B-154593, SEP. 22, 1964

B-154593, SEP. 22, 1964

TO FREEDMAN, LEVY, KROLL AND SIMONDS:

WE REFER TO YOUR LETTERS OF AUGUST 20 AND 10, 1964, IN BEHALF OF THE EIMCO CORPORATION, EIMCO'S LETTER OF AUGUST 5, 1964, AND THE OTHER CORRESPONDENCE, RELATIVE TO THE EVALUATION OF TRANSPORTATION COSTS BY THE DEPARTMENT OF THE ARMY ON ITEM NO. 1, 54 TRACTOR UNITS, UNDER INVITATION FOR BIDS NO. AMC (T/-11-184-64-444 (A), ISSUED JUNE 5, 1964.

THE PURCHASE DESCRIPTION FOR ITEM NO. 1 READS AS FOLLOWS:

"1 TRACTOR, FULL TRACKED, LOW SPEED, DIESEL ENGINE DRIVEN; TURBOCHARGER, POWER SHIFT TRANSMISSION; MINIMUM 25,000 POUNDS DRAWBAR PULL; OSCILLATING TRACK, 74 MINIMUM GAGE; WITH ANGLEDOZER, HYDRAULIC; WINCH, REVERSIBLE, REAR, 1 DRUM; CATERPILLAR MODEL NUMBER D7 OR EQUAL; INTERNATIONAL HARVESTER TD-20 OR EQUAL; ALLIS-CHALMERS MODEL NUMBER HD 16P OR EQUAL; EIMCO MODEL NUMBER 106C OR EQUAL, AND THE HEREINAFTER SET FORTH "GENERAL REQUIREMENTS.'"

BIDS WERE REQUESTED F.O.B. ORIGIN, AND THE DESTINATION POINT, FOR PURPOSES OF BID EVALUATION, WAS SPECIFIED AS BOMBAY, INDIA. BID OPENING WAS HELD ON JUNE 24, 1964. THE TWO LOW BIDS ON ITEM NO. 1 WERE $28,010 PER UNIT (AFTER DISCOUNT) FROM INTERNATIONAL HARVESTER AND $28,115 FROM THE EIMCO CORPORATION. (A THIRD BIDDER OFFERED A CONSIDERABLY HIGHER PRICE PER UNIT.) EIMCO INDICATED SALT LAKE CITY, UTAH, AS ITS SHIPPING POINT, WHILE I-H INDICATED ITS FACTORY AT CHICAGO, ILLINOIS, AS ITS SHIPPING POINT.

PAGE NO. 18 OF THE INVITATION STATED THAT:

"BID EVALUATION: BIDS WILL BE EVALUATED ON THE BASIS OF LOWEST OVERALL COST TO THE GOVERNMENT DELIVERED TO THE ULTIMATE OVERSEAS DESTINATION AND CONSISTENT WITH REQUIREMENTS. HANDLING AND TRANSPORTATION COSTS, TO THE ULTIMATE DESTINATION, FROM THE SPECIFIED COMMERCIAL PORTS, PACKING CENTERS OR ARMY TERMINALS, AS SET FORTH BELOW, WILL BE CONSIDERED IN DETERMINING THE LOWEST OVERALL COST.

"WHEN BIDS ARE SUBMITTED ON AN F.O.B. ORIGIN BASIS, THE MOST ECONOMICAL MODE OF COMMERCIAL TRANSPORTATION CONSISTENT WITH MILITARY REQUIREMENTS AND AS DETERMINED BY THE GOVERNMENT, BETWEEN THE BIDDER'S SHIPPING POINT AS SET FORTH BY THE BIDDER HEREIN AND THE FOLLOWING COMMERCIAL PORTS, PACKING CENTERS OR ARMY TERMINALS WILL BE CONSIDERED IN DETERMINING THE LOWEST COST TO THE GOVERNMENT.

TABLE COMMERCIAL PORTS, PACKING CENTERS PORT HANDLING AND OCEAN TRANSPORTATION

OR ARMY TERMINALS COST PER CUBIC FOOT

BROOKLYN, NEW YORK .994

SAN FRANCISCO, CALIFORNIA .948" CLAUSE A (NOTE 7) ON PAGE 5 OF THE INVITATION STATED AS FOLLOWS:

"SPECIAL NOTE: TRANSPORTATION DATA

"A. BIDDER, IN ADDITION TO THE OTHER PROVISIONS OF THIS BID, MUST FURNISH THE TRANSPORTATION DATA SET FORTH IN HPC FORM 4059A WHICH IS NECESSARY IN EVALUATING THE GOVERNMENT'S COST OF TRANSPORTATION AND FOR USE IN THE SELECTION OF THE MODE OF SHIPMENT. FAILURE TO FURNISH THE DATA REQUESTED WILL CAUSE THE BID TO BE NON-RESPONSIVE.'

EIMCO INCLUDED THE FOLLOWING DATA ON HPC FORM 4059A UNDER "DIMENSIONS AND WEIGHT PER UNIT" FOR ITEM NO. 1:

TABLE

LENGTH - 19 FT.-0 IN.

WIDTH - 12 FT.-6 IN.

HEIGHT - 10 FT.-1 IN.

SHIPPING WEIGHT - 43,100 LBS.

THE I-H BID SHOWED DIMENSIONS FOR THREE PACKAGES ON HPC FORM 4059A; A TRACTOR WITH WINCH, A "C" FRAME AND A BLADE WITH STRUTS. IN THIS CONNECTION, PAGE 9 OF THE INVITATION STATED:

"/1) PRESERVE AND PACKAGE IN ACCORDANCE WITH PARAGRAPH 3.2 AND 3.4.1 OF SPECIFICATION MIL-T-3351B WITH THE FOLLOWING ADDITIONS AND EXCEPTIONS:

"NOTE: ONLY THOSE EXHAUST STACKS, LAMPS, LAMP GUARDS AND "C" FRAME TRUNNIONS MAY BE DISASSEMBLED TO THE EXTENT NECESSARY TO REDUCE SHIPPING CUBE AND SHALL BE PACKED WITH OTHER ITEMS PER PARAGRAPH 3.4.1.28.1. BULL GRADER BLADES (WITH STRUTS ATTACHED) AND "C" FRAMES SHALL BE SHIPPED UNATTACHED AND UNBOXED.'"

EIMCO ADDED THE FOLLOWING NOTE TO ITS BID:

"NOTE. THE MOST ECONOMICAL TRANSPORTATION BETWEEN SALT LAKE CITY AND INDIA IS VIA PORT OF SAN FRANCISCO, CALIFORNIA, OR OTHER WEST COAST PORTS. THE MOST ECONOMICAL INLAND SHIPPING RATE BETWEEN SALT LAKE CITY AND THE WEST COAST PORTS, AS SHOWN BY THE EIMCO CORPORATION, IS $1.06 WT., AND IT IS SUGGESTED THAT THIS RATE BE CONSIDERED IN EVALUATION OF THIS BID.

"FOR PURPOSES OF HEAVY LIFT CHARGE DETERMINATION ONLY ONE PIECE PER UNIT WILL WEIGH OVER 8960 POUNDS AND THIS PIECE WILL WEIGH 32300 POUNDS.'

IN EVALUATING EIMCO'S OCEAN TRANSPORTATION, ARMY USED THE DIMENSIONS SUPPLIED BY THE BIDDER ON HPC FORM 4059A, TOTALLING 2394.8 CUBIC FEET, AND IT MULTIPLIED THIS FIGURE BY ?948 (FOR PORT OF SAN FRANCISCO) WHICH TOTALLED TO $2,270.27 PER UNIT FOR PORT AND OCEAN TRANSPORTATION. EIMCO'S INLAND TRANSPORTATION COST WAS COMPUTED TO BE $456.86 PER UNIT (43,100 LB. AT $1.06 CWT.).

I-H'S SHIPMENT IN 3 PACKAGES, AS INDICATED ON FORM 4059A, TOTALLED 1297.6 CUBIC FEET, AND ITS PORT AND OCEAN COSTS WERE CALCULATED FROM PORT OF BROOKLYN, NEW YORK (1297.6 CU.FT. AT $ .994 PER CU.FT.) AT $1,289.81 PER UNIT. INLAND FREIGHT WAS COMPUTED TO BE $325.38 PER UNIT. THUS, FROM BASE BIDS OF $23,010 BY I-H AND $28,115 BY EIMCO, ARMY HAS COMPUTED FINAL EVALUATED PER UNIT BIDS OF $29,652.34 FOR I-H AND $30,842.13 FOR EIMCO.

BY TELEGRAMS OF JUNE 25, 1964 AND JUNE 29, 1964 (AFTER THE JUNE 24 BID OPENING) EIMCO ADVISED ARMY THAT IT WISHED TO CLARIFY THE WEIGHT AND DIMENSIONAL INFORMATION IN ITS BID TO SPECIFY SEPARATE PACKAGING FOR THE TRACTOR WITH WINCH, THE BLADE, AND THE "C" FRAME, THEREBY RESULTING IN TOTAL CUBAGE OF 1183.4. EIMCO FURTHER ADVISED THAT INLAND TRANSPORTATION COSTS FROM SALT LAKE CITY TO SAN FRANCISCO PORT COULD BE REDUCED, BY APPLICATION OF "FABRICATION IN TRANSIT" RATES ON BLADES AND "C" FRAMES, FROM $456.86 TO $406.36 PER TRACTOR. ALSO, EIMCO CHALLENGED WHETHER THE OCEAN RATES LISTED IN THE INVITATION WERE THE LOWEST AVAILABLE FOR OVERSEAS SHIPMENTS FROM PORT OF SAN FRANCISCO.

YOU CONCLUDE THAT UNDER A PROPER EVALUATION OF TRANSPORTATION COSTS EIMCO WOULD BE THE LOW BIDDER ON ITEM NO. 1. WE NOTE, HOWEVER, THAT EVEN USING THE INLAND AND OCEAN WATER SUGGESTED BY EIMCO, I-H REMAINS THE LOW BIDDER IF EIMCO'S OCEAN FREIGHT IS COMPUTED ON THE BASIS OF THE 2394.8 CUBIC FEET SHIPPING DIMENSIONS. YOU CONTEND THAT THE DIMENSIONS INSERTED BY EIMCO ON ITS BID FORM 4059A SHOULD NOT BE USED IN COMPUTING OCEAN FREIGHT, SINCE FORM 4059A ONLY REFERS TO INLAND TRANSPORTATION; THAT THE INVITATION FAILED TO CALL FOR A BREAKDOWN OF CUBIC DIMENSIONS NECESSARY TO COMPUTE OCEAN FREIGHT, AND THAT THE INFORMATION SUBMITTED BY EIMCO AFTER THE BID OPENING SHOULD BE USED IN COMPUTING EIMCO'S TRANSPORTATION COSTS. YOU REFER TO THE NOTE IN EIMCO'S BID (PAGE 7) INDICATING THAT EIMCO INTENDED TO BREAK DOWN ITS PACKAGING FOR OVERSEAS SHIPMENT, AND YOU SAY THAT THE BREAK-DOWN INFORMATION SUBMITTED BY EIMCO AFTER BID OPENING IS VERIFIABLE FROM THE DESCRIPTIVE DATA ATTACHED TO EIMCO'S BID.

WE FIND THAT THE INVITATION REQUIRED THE BIDDER TO INSERT ON BID FORM 4059A ALL THE TRANSPORTATION DATA WHICH WOULD BE NEEDED TO EVALUATE THE BID. THE INVITATION STATED THAT BIDS WOULD BE EVALUATED ON THE BASIS OF BID PRICES PLUS GOVERNMENT TRANSPORTATION COST VIA LAND OR WATER OR ANY COMBINATION THEREOF (CLAUSE A, PAGE 7 OF THE INVITATION). BIDDERS WERE INSTRUCTED TO FURNISH THE TRANSPORTATION DATA SET FORTH ON HPC FORM 4059A WHICH WAS STATED TO BE NECESSARY TO EVALUATE THE GOVERNMENT'S COST OF TRANSPORTATION. (CLAUSE A, PAGE 5 OF THE INVITATION). FURTHER, THE NOTE ON PAGE 9 OF THE INVITATION STATED THAT BLADES (WITH STRUTS ATTACHED) AND "C" FRAMES SHOULD BE SHIPPED UNATTACHED TO REDUCE SHIPPING CUBE. SINCE THE WEIGHT AND DIMENSIONS OF THE PACKAGES WILL DETERMINE THE TRANSPORTATION COSTS, IT APPEARS TO US THAT BIDDERS WERE REQUIRED TO FURNISH ON FORM 4059A THE WEIGHT AND DIMENSIONS OF EACH PACKAGE COMPRISING THE ITEM.

IT MAY BE THAT THE WEIGHT AND DIMENSIONS OF EACH OF THE 3 PACKAGES COMPRISING ITEM NO. 1 CAN BE DETERMINED FROM EIMCO'S DESCRIPTIVE DATA, ARMY REPORTS THAT AN APPROXIMATE ESTIMATION CAN BE MADE. NEVERTHELESS, EIMCO'S BID MUST BE EVALUATED ON THE BASIS OF THE WEIGHT AND DIMENSIONS STATED BY THE BIDDER IN ITS BID. CLAUSE G, PAGE NO. 5 OF THE INVITATION, PROVIDES THAT THE GOVERNMENT WILL BE ENTITLED TO A REDUCTION IN CONTRACT PRICE IF THE CHARACTERISTICS OF ANY DELIVERED ITEM UNDER THE CONTRACT DIFFER FROM THOSE INDICATED, CAUSING AN INCREASE IN GOVERNMENT TRANSPORTATION COSTS. IN EFFECT, CLAUSE G REQUIRES THE BIDDER TO GUARANTEE ITS INDICATED WEIGHT AND DIMENSIONAL CHARACTERISTICS. EIMCO'S BID GUARANTEES THE WEIGHT AND DIMENSIONS STATED ON HPC FORM 4059A. HENCE, WHILE EIMCO WOULD SHIP ITEM NO. 1 IN 3 PACKAGES, THE GOVERNMENT WOULD HAVE TO ABSORB OCEAN FREIGHT ON ALL SUCH SHIPMENTS UP TO 2394.8 CUBIC FEET. UNDER THE CIRCUMSTANCES, THE BID IS PROPERLY EVALUATED FOR OCEAN FREIGHT ON THE BASIS OF THE GUARANTEED CUBAGE OF 2394.8. 39 COMP. GEN. 684,694; SEE B-153323, MAY 7, 1964. INFORMATION SUBMITTED BY EIMCO AFTER THE BID OPENING MAY NOT BE USED TO CHANGE, MODIFY OR CORRECT THE EVALUATION REQUIRED BY THE EIMCO BID. B-151561, JUNE 21, 1963 (42 COMP. GEN. 725); 38 COMP. GEN. 819. CONSEQUENTLY, I-H IS PROPERLY EVALUATED AS THE LOW BIDDER.

EIMCO FURTHER PROTESTS THAT I-H FAILED TO FURNISH DESCRIPTIVE DATA ON THE WINCH THAT IT WILL SUPPLY AS A PART OF ITS TRACTOR. I-H STATES THAT ONLY THE CARCO G80-PS (POWER SHIFT) WINCH MADE BY THE PACIFIC CAR AND FOUNDRY COMPANY IS APPROVED BY I-H FOR USE ON THE NAMED MODEL, INTERNATIONAL HARVESTER TD 20 TRACTOR, EIMCO STATES, HOWEVER, THAT THERE ARE A NUMBER OF WINCHES WHICH CAN BE USED WITH THE TD 20 TRACTOR, AND IT HAS ENCLOSED A PHOTOSTAT OF A NOTICE APPEARING IN THE "BRITISH COLUMBIA LUMBERMAN" ISSUE OF JULY 1964, SHOWING THE INTERNATIONAL HARVESTER TD 20 FITTED WITH A GEARMATIC MODEL 22 HYDRAULIC WINCH HAVINGA LINE PULL OF 22,000 POUNDS, AS COMPARED WITH THE 80,000 POUNDS PULL OF THE CARCO G-80 WINCH.

I-H ADVISES THAT THE GEARMATIC MODEL 22 WINCH SHOWN IN THE CITED LITERATURE REFERS TO A WINCH WHICH IS MERELY MOUNTED "PIGGY-BACK" FASHION ON THE CARCO G80-PS WINCH, AND THAT THE "CARCO" IS THE ONLY WINCH USED ON THE I-H BRAND NAMED TRACTOR.

IT APPEARS FROM THE RECORD THAT I-H ADVERTISES AND FURNISHES ONLY THE CARCO G-80 WINCH AS AN ATTACHMENT TO ITS TD-20 TRACTOR. ARMY REPORTS THAT: "IT IS WELL KNOWN IN THE TRADE THAT THE CARCO WINCH PRODUCED BY PACIFIC CAR AND FOUNDRY COMPANY IS THE ONLY AVAILABLE WINCH CAPABLE OF USE WITH AND FURNISHED BY I-H WHEN ORDERED WITH ITS TD-20 POWER SHIFT TRACTOR.' UNDER THE CIRCUMSTANCES, WE CONCLUDE THAT I-H WAS NOT REQUIRED TO FURNISH ANY DESCRIPTIVE DATA ON THE WINCH.