A-77579, AUGUST 18, 1936, 16 COMP. GEN. 149

A-77579: Aug 18, 1936

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ADVERTISING - BIDS - AWARD ON BASIS OF ELEMENT NOT MENTIONED IN SPECIFICATIONS WHERE BIDS ARE REQUESTED F.O.B. YOU HAVE REPORTED THAT THE AWARD WAS MADE TO THE LOW BIDDER. WHILE THE DELIVERED COST TO THE GOVERNMENT IS ALWAYS A MATTER FOR CONSIDERATION IN DETERMINING WHICH. IS THE LOWEST BID RECEIVED. ALTHOUGH YOU HAVE STATED THE BID ACCEPTED WAS THE LOWEST RECEIVED. THIS OFFICE WILL RAISE NO FURTHER QUESTION AS TO THE ADMINISTRATIVE ACTION TAKEN IN THIS CASE.

A-77579, AUGUST 18, 1936, 16 COMP. GEN. 149

ADVERTISING - BIDS - AWARD ON BASIS OF ELEMENT NOT MENTIONED IN SPECIFICATIONS WHERE BIDS ARE REQUESTED F.O.B. CONTRACTOR'S PLANT, SHIPMENTS TO BE MADE TO A NAMED DESTINATION, AWARD SHOULD NOT BE MADE ON AN F.O.B. DESTINATION BASIS, ALTHOUGH MORE FAVORABLE TO THE GOVERNMENT, THE PROCEDURE REQUIRED IN THE PUBLIC INTEREST, AND IN FAIRNESS TO ALL BIDDERS, BEING THE SOLICITATION OF BIDS ON AN F.O.B. DESTINATION, AS WELL AS F.O.B. FACTORY, BASIS. RULE STATED IN 10 COMP. GEN. 402 MODIFIED FOR FUTURE ADVERTISING.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE SECRETARY OF WAR, AUGUST 18, 1936:

CONSIDERATION HAS BEEN GIVEN TO YOUR REPORT OF JULY 23, 1936, IN RESPONSE TO MY REQUEST OF JULY 1, 1936, CONCERNING A PROTEST OF THE LANDIS TOOL CO., WAYNESBORO, PA., AGAINST THE TERMS OF CIRCULAR PROPOSAL 36-915, ISSUED BY THE WRIGHT FIELD, DAYTON, OHIO, AIR CORPS, MATERIAL DIVISION, FOR BIDS FOR THE DELIVERY OF FOUR GRINDERS IN ACCORDANCE WITH THE TERMS OF THE ADVERTISED SPECIFICATIONS. ALSO, THERE HAS BEEN RECEIVED A PROTEST DATED JULY 2, 1936, FROM THE SEIFREAT-ELSTAD MACHINERY CO., OF DAYTON, OHIO, AGAINST THE REJECTION OF ITS BID AND THE TERMS OF THE SPECIFICATIONS.

THE ADVERTISED SPECIFICATIONS REQUESTED BIDS F.O.B. CONTRACTOR'S PLANT, WITH THE STATEMENT THAT SHIPMENTS WOULD BE MADE TO AIR CORPS STATIONS AT SCOTT FIELD, AND YOU HAVE REPORTED THAT THE AWARD WAS MADE TO THE LOW BIDDER, COST OF TRANSPORTATION CONSIDERED FROM THE F.O.B. SHIPPING POINT NAMED BY THE BIDDER TO DESTINATION, SUCH AWARD BEING IN ACCORDANCE WITH DECISION DATED MARCH 9, 1931, A-35360, 10 COMP. GEN. 402.

WHILE THE DELIVERED COST TO THE GOVERNMENT IS ALWAYS A MATTER FOR CONSIDERATION IN DETERMINING WHICH, IN FACT, IS THE LOWEST BID RECEIVED, THE ADVERTISED SPECIFICATIONS IN THIS CASE, AS NOTED ABOVE, SPECIFICALLY ADVISED ALL PROSPECTIVE BIDDERS THAT BIDS WOULD BE RECEIVED ON THE BASIS OF DELIVERY F.O.B. CONTRACTOR'S PLANT. SUCH BEING THE CASE, AND ALTHOUGH YOU HAVE STATED THE BID ACCEPTED WAS THE LOWEST RECEIVED, COST OF TRANSPORTATION CONSIDERED, THE PUBLIC INTEREST, AS WELL AS FAIRNESS TO ALL BIDDERS, REQUIRES THAT BIDS BE REQUESTED ON THE BASIS OF BOTH F.O.B. BIDDER'S SHIPPING POINT AND F.O.B. GOVERNMENT DESTINATION. SEE A-76944, JULY 14, 1936, 16 COMP. GEN. 21.

IN VIEW OF ALL THE FACTS, THIS OFFICE WILL RAISE NO FURTHER QUESTION AS TO THE ADMINISTRATIVE ACTION TAKEN IN THIS CASE, IF OTHERWISE CORRECT, IN THE REJECTION OF THE BIDS SUBMITTED BY THE LANDIS TOOL CO. AND THE SEIFREAT-ELSTAD MACHINERY CO., BUT THE ADVERTISING PROCEDURE HEREAFTER SHOULD BE MODIFIED TO CONFORM WITH THE ABOVE-STATED RULE IN THIS MATTER.