B-152341, MAR. 13, 1964

B-152341, MAR. 13, 1964

TO S AND H COMPANY OF BREVARD COUNTY:

REFERENCE IS MADE TO YOUR TELEGRAM OF JANUARY 23, 1964, REQUESTING THAT THE PORTION OF CONTRACT NO. NAS 10-786 RELATING TO REQUIREMENTS SCHEDULED FOR DELIVERY ON FEBRUARY 1, 1964, BE CANCELLED AND AWARDED TO YOU.

THE CONTRACT WHICH COVERED THE LEASE OF SPECIALLY BUILT VEHICLES TO THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION (NASA), JOHN F. KENNEDY SPACE CENTER, COCOA BEACH, FLORIDA, FOR DELIVERY ON VARIOUS DATES COMMENCING AUGUST 1, 1963, WAS AWARDED TO MANAGEMENT SERVICES INCORPORATED OF TENNESSEE, PURSUANT TO INVITATION FOR BIDS NO. CC-293 3. IN OUR DECISION OF JANUARY 10, 1964, B-152341, WE STATED THAT THE REJECTION OF YOUR LOW BID UNDER THE INVITATION WAS IMPROPER AND THAT, HAD IT BEEN CONSIDERED, IT WOULD APPEAR THAT YOU WOULD HAVE RECEIVED THE AWARD. HOWEVER, FOR SEVERAL REASONS, WHICH WERE SET FORTH IN OUR DECISION, WE CONCURRED WITH THE ADMINISTRATIVE DETERMINATION THAT CANCELLATION OF THE CONTRACT WOULD NOT BE IN THE BEST INTEREST OF THE GOVERNMENT.

UPON NOTIFYING NASA OF YOUR TELEGRAPHIC REQUEST OF JANUARY 23, 1964, WE WERE ADVISED ON JANUARY 27, 1964, THAT CONTRACT NO. NAS 10-786, AS WELL AS CONTRACT NO. NAS 10-800, HAD BEEN TERMINATED ON JANUARY 24, 1964. THEREFORE REQUESTED A DETAILED REPORT OF THE TERMINATIONS.

WE ARE NOW IN RECEIPT OF AN ADMINISTRATIVE REPORT AND OTHER RECORDS WHICH SHOW THAT NOTICES OF TERMINATION WERE ISSUED TO THE CONTRACTOR ON JANUARY 24, 1964, FOLLOWING RECEIPT BY THE PROCURING ACTIVITY OF NOTICE OF THE ESTABLISHMENT BY GENERAL SERVICES ADMINISTRATION, PURSUANT TO EXECUTIVE ORDER NO. 10579, OF AN INTERAGENCY MOTOR POOL SYSTEM AT THE CAPE KENNEDY COMPLEX EFFECTIVE ON MARCH 9, 1964. THE TERMINATION, HOWEVER, INVOLVED THE DISPOSITION OF 62 VEHICLES, WHICH WAS THE SUBJECT OF DISCUSSIONS BETWEEN NASA AND THE GENERAL SERVICES ADMINISTRATION, AND THE PROBLEM WAS RESOLVED ON FEBRUARY 12 BY AGREEMENT ON THE PART OF GSA TO ASSUME SUCCESSOR INTEREST IN THE TWO CONTRACTS AFTER MARCH 9, BUT NOT LATER THAN APRIL 1, 1964. ON THE BASIS OF AN ADMINISTRATIVE DETERMINATION THAT IT WOULD BE MORE ECONOMICAL FOR THE GOVERNMENT TO CONTINUE THE CONTRACTS IN FORCE THAN TO SUBJECT ITSELF TO TERMINATION CHARGES IN THE ESTIMATED AMOUNT OF APPROXIMATELY $200,000, THE TERMINATION NOTICES WERE CANCELLED AS OF FEBRUARY 14.

WE ARE FURTHER ADVISED THAT AS OF JANUARY 23 ALL OF THE VEHICLES FOR FEBRUARY 1 DELIVERY HAD BEEN ORDERED, AND HAD EITHER BEEN DELIVERED TO POINTS IN OR NEAR THE COCOA AREA OR WERE IN COURSE OF DELIVERY. SINCE IT DOES NOT APPEAR THAT EITHER YOU OR THE GOVERNMENT COULD HAVE REQUIRED MANAGEMENT SERVICES INCORPORATED TO TURN THE VEHICLES OVER TO YOU AT COST, AND IT DOES NOT APPEAR THAT YOU WOULD OTHERWISE HAVE BEEN IN A POSITION TO PERFORM ON THAT PART OF THE CONTRACT, WE CANNOT DISAGREE WITH THE NASA CONCLUSION THAT IT WOULD NOT HAVE BEEN IN THE BEST INTEREST OF THE GOVERNMENT TO COMPLY WITH YOUR SUGGESTION, NOR DOES IT APPEAR THAT IT WOULD BE ANY MORE ADVANTAGEOUS TO DO SO NOW.

IN VIEW OF THE FOREGOING, WE SEE NO BASIS ON WHICH WE WOULD BE JUSTIFIED IN OBJECTING TO THE AGENCY'S ACCEPTANCE FROM MANAGEMENT SERVICES INCORPORATED OF THE VEHICLES SCHEDULED FOR DELIVERY ON FEBRUARY 1, 1964.