B-135585, JUN. 6, 1958

B-135585, JUN. 6, 1958

TO R. E. LEE ELECTRICAL COMPANY, INC.:

FURTHER REFERENCE IS MADE TO YOUR PROTEST AGAINST THE ACTION OF GENERAL SERVICES ADMINISTRATION IN REFUSING TO MAKE AN AWARD OF A CONTRACT TO YOU FOR REPLACING HIGH VOLTAGE CABLE AT THE PENTAGON BUILDING.

THE GENERAL SERVICES ADMINISTRATION HAS NOW FURNISHED US A COMPLETE REPORT IN THE MATTER, WHICH, IN SUBSTANCE, INDICATES THE FOLLOWING:

BECAUSE OF THE DEGREE OF DIFFICULTY AND THE IMPORTANCE OF THE WORK TO BE PERFORMED, PARAGRAPHS 4-16, 4-17 AND 4-18 CONCERNING THE COMPETENCY OF BIDDERS WERE INSERTED IN THE SPECIFICATIONS. THESE PARAGRAPHS REQUIRE THAT THE CONTRACTOR HAVE SUCCESSFUL EXPERIENCE IN INSTALLING ELECTRICAL EQUIPMENT AND MATERIAL OF THE TYPE AND CLASSES INVOLVED, THAT THE CONTRACTOR HAVE A SATISFACTORY PERFORMANCE RECORD ON PRIOR JOBS AND THAT SUBSTANTIATING DATA BE FURNISHED TO PROVE COMPETENCY AND QUALIFICATIONS. NINE BIDS WERE RECEIVED IN RESPONSE TO THE INVITATION. AN INVESTIGATION WAS MADE OF THE BIDDERS AND IT WAS DETERMINED THAT THE THREE LOW BIDDERS DID NOT QUALIFY AS RESPONSIBLE BIDDERS. YOUR BID OF $129,910 WAS THE THIRD LOWEST. THE INVESTIGATION REVEALED THAT WORK WHICH YOU HAD PERFORMED AND LISTED AS COMPARABLE TO THAT FOR THE PENTAGON PROJECT WAS BELOW $10,000 IN COST AND INCLUDED A VERY LIMITED AMOUNT OF HIGH TENSION WORK. ONLY ONE JOB WAS VALUED AT $100,000 AND IT WAS PRIMARILY THE INSTALLATION OF LIGHTING FIXTURES, BRANCH CIRCUITS AND OVERHEAD LOW VOLTAGE SERVICE DROPS. ACCORDING TO THE INVESTIGATION, YOU DID NOT MAINTAIN IN YOUR EMPLOYMENT QUALIFIED MECHANICS TO PERFORM THE SPECIALIZED HIGH VOLTAGE CABLE WORK REQUIRED FOR SUCH A PROJECT NOR DID YOU HAVE QUALIFIED EMPLOYEES FOR SUPERVISION FOR THIS TYPE OF WORK. IT IS REPORTED THAT YOU ADVISED THE PROCUREMENT AGENCY THAT YOU WERE DEPENDING UPON THE POTOMAC ELECTRIC POWER COMPANY CABLE SPLICERS TO PERFORM THE HIGHLY SPECIALIZED WORK.

ALSO, IT IS REPORTED THAT YOU DID NOT MEET THE REQUIREMENTS OF PARAGRAPH 4-17 (WHICH REQUIRED THE CONTRACTOR TO HAVE A SATISFACTORY RECORD ON PRIOR JOBS) AT LEAST AS TO ONE PRIOR JOB, NAMELY, NEW ELECTRIC SERVICE, AT THE U.S. WEATHER BUREAU, CONTRACT NO. GS-R3-E 3797. PERFORMANCE THERE WAS UNSATISFACTORY BECAUSE OF FAILURE TO PROCURE EQUIPMENT ON SCHEDULE AND FAILURE TO PROCURE MATERIAL OF PROPER SIZE AND QUALITY. ALSO, IT IS REPORTED THAT THE COMPLETION OF THE WEATHER BUREAU PROJECT WAS UNDULY DELAYED BY YOU FOR SEVERAL MONTHS.

HAVING DETERMINED THAT YOU WERE NOT QUALIFIED TO PERFORM THE WORK AT THE PENTAGON BUILDING, THE CHIEF OF THE DESIGN AND CONSTRUCTION DIVISION RECOMMENDED THAT THE THREE LOW BIDDERS BE PASSED OVER, AND THAT AN AWARD BE MADE TO THE FOURTH HIGH BIDDER WHO WAS CONSIDERED COMPETENT AND QUALIFIED. THE QUESTION WAS REFERRED TO THE BOARD OF AWARD OF REGION 3, DESIGN AND CONSTRUCTION DIVISION, PUBLIC BUILDINGS SERVICE, WHERE IT WAS DETERMINED THAT YOU WERE NOT QUALIFIED TO PERFORM THE WORK. THE BOARD RECOMMENDED TO THE CONTRACTING OFFICER THAT THE AWARD BE MADE TO THE FOURTH LOW BIDDER, THE WALTER TRULAND CORPORATION.

THE FUNCTION OF DETERMINING WHETHER A PARTICULAR PERSON OR FIRM IS A RESPONSIBLE BIDDER, WITHIN THE INTENT AND MEANING OF THE ADVERTISING STATUTES OF THE UNITED STATES, AND THUS ELIGIBLE TO RECEIVE AN AWARD OF GOVERNMENT CONTRACTS, IS ESSENTIALLY AN ADMINISTRATIVE ONE, INVOLVING THE DETERMINATION OF SUCH FACTUAL ISSUES AS THE BIDDER'S REPUTATION FOR PAST PERFORMANCE, HIS OVER-ALL EXPERIENCE IN THE PARTICULAR INDUSTRY INVOLVED, HIS PLANT FACILITIES AND EQUIPMENT, INTEGRITY, FINANCIAL RESPONSIBILITY, AND LIKE CONSIDERATIONS, SUCH AS CAN BE DETERMINED ONLY BY, AND TO THE SATISFACTION OF, THE ADMINISTRATIVE OFFICERS OF THE GOVERNMENT ACTUALLY CONCERNED. SEE O-BRIEN V. CARNEY, 6 F.SUPP. 761, 762; 14 COMP. GEN. 306; 26 ID. 676; 34 ID. 86.

IT APPEARS THAT THE GENERAL SERVICES ADMINISTRATION, AFTER A THOROUGH INVESTIGATION, HAS DETERMINED THAT YOU DID NOT QUALIFY AS A RESPONSIBLE BIDDER IN THIS INSTANCE AND ON THE BASIS OF THE REPORTED FACTS WE WOULD NOT BE JUSTIFIED IN DISTURBING THEIR ACTION.