B-154520, AUG. 25, 1964
Highlights
LTD.: FURTHER REFERENCE IS MADE TO YOUR TWO TELEGRAMS OF JUNE 26. AN INVITATION WAS ISSUED FOR WORK DESCRIBED AS . LUMP-SUM BIDS WERE REQUESTED UPON NAVDOCKS 2996 (1-64) INVITATION. WAS THE LOWEST. WAS NEXT LOW. YOU INSERTED THE FOLLOWING PROVISION ON THE BID FORM: "PROMPT PAYMENT DISCOUNT 2 PERCENT - 10 CALENDAR DAYS 1 PERCENT -20 CALENDAR DAYS NET - 30 CALENDAR DAYS" THE CONTRACT WAS AWARDED TO BLACK MOUNTAIN MAINTENANCE COMPANY. WHEREAS YOU CONTEND THAT YOU WERE ENTITLED TO THE AWARD AS LOW BIDDER. IT WILL BE NOTED THAT. IT WOULD HAVE BEEN NECESSARY FOR PAYMENT TO HAVE BEEN MADE WITHIN 10 DAYS.
B-154520, AUG. 25, 1964
TO TRANS-PACIFIC SERVICES, LTD.:
FURTHER REFERENCE IS MADE TO YOUR TWO TELEGRAMS OF JUNE 26, 1964, PROTESTING AGAINST THE AWARD OF A CONTRACT FOR JANITORIAL SERVICES AT NAVAL SUPPLY CENTER, AND ALAMEDA FACILITY AT NAVAL SUPPLY CENTER, OAKLAND, CALIFORNIA, UNDER INVITATION NBY 61088, SPEC. NO. 61088/64, TO ANY OTHER BIDDER.
THE RECORD INDICATES THAT ON MAY 6, 1964, AN INVITATION WAS ISSUED FOR WORK DESCRIBED AS ,JANITORIAL SERVICES (APPROXIMATELY 600,000 SQ. FT.) NAVAL SUPPLY CENTER AND ALAMEDA FACILITY NSCO, 1 JULY 1964 - 30 JUNE 1965.' WITH BIDS TO BE OPENED JUNE 5, 1964. LUMP-SUM BIDS WERE REQUESTED UPON NAVDOCKS 2996 (1-64) INVITATION, BID, AND AWARD (MAINTENANCE SERVICE CONTRACT) FORM, WHICH MAKES NO PROVISION FOR EARLY PAYMENT DISCOUNTS.
OF THE NINE BIDS RECEIVED IN RESPONSE TO THE INVITATION, THAT SUBMITTED BY BLACK MOUNTAIN MAINTENANCE COMPANY, INC., IN THE AMOUNT OF $168,638.40, WAS THE LOWEST. YOUR BID, IN THE AMOUNT OF $170,400.04, WAS NEXT LOW, BUT YOU INSERTED THE FOLLOWING PROVISION ON THE BID FORM:
"PROMPT PAYMENT DISCOUNT
2 PERCENT - 10 CALENDAR DAYS
1 PERCENT -20 CALENDAR DAYS
NET - 30 CALENDAR DAYS"
THE CONTRACT WAS AWARDED TO BLACK MOUNTAIN MAINTENANCE COMPANY, INC., ON JUNE 26, 1964, WHEREAS YOU CONTEND THAT YOU WERE ENTITLED TO THE AWARD AS LOW BIDDER, BASED UPON THE DISCOUNT FACTOR.
IT WILL BE NOTED THAT, IN ORDER TO BRING THE GOVERNMENT'S ULTIMATE COST UNDER YOUR BID BELOW THAT UNDER BLACK MOUNTAIN'S BID, IT WOULD HAVE BEEN NECESSARY FOR PAYMENT TO HAVE BEEN MADE WITHIN 10 DAYS.
ALTHOUGH, AS INDICATED ABOVE, THE FORM OF INVITATION ISSUED IN THIS CASE DID NOT CONTAIN ANY PROVISION FOR THE QUOTING OF PROMPT PAYMENT DISCOUNTS, NOR ANY STATEMENT AS TO THE MINIMUM PERIOD FOR WHICH SUCH DISCOUNT OFFERS WOULD BE CONSIDERED, THE BUREAU OF YARDS AND DOCKS IN THIS INSTANCE CONSIDERED THE POSSIBILITY OF AVAILING ITSELF OF THE DISCOUNT OFFERED BY YOU AND REPORTS AS FOLLOWS:
"THE BUREAU CONCLUDED THAT PAYMENT COULD NOT BE ASSURED IN THE DISCOUNT PERIOD (THE 10-DAY PERIOD) OFFERED BY THE SECOND BIDDER AND THAT THE SPECIALLY FAVORABLE SITUATION OF THIS FACILITY FOR MAKING PROMPT PAYMENTS DID NOT GIVE SUCH ASSURANCE THAT THE DISCOUNTS WOULD BE TAKEN AS TO JUSTIFY DEPARTING FROM ITS RULE AGAINST CONSIDERING DISCOUNTS IN MAKING AWARD.'
IN VIEW OF THIS DETERMINATION, WE FIND NO LEGAL BASIS FOR QUESTIONING THE AWARD.