Under certain circumstances, the winning bidder on a fixed-price contract may offer $0.00.
In a recent decision, LCPtracker, Inc.; eMars, Inc., B-410752.3 et al (Sept. 3, 2015), the GAO held an offeror submitting a zero-dollar offer (that is, an offer for $0.00) was eligible to receive a fixed-price contract because both the Government and the contractor would receive benefits under the contract.
In LCPtracker, the Department of Housing and Urban Development (HUD) sent a solicitation for web-based payroll tracking services to three small businesses: eMars, Inc., LCPtracker, Inc. and Elation Systems, Inc. The successful offeror was to provide web-based services for over 6,000 users dispersed throughout the nation. The solicitation did not request technical proposal submissions, only price quotations. HUD planned to pay for the entire service, which meant offerors would not be able to charge fees to third party users.
Keep reading this article at: http://smallgovcon.com/gaobidprotests/offerors-winning-bid-of-0-00-was-acceptable-says-gao/
