B-153445, MAY 14, 1964

B-153445, MAY 14, 1964

TO COVINGTON AND BURLING:

REFERENCE IS MADE TO YOUR LETTER DATED APRIL 20, 1964, PROTESTING IN BEHALF OF STANDARD PRESSED STEEL COMPANY THE ISSUANCE BY THE GENERAL SERVICES ADMINISTRATION OF INTERIM INVITATION FOR BIDS NO. FPNFO-P 54699-2 -A-5-5-64, DATED APRIL 15, 1964, WITH BID OPENING DATE OF MAY 5, 1964, FOR FILING CABINETS.

THE "NOTICE TO PROSPECTIVE BIDDERS" ACCOMPANYING THE BID FORMS STATES THAT "THIS IS AN EMERGENCY DEFINITE QUANTITY PROCUREMENT.'

IT APPEARS THAT IFB-FPNFO-Z-54699-A-12-5-63, FOR STEEL FILING CABINETS, BID OPENING DATE DECEMBER 5, 1963, IN CONSEQUENCE OF PROTESTS MADE TO THE GENERAL SERVICES ADMINISTRATION AND TO OUR OFFICE, WAS THE SUBJECT OF DECISION DATED MARCH 5, 1964, B-153445, WHICH HELD THAT THE INVITATION SHOULD BE CANCELLED AND READVERTISED. IMMEDIATELY FOLLOWING THE ISSUANCE OF THAT DECISION, YOU, IN BEHALF OF STANDARD PRESSED STEEL COMPANY, REQUESTED RECONSIDERATION OF THE DECISION AND THAT YOUR CLIENT BE DECLARED THE LOW RESPONSIVE BIDDER. OTHER BIDDERS ALSO REQUESTED RECONSIDERATION; THAT YOUR CLIENT'S BID BE HELD NONRESPONSIVE; AND THAT AWARDS BE MADE TO THE SECOND LOW BIDDERS.

IT FURTHER APPEARS THAT THE NEW INVITATION IS FOR A DEFINITE QUANTITY OF FILING CABINETS--- NEARLY 27,000 UNITS--- FOR MANUFACTURE AND DELIVERY AT A NUMBER OF POINTS IN THE UNITED STATES. THE METHOD OF AWARD IS DIFFERENT FROM THAT PRESCRIBED IN THE ORIGINAL INVITATION WHICH WAS AN INDEFINITE "OPEN END" INVITATION.

YOU CONTEND THAT THE METHOD PRESCRIBED IN THE INTERIM INVITATION MINIMIZES COMPETITION BECAUSE THE BIDDER MUST BID ON AN ENTIRE GROUP AND, IF LOW, MUST MAKE DELIVERY ON A NATIONAL SCALE, A MATTER WHICH IS OF DISTINCT COMPETITIVE ADVANTAGE TO THE LARGER COMPANIES WITH FACTORIES LOCATED REGIONALLY. IN ADDITION TO THE ABOVE, EACH OF THE OTHER ARGUMENTS IN SUPPORT OF YOUR PROTEST HAS BEEN CAREFULLY CONSIDERED, AND WE CAN FIND NO LEGAL BASIS FOR DENYING THE RIGHT OF THE GENERAL SERVICES ADMINISTRATION TO OBTAIN THESE CABINETS UNDER THE CIRCUMSTANCES HERE EXISTING.

AT PRESENT THE GENERAL SERVICES ADMINISTRATION, IN VIEW OF THE RECONSIDERATION OF OUR DECISION OF MARCH 5, 1964, CANNOT TAKE ACTION ON THE ORIGINAL INVITATION. YET THE NEED FOR THE CABINETS CONTINUES AND REQUISITIONS ARE MADE ON THE GENERAL SERVICES ADMINISTRATION BY OTHER AGENCIES. WE ARE INFORMED THAT AT THE TIME OF THE ISSUANCE OF THE EMERGENCY INVITATION, REQUISITIONS HAD BEEN RECEIVED IN EXCESS OF THE QUANTITY CALLED FOR IN THE INVITATION, AND THAT AS OF NOW, THE REQUISITIONS FAR EXCEED THE NUMBER CALLED FOR AND THE NUMBER INCREASES DAILY.

IT FURTHER APPEARS THAT THE GENERAL SERVICES ADMINISTRATION CANNOT PREDICT THE RESULT OF THE PRESENT CONSIDERATION OF OUR DECISION OF MARCH 5, 1964, AND FACED WITH THE EXISTING INSTRUCTION TO CANCEL, MUST ALLOW LEAD TIME FOR READVERTISING IN THE EVENT THE PRIOR DECISION IS SUSTAINED. IN THESE CIRCUMSTANCES THE PROLONGED DELAY IS SAID TO HAVE CREATED AN EMERGENCY REQUIRING THE INTERIM INVITATION.

IT MAY BE POINTED OUT ALSO, THAT UNDER THE CIRCUMSTANCES HERE OBTAINING, WE BELIEVE THE CONTRACTING OFFICER COULD HAVE, HAD HE SO DESIRED, OBTAINED THE NEEDED QUANTITY OF CABINETS BY NEGOTIATION, BUT CHOSE INSTEAD TO ADVERTISE IN ORDER TO PERMIT COMPETITION.

FOR THE REASONS ABOVE INDICATED OUR OFFICE WOULD NOT BE JUSTIFIED IN OBJECTING TO THE ACTION TAKEN BY THE GENERAL SERVICES ADMINISTRATION IN THE PRESENT MATTER, AND YOUR PROTEST AGAINST THIS INVITATION IS DENIED.

THERE IS ENCLOSED HEREWITH A COPY OF OUR DECISION OF TODAY TO THE ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION, RELATIVE TO YOUR REQUEST FOR RECONSIDERATION OF OUR DECISION OF MARCH 5, 1964, B 153445, CONCERNING IFB NO. FPNFO-P-54699-2-A-12-5-63.