B-158618, MAY 17, 1966

B-158618, MAY 17, 1966

TO ELECTRONIC INDUSTRIES, INCORPORATED:

YOUR LETTER OF MARCH 15, 1966, PROTESTED CONSIDERATION OF THE LOW BID OF BEMAN MANUFACTURING, INCORPORATED, UNDER INVITATION FOR BIDS NO. 104-908- 66, ISSUED BY THE SHIPS PARTS CONTROL CENTER, DEPARTMENT OF THE NAVY, ON JANUARY 6, 1966.

THE INVITATION, CONSISTING OF OPTIONAL QUANTITY AND DELIVERY SCHEDULES, REQUESTED BIDS, TO BE OPENED ON JANUARY 27, 1966, FOR THE FURNISHING IN "STEP-LADDER" QUANTITIES OF 4,866,000 UNITS OF FSN-1340 671-5141 LEAD, ELECTRICAL, GROUND, FOR THE 2.75 INCH ROCKET MOTOR INVOLVING A MULTI-YEAR PROCUREMENT WITH THREE PROGRAM-YEAR REQUIREMENTS AS FOLLOWS:

CHART

FIRST PROGRAM YEAR 948,500 UNITS

SECOND DO. DO. 1,035,000 DO.

THIRD DO. DO. 2,882,500 DO.

PRIOR TO BID OPENING IT WAS DISCOVERED THAT THE INVITATION CONTAINED SEVERAL TYPOGRAPHICAL ERRORS; SPECIFICALLY IN THE PARAGRAPH ENTITLED "MATERIAL DESTINATION," ON PAGE NO. 3, AND IN THE QUANTITY TO BE DELIVERED DURING CERTAIN MONTHS OF THE DELIVERY SCHEDULE, AS SET FORTH ON PAGE NO. 8. THESE ERRORS WERE CORRECTED BY AMENDMENT NO. 1, ISSUED ON JANUARY 12, 1966, WHICH READS AS FOLLOWS:

"UNDER "MATERIAL DESTINATION" ON PAGE 3, CORRECT THE QUANTITY FOR THE FIRST PROGRAM YEAR TO READ 948,500 IN LIEU OF 948,000.

ON PAGE 8 MAKE THE FOLLOWING CORRECTIONS:

FIRST PROGRAM YEAR

BID 4 - CORRECT SECOND LINE FIGURE TO READ 115,500 IN LIEU OF 115,000.

THIRD PROGRAM YEAR

BID 1 - CORRECT FIFTH LINE FIGURE TO READ 65,750 IN LIEU OF 65,760.

BID 2 - CORRECT THIRTEENTH LINE FIGURE TO READ 130,000 IN LIEU OF 131,000.

BID 3 - CORRECT THIRTEENTH LINE FIGURE TO READ 195,000 IN LIEU OF 196,500.

BID 4 - CORRECT THIRTEENTH LINE FIGURE TO READ 260,000 IN LIEU OF 262,000.

TEN FIRMS SUBMITTED BIDS IN RESPONSE TO THE INVITATION. IT IS YOUR CONTENTION THAT BECAUSE THE LOW BIDDER (BEMAN) FAILED TO RETURN THE SUBJECT AMENDMENT WITH ITS BID, AS PER A SPECIFIC REQUIREMENT CONTAINED IN THE INVITATION, ITS BID IS BASED ON THE UNCORRECTED QUANTITIES LISTED IN THE ORIGINAL INVITATION AND MAY NOT BE CONSIDERED. BEMAN'S BID WAS $0.064 PER UNIT, FOB DESTINATION, AT A TOTAL PRICE OF $311,424 FOR THE 4,866,000 UNITS, UNDER ALTERNATE BID NO. B-4 WHICH THE CONTRACTING OFFICER CONSIDERED TO BE THE MOST ADVANTAGEOUS TO THE GOVERNMENT. YOUR BIDS VARIED BETWEEN $0.0755 AND $0.095 PER UNIT, UNDER THE DIFFERENT POSSIBLE SCHEDULES; HOWEVER, IT WAS ?076 FOB DESTINATION, AT A TOTAL PRICE OF $369,816 UNDER BID NO. B-4.

IN RESPECT TO YOUR CONTENTION THAT AWARD OF THE CONTRACT TO BEMAN WOULD BE ARBITRARY AND UNFAIR, AS WELL AS PRECLUDED BY THE TERMS OF THE INVITATION, YOUR ATTENTION IS INVITED TO ARMED SERVICES PROCUREMENT REGULATION (ASPR) 2-405 WHICH READS, IN PART, AS FOLLOWS:

"2-405 MINOR INFORMALITIES OR IRREGULARITIES IN BIDS. A MINOR INFORMALITY OR IRREGULARITY IS ONE WHICH IS MERELY A MATTER OF FORM OR IS SOME IMMATERIAL VARIATION FROM THE EXACT REQUIREMENTS OF THE INVITATION FOR BIDS, HAVING NO EFFECT OR MERELY A TRIVIAL OR NEGLIGIBLE EFFECT ON PRICE, AND NO EFFECT ON QUALITY, QUANTITY OR DELIVERY OF THE SUPPLIES OR PERFORMANCE OF THE SERVICES BEING PROCURED, AND THE CORRECTION OR WAIVER OF WHICH WOULD NOT AFFECT THE RELATIVE STANDING OF, OR BE OTHERWISE PREJUDICIAL TO, BIDDERS. THE CONTRACTING OFFICER SHALL EITHER GIVE TO THE BIDDER AN OPPORTUNITY TO CURE ANY DEFICIENCY RESULTING FROM A MINOR INFORMALITY OR IRREGULARITY IN A BID, OR, WAIVE ANY SUCH DEFICIENCY WHERE IT IS TO THE ADVANTAGE OF THE GOVERNMENT. EXAMPLES OF MINOR INFORMALITIES OR IRREGULARITIES INCLUDE:

"/IV) FAILURE OF A BIDDER TO ACKNOWLEDGE RECEIPT OF AN AMENDMENT TO AN INVITATION FOR BIDS, BUT ONLY IF---

"/B) THE AMENDMENT CLEARLY WOULD HAVE NO EFFECT OR MERELY A TRIVIAL OR NEGLIGIBLE EFFECT ON PRICE, AND NO EFFECT ON QUALITY, QUANTITY, DELIVERY, OR THE RELATIVE STANDING OF BIDDERS, SUCH AS AN AMENDMENT CORRECTING A TYPOGRAPHICAL MISTAKE IN THE NAME OF THE GOVERNMENT PURCHASING CTIVITY; *

THE ADMINISTRATIVE REPORT CONCLUDES THAT THE CHANGES IN THE MONTHLY DELIVERY QUANTITIES, AS REQUIRED BY THE AMENDMENT, CONSIDERED IN CONJUNCTION WITH THE ABOVE-CITED SECTION OF ASPR, ARE NEGLIGIBLE. THE CHANGES RANGE FROM A MINUS 10 UNITS IN A MONTH IN WHICH 65,750 UNITS ARE TO BE DELIVERED, TO A MINUS 2000 UNITS IN A MONTH INVOLVING 260,000 UNITS. IN ONLY ONE MONTH--- THE SECOND MONTH OF BID NO. B-4--- DOES THE CORRECTION RESULT IN AN INCREASE AND THAT IS ONLY 500 UNITS, WHEREAS 115,000 WERE ORIGINALLY ORDERED. IN VIEW OF THE FOREGOING, THE DEPARTMENT CONSIDERED THAT THE REDUCTIONS IN THE DELIVERY SCHEDULE WOULD NOT RESULT IN ANY PRICE ADJUSTMENT, AND THE SINGLE INCREASE WOULD RESULT IN ONLY A TRIVIAL PRICE CHANGE, IF ANY, IN THAT THE VALUE OF 500 UNITS AT THE BID PRICE OF $0.0635 IS ONLY $31.75.

FOR THESE REASONS, WE CONCUR IN THE DEPARTMENT'S VIEW THAT THE LOW BIDDER'S FAILURE TO ACKNOWLEDGE THE AMENDMENT WAS A MINOR INFORMALITY WHICH THE CONTRACTING OFFICER PROPERLY WAIVED UNDER THE CIRCUMSTANCES.