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The Government Accountability Office (“GAO”) recently sustained a protest in the matter of Vectrus Mission Solutions Corporation; Vanquish Worldwide, LLC where an agency improperly adjusted an offeror’s proposal price upward when the offeror expressly had agreed to absorb any costs above a cap in its proposal. The GAO’s decision provides insight into cost realism evaluations such as when they should be undertaken and when they can be avoided. When permitted by the terms of a Solicitation, agencies conduct price or cost realism evaluations to determine whether an offeror’s proposed costs are “realistic for the work to be performed, reflect a clear understanding of the requirements, and are consistent with the unique methods of performance and materials described in the offeror’s technical proposal.” Generally, a cost realism evaluation is required to be performed for award of cost-reimbursement contracts