B-166578, OCT. 10, 1969

B-166578, OCT. 10, 1969

BIDS--EVALUATION--DELIVERY PROVISIONS--LOWEST OVERALL COST TO GOVERNMENT PROTEST TO AWARD FOR TABLEWARE DISPENSORS -- ON BASIS ADDITION OF DIFFERENTIAL SOLICITED IN INVITATION FOR APPLICATION TO F.O.B. ORIGIN BIDS UNDER CERTAIN CONDITIONS AND OFFERED BY AWARDEE WOULD HAVE DISPLACED IT AS LOW BIDDER -- IS DENIED, AS INVITATION SOLICITED PRICES ON F.O.B. DESTINATION AND F.O.B. ORIGIN BASIS AND BIDDERS WERE ADVISED AWARD WOULD BE MADE ON BASIS MOST ADVANTAGEOUS TO GOVERNMENT. BEFORE CONSIDERATION OF WHETHER ANY OFFERED DIFFERENTIAL WAS APPLICABLE, F.O.B. ORIGIN BIDS OF AWARDEE AFTER APPLICATION OF ITS 2 PERCENT DISCOUNT AND ADDITION OF FREIGHT RATES TO DESTINATION WERE HIGHER THAN ITS DISCOUNTED F.O.B. DESTINATION BIDS; MOREOVER, AWARDEE'S DESTINATION BIDS WERE LOWER THAN PROTESTANT'S F.O.B. DESTINATION BIDS AND F.O.B. ORIGIN BIDS PLUS FREIGHT.

TO MR. JOHN HICHO:

REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 4, 1969, PROTESTING THE AWARD TO THE LEVELATOR CORPORATION OF AMERICA OF A CONTRACT FOR ITEMS 7, 12, 16 AND 21 IN DEFENSE SUPPLY AGENCY INVITATION FOR BIDS DSA 400-69-B- 7027, ISSUED ON MAY 16, 1969, FOR VARIOUS TYPES OF TABLEWARE DISPENSERS.

YOU CONTEND THAT YOUR COMPANY SHOULD HAVE RECEIVED THE AWARD FOR THE FOREGOING ITEMS BECAUSE THE ADDITION OF THE DIFFERENTIAL SOLICITED IN THE INVITATION FOR APPLICATION TO F.O.B. ORIGIN BIDS UNDER CERTAIN CONDITIONS AND OFFERED BY LEVELATOR WOULD HAVE DISPLACED IT AS LOW BIDDER ON THOSE ITEMS. HOWEVER, THE AWARD TO LEVELATOR DOES NOT APPEAR TO HAVE BEEN IMPROPER. THE INVITATION SOLICITED PRICES FOR THE SUBJECT ITEMS ON AN F.O.B. DESTINATION AND F.O.B. ORIGIN BASIS AND BIDDERS WERE ADVISED THAT, AS BETWEEN F.O.B. ORIGIN AND F.O.B. DESTINATION BIDS, THE AWARD WOULD BE MADE ON THE BASIS MOST ADVANTAGEOUS TO THE GOVERNMENT. HOWEVER, BEFORE CONSIDERATION OF WHETHER ANY OFFERED DIFFERENTIAL WAS APPLICABLE, THE F.O.B. ORIGIN BIDS OF LEVELATOR AFTER THE APPLICATION OF ITS 2-PERCENT DISCOUNT AND THE ADDITION OF FREIGHT RATES TO DESTINATION WERE HIGHER THAN ITS DISCOUNTED F.O.B. DESTINATION BIDS. MOREOVER, LEVELATOR'S DESTINATION BIDS FOR EACH OF THE SUBJECT ITEMS WERE LOWER THAN YOUR COMPANY'S F.O.B. DESTINATION BIDS AND F.O.B. ORIGIN BIDS PLUS FREIGHT FOR THOSE ITEMS. THIS REGARD, THE RECORD SHOWS THAT THE TWO BIDS WERE EVALUATED AS FOLLOWS:

ITEM 7ITEM 12 ITEM 16 ITEM 21

F.O.B. F.O.B. F.O.B. F.O.B.

DESTINA- F.O.B. DESTINA- F.O.B. DESTINA- F.O.B. DESTINA- F.O.B.

TION ORIGIN TION ORIGIN TION ORIGIN TION ORIGIN

------------------------------------------------------------- --- LINCOLN UNIT PRICE $168.00 162.00 $117.00 110.00 $117.00 110.00 $117.00 $110.00 DISCOUNT -- -

- - - - - FREIGHT 5.37 7.75 6.07

$ 6.07

------ ------ ------ ------ ------ ------ ------ ------ TOTAL $168.00 167.37 $117.00 117.75 $117.00 116.07$117.00 $116.07 LEVELATOR --------- UNIT PRICE $167.00 159.77 $117.00 113.00 $118.00 114.00 $118.00 $113.00 DISCOUNT -3.35 -3.19 2.34 -2.26 -2.36 -2.28 -2.36 -2.36 FREIGHT 8.07 8.93 7.20

7.20

------ ------ ------ ------ ------ ------ ------ ---- - TOTAL $164.42 164.65 $114.66 119.67 $115.64 118.92 $115.64 $117.94

AS A RESULT OF THE EVALUATION, AWARD FOR THE SUBJECT ITEMS WAS MADE TO LEVELATOR AS THE LOWEST BIDDER ON AN F.O.B. DESTINATION BASIS.

IN VIEW OF THE FOREGOING, THE AWARD TO LEVELATOR ON AN F.O.B. DESTINATION BASIS APPEARS PROPER AND, IN THE CIRCUMSTANCES, ANY QUESTION REGARDING THE APPLICATION OF THE OFFERED DIFFERENTIALS IN THE EVALUATION OF LEVELATOR'S F.O.B. ORIGIN BIDS ON THE ABOVE ITEMS HAS BECOME ACADEMIC.