B-216742, OCT 23, 1984, 84-2 CPD 458
Highlights
CONTRACTS - NEGOTIATION - PRICES - REDUCTION - AFTER BEST AND FINAL OFFERS - PROPRIETY DIGEST: PROTEST THAT AN OFFEROR WAS PERMITTED TO REDUCE ITS PRICE AS THE RESULT OF THE CONTRACTING ACTIVITY'S REQUEST FOR BEST AND FINAL OFFERS IS SUMMARILY DENIED. SINCE DISCUSSIONS AND BEST AND FINAL OFFERS THAT INCLUDE PRICE CHANGES ARE A NORMAL ASPECT OF NEGOTIATED PROCUREMENTS. RON'S WELDING COMPLAINS THAT PACIFIC MARINE WAS PERMITTED TO REDUCE ITS PRICE AS THE RESULT OF THE CONTRACTING ACTIVITY'S REQUEST FOR BEST AND FINAL OFFERS. RON'S WELDING BELIEVES THAT IT WAS SOMEHOW IMPROPER FOR THE CONTRACTING ACTIVITY TO PERMIT PACIFIC MARINE TO MAKE SUCH A SIGNIFICANT CHANGE IN ITS INITIAL OFFERED PRICE.
B-216742, OCT 23, 1984, 84-2 CPD 458
CONTRACTS - NEGOTIATION - PRICES - REDUCTION - AFTER BEST AND FINAL OFFERS - PROPRIETY DIGEST: PROTEST THAT AN OFFEROR WAS PERMITTED TO REDUCE ITS PRICE AS THE RESULT OF THE CONTRACTING ACTIVITY'S REQUEST FOR BEST AND FINAL OFFERS IS SUMMARILY DENIED, SINCE DISCUSSIONS AND BEST AND FINAL OFFERS THAT INCLUDE PRICE CHANGES ARE A NORMAL ASPECT OF NEGOTIATED PROCUREMENTS.
RON'S WELDING & FABRICATING INC.:
RON'S WELDING & FABRICATING INC. PROTEST THE PROPOSED AWARD OF A CONTRACT FOR CRANE REPAIR TO PACIFIC MARINE SHIP REPAIR UNDER SOLICITATION NO. N00406-84-R-2243, ISSUED BY THE NAVAL SUPPLY SYSTEMS COMMAND. RON'S WELDING COMPLAINS THAT PACIFIC MARINE WAS PERMITTED TO REDUCE ITS PRICE AS THE RESULT OF THE CONTRACTING ACTIVITY'S REQUEST FOR BEST AND FINAL OFFERS, THUS MAKING THE FIRM THE LOW OFFEROR.
IN THEIR INITIAL PROPOSALS, RON'S WELDING OFFERED THE SECOND LOW PRICE FOR THE WORK AT $88,000, AND PACIFIC MARINE OFFERED THE HIGH PRICE AT $158,774. HOWEVER, AS THE RESULT OF THE CONTRACTING ACTIVITY'S SUBSEQUENT REQUEST FOR BEST AND FINAL OFFERS, PACIFIC MARINE REDUCED ITS PRICE BY NEARLY HALF TO $85,008, THUS MAKING IT THE LOW OFFEROR. ONE OTHER OFFEROR REDUCED ITS PRICE SLIGHTLY, RON'S WELDING MADE NO PRICE CHANGE, AND THE FIRM CONSEQUENTLY BECAME THE FOURTH LOW OFFEROR.
RON'S WELDING BELIEVES THAT IT WAS SOMEHOW IMPROPER FOR THE CONTRACTING ACTIVITY TO PERMIT PACIFIC MARINE TO MAKE SUCH A SIGNIFICANT CHANGE IN ITS INITIAL OFFERED PRICE. WE POINT OUT, HOWEVER, THAT THIS WAS A NEGOTIATED PROCUREMENT, IN WHICH DISCUSSIONS AND BEST AND FINAL OFFERS THAT MAY INCLUDE PRICE CHANGES ARE NORMALLY CONTEMPLATED. FEDERAL ACQUISITION REGULATION, SECS. 15.610, 15.611, 48 FED.REG. 42,102, 42,202, 42,203, (1983) (TO BE CODIFIED AT 48 C.F.R. SECS. 15.610, 15.611).
THEREFORE, IT WAS PROPER FOR THE CONTRACTING ACTIVITY HERE TO REQUEST BEST AND FINAL OFFERS AND FOR PACIFIC MARINE TO REVISE ITS INITIAL PRICE IN ITS BEST AND FINAL OFFER AS A RESULT.
THE PROTEST IS SUMMARILY DENIED.