B-134835, MAR. 14, 1958

B-134835: Mar 14, 1958

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TO THE SECRETARY OF THE AIR FORCE: REFERENCE IS MADE TO LETTER OF FEBRUARY 24. WHICH WAS PREVIOUSLY CANCELED. THE FILE SUBMITTED TO US FOR USE IN CONSIDERING THE MATTER DISCLOSES THAT FOUR BIDS WERE RECEIVED IN RESPONSE TO THE FOREGOING INVITATION WHICH WERE OPENED ON OCTOBER 22. AFTER THE BIDS WERE ABSTRACTED AND THE QUOTATIONS PUBLICIZED. THE PROCUREMENT AUTHORITIES DETERMINED THAT THE INVITATION WAS DEFECTIVE SINCE IT FAILED TO SPECIFY THAT THE BEARING SETS WHICH WERE BEING PROCURED MUST COME FROM A SOURCE PREVIOUSLY APPROVED BY HUGHES AIRCRAFT COMPANY. FOR THAT REASON ALL BIDS WERE REJECTED AND THE PROCUREMENT READVERTISED. WAS AT THAT TIME AN APPROVED SOURCE. THAT THE CANCELLATION OF ALL BIDS UNDER THE FIRST INVITATION WAS UNWARRANTED.

B-134835, MAR. 14, 1958

TO THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO LETTER OF FEBRUARY 24, 1958, AND ENCLOSURES, FROM MR. DUDLEY C. SHARP, ASSISTANT SECRETARY OF THE AIR FORCE, REQUESTING A DECISION AS TO WHETHER INVITATION FOR BIDS NO. 40-604-58 1628, DATED SEPTEMBER 16, 1957, WHICH WAS PREVIOUSLY CANCELED, MAY BE REINSTATED AND AWARD MADE TO THE LOWEST RESPONSIBLE AND RESPONSIVE BIDDER.

THE FILE SUBMITTED TO US FOR USE IN CONSIDERING THE MATTER DISCLOSES THAT FOUR BIDS WERE RECEIVED IN RESPONSE TO THE FOREGOING INVITATION WHICH WERE OPENED ON OCTOBER 22, 1957. AFTER THE BIDS WERE ABSTRACTED AND THE QUOTATIONS PUBLICIZED, THE PROCUREMENT AUTHORITIES DETERMINED THAT THE INVITATION WAS DEFECTIVE SINCE IT FAILED TO SPECIFY THAT THE BEARING SETS WHICH WERE BEING PROCURED MUST COME FROM A SOURCE PREVIOUSLY APPROVED BY HUGHES AIRCRAFT COMPANY.

FOR THAT REASON ALL BIDS WERE REJECTED AND THE PROCUREMENT READVERTISED, NOTWITHSTANDING THE ORIGINAL INVITATION INDICATED THAT THE APPARENT LOWEST RESPONSIVE AND RESPONSIBLE BIDDER, INDUSTRIAL TECTONICS, INCORPORATED, WHO QUOTED A UNIT PRICE OF $13.25, WAS AT THAT TIME AN APPROVED SOURCE. RESPONSE TO THE SECOND INVITATION NO. 40-604-58-1834, ISSUED UNDER DATE OF DECEMBER 18, 1957, INDUSTRIAL TECTONICS, INCORPORATED, QUOTED THE SAME UNIT PRICE OF $13.25, WHEREAS THE MARLIN-ROCKWELL CORPORATION, ALSO AN APPARENT APPROVED SOURCE, REDUCED ITS BID OF $20.80 EACH UNDER THE FIRST INVITATION, TO $13.05, AND $12.92, UNDER THE READVERTISEMENT.

WE CONCUR WITH THE OPINION EXPRESSED BY THE ASSISTANT SECRETARY OF THE AIR FORCE, IN HIS SUBMISSION OF FEBRUARY 24, 1958, THAT THE CANCELLATION OF ALL BIDS UNDER THE FIRST INVITATION WAS UNWARRANTED. THE CASES REFERRED TO BY THE ASSISTANT SECRETARY, REPORTED IN 34 COMP. GEN. 535, AND 36 ID. 62, ALSO INVOLVED THE WITHDRAWAL OF THE PROCUREMENT REQUISITION AND THE CANCELLATION OF ALL BIDS THROUGH INADVERTENCE OF ERROR, AND IT WAS HELD UNDER THE AUTHORITIES CITED IN THOSE DECISIONS THAT BIDS IMPROPERLY REJECTED UNDER SUCH CIRCUMSTANCES MAY BE REINSTATED AND AWARD MADE ON THE BASIS OF THE ORIGINAL INVITATION.

THESE PRINCIPLES APPEAR TO BE FOR APPLICATION IN THIS CASE. CONSEQUENTLY, WE PERCEIVE NO OBJECTION TO CONSIDERING THE BIDS SUBMITTED UNDER THE FIRST INVITATION.

THE ENCLOSURES TRANSMITTED WITH THE ASSISTANT SECRETARY'S LETTER OF FEBRUARY 24, 1958, EXCEPT THE PROTESTING LETTERS DATED JANUARY 8, 1958, FROM CONGRESSMAN CLYDE DOYLE AND INDUSTRIAL TECTONICS, INCORPORATED, ARE RETURNED HEREWITH.