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B-150871, MAR. 27, 1963

B-150871 Mar 27, 1963
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TO THE SECRETARY OF THE NAVY: REFERENCE IS MADE TO LETTER DATED FEBRUARY 15. DELIVERY WAS SPECIFIED AS F.O.B. AS A PART OF THE INVITATION FOR BIDS THE "PLACE OF DELIVERY: ORIGIN" CLAUSE WAS INCLUDED. THE PURPOSE FOR THIS DATA WITH RESPECT TO DELIVERY AND WEIGHT WAS TO ELICIT SUFFICIENT INFORMATION TO ENABLE THE GOVERNMENT TO COMPUTE THE COST OF TRANSPORTATION WHICH WOULD BE ADDED TO THE BID PRICE TO REFLECT THE TOTAL COST TO THE GOVERNMENT AND TO FORM A BASIS FOR CHARGING THE CONTRACTOR FOR ANY EXCESS SHOULD THE ACTUAL TRANSPORTATION COST EXCEED THE GUARANTEED COST. THE BID IS NONRESPONSIVE. IT IS STATED IN PART. HAVE INCLUDED THE FREIGHT CLASSIFICATION FOR THE ITEM. THESE INGREDIENTS ARE THE SOLE REQUISITES FOR DETERMINING AND COMPUTING APPLICABLE TRANSPORTATION COSTS FOR ANY ITEM.

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B-150871, MAR. 27, 1963

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO LETTER DATED FEBRUARY 15, 1963, FROM ASSISTANT CHIEF FOR PURCHASING, BUREAU OF SUPPLIES AND ACCOUNTS, CONCERNING A PROTEST AGAINST THE PROPOSED REJECTION OF THE BID SUBMITTED BY LITE INDUSTRIES, INCORPORATED, UNDER INVITATION FOR BIDS NO. 600-273-63, ISSUED BY THE NAVY PURCHASING OFFICE, WASHINGTON, D.C., AS BEING A NONRESPONSIVE BID DUE TO THE OMISSION OF ESSENTIAL INFORMATION FOR EVALUATION OF GUARANTEED SHIPPING COSTS.

THE INVITATION REQUESTED BIDS FOR FURNISHING A QUANTITY OF MK 33 MOD O PARAPAKS. DELIVERY WAS SPECIFIED AS F.O.B. ORIGIN WITH SEAL BEACH, CALIFORNIA, AS THE FREIGHT EVALUATION POINT. AS A PART OF THE INVITATION FOR BIDS THE "PLACE OF DELIVERY: ORIGIN" CLAUSE WAS INCLUDED, TOGETHER WITH THE GUARANTEED SHIPPING WEIGHTS CLAUSE AND THE TRANSPORTATION DATA SHEET AS AN ATTACHMENT. THE PURPOSE FOR THIS DATA WITH RESPECT TO DELIVERY AND WEIGHT WAS TO ELICIT SUFFICIENT INFORMATION TO ENABLE THE GOVERNMENT TO COMPUTE THE COST OF TRANSPORTATION WHICH WOULD BE ADDED TO THE BID PRICE TO REFLECT THE TOTAL COST TO THE GOVERNMENT AND TO FORM A BASIS FOR CHARGING THE CONTRACTOR FOR ANY EXCESS SHOULD THE ACTUAL TRANSPORTATION COST EXCEED THE GUARANTEED COST.

THE INVITATION SPECIFICALLY STATED IN THE SECOND PARAGRAPH ON PAGE 6, UNDER "GUARANTEED MAXIMUM SHIPPING WEIGHTS, DIMENSIONS AND RELATED DATA," AND ALSO ON THE TRANSPORTATION DATA SHEET, THAT FAILURE TO FURNISH THE DATA REQUIRED ON THE TRANSPORTATION DATA SHEET WOULD RESULT IN REJECTION OF THE BID.

THE CONTRACTING OFFICER PROPOSES TO REJECT THE BID OF LITE INDUSTRIES ON THE BASIS THAT THE BID DOES NOT CONTAIN ESSENTIAL INFORMATION FOR PROPER AND ACCURATE EVALUATION OF GUARANTEED SHIPPING COSTS AND THAT, THEREFORE, THE BID IS NONRESPONSIVE. LITE INDUSTRIES PROTESTS SUCH PROPOSED ACTION AND, IN LETTER DATED DECEMBER 28, 1962, IT IS STATED IN PART, AS FOLLOWS:

"WE SUBMIT AS FOLLOWS:

"1. A) THAT THE INFORMATION FURNISHED BY US ON THE TRANSPORTATION DATA SHEET INCLUDED THE BASIC AND ESSENTIAL INFORMATION WHICH PERMITS THE FULL EVALUATION OF OUR BID FROM THE STANDPOINT OF TRANSPORTATION COSTS. HAVE INCLUDED THE FREIGHT CLASSIFICATION FOR THE ITEM, THE UNIT WEIGHT AND THE NUMBER OF UNITS PER CONTAINER. THESE INGREDIENTS ARE THE SOLE REQUISITES FOR DETERMINING AND COMPUTING APPLICABLE TRANSPORTATION COSTS FOR ANY ITEM.

B) THE TARE WEIGHT AND DIMENSIONS ARE NOT AT ALL INVOLVED IN FREIGHT COST EVALUATION. WE HAVE SHOWN AN INDIVIDUAL WEIGHT OF 21 LBS., AND BY SPECIFYING THREE (3) UNITS PER CONTAINER WE HAVE DESCRIBED A GROSS WEIGHT FOR THREE (3) UNITS AS 63 LBS. THIS DATA PLUS THE FREIGHT CLASSIFICATION DESIGNATION FULLY ENABLES THE CALCULATION OF TRANSPORTATION COSTS.

"2. A) THE OMISSION OF ITEM 3B--- TARE WEIGHT PER PACKAGE; ITEM 3C--- DIMENSIONS; 4B--- INDIVIDUAL SHIPPING DIMENSIONS; ITEM 4D--- GROSS SHIPPING WEIGHT PER UNIT AND ITEM 4E--- SHIPPING DIMENSIONS OF SHIPPING UNIT ARE ALL "MINOR INFORMALITIES" AND NOT MATERIAL TO THE ACCEPTABILITY AND RESPONSIVENESS OF OUR BID.'

WE DO NOT AGREE. THE 21 POUNDS GIVEN IN PARAGRAPH 4A CLEARLY REFERS TO THE WEIGHT OF THE INDIVIDUAL UNIT UNPACKED, AND THIS FIGURE MULTIPLIED BY 3, THE NUMBER SHOWN IN PARAGRAPH 4C AS THE NUMBER OF UNITS THAT CAN BE PACKED IN A SHIPPING CONTAINER, DOES NOT GIVE THE GROSS SHIPPING WEIGHT OF THE CONTAINER SO PACKED. RATHER, IT GIVES ONLY THE TOTAL WEIGHT OF THREE UNITS UNPACKED FOR SHIPMENT. SINCE THE SHIPPING CONTAINER WOULD CONTAIN THREE UNITS, THERE IS NO QUESTION BUT THAT A PACKED SHIPPING CONTAINER WOULD WEIGH AT LEAST 63 POUNDS, BUT THIS DOES NOT INCLUDE THE WEIGHT OF ANY INTERIOR PACKING AND THE CONTAINER. NOR ARE THE DIMENSIONS OF THE CONTAINER GIVEN, WHICH MIGHT BE REQUIRED IF THE TRANSPORTATION WERE TO BE MADE BY WATER, AS SUGGESTED IN LITE INDUSTRIES LETTER OF NOVEMBER 16, 1962. THE BID CLEARLY DOES NOT CONTAIN SUFFICIENT INFORMATION FOR EVALUATION OF GUARANTEED SHIPPING COSTS.

IN DECISION OF JUNE 15, 1959, 38 COMP. GEN. 819, IT WAS STATED:

"THE PROVISION IN THE INVITATION REQUIRING BIDDERS TO STATE A GUARANTEED SHIPPING WEIGHT IS INTENDED TO FIX EXACTLY THE TOTAL MAXIMUM COST, INCLUDING FREIGHT, TO THE GOVERNMENT. IN VIEW OF THE WIDE RANGE GIVEN BY THE VARIOUS BIDDERS AS THE GUARANTEED SHIPPING WEIGHT THE WISDOM OF THE PROVISION IS OBVIOUS. THE GUARANTEED WEIGHT IS AN ESSENTIAL ELEMENT OF THE BID AND IS MATERIAL IN DETERMINING THE TOTAL AMOUNT THE GOVERNMENT WILL BE REQUIRED TO PAY FOR THE TANKS AT THE DESIRED DESTINATIONS. ORDER TO MEET COMPETITION A BIDDER MAY GUARANTEE A WEIGHT WHICH IS LESS THAN ACTUAL RATHER THAN REDUCE THE PRICE FOR THE ITEM ITSELF. IN THE CIRCUMSTANCES, IT IS OUR OPINION THAT THE FAILURE TO STATE A GUARANTEED SHIPPING WEIGHT IS NOT A MINOR DEFICIENCY IN THE BID WHICH MAY BE WAIVED AS AN INFORMALITY. SEE 30 COMP. GEN. 179 AND 35 ID. 98.'

FOR THE FOREGOING REASONS AND SINCE LITE INDUSTRIES DID NOT SUBMIT WITH ITS BID SUFFICIENT INFORMATION ON WHICH GUARANTEED SHIPPING COSTS CAN BE ESTABLISHED, THE BID IS NOT RESPONSIVE TO THE REQUIREMENTS OF THE INVITATION AND, THEREFORE, MAY NOT PROPERLY BE CONSIDERED FOR AWARD.

THE PAPERS, WITH THE EXCEPTION OF THE CONTRACTING OFFICER'S STATEMENT OF FACT, ARE RETURNED HEREWITH.

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