and its filing the costs claimed. The GAO ruled only if there is evidence of a non-contingent obligation to repay a subcontractor for its expenses – that is the protester must pay regardless of whether it recovers costs from the government – will it consider them as recoverable (Al Long Ford – Costs, GAO, B-297807).

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