B-140652, NOV. 9, 1959

B-140652: Nov 9, 1959

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INCORPORATED: REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 1. AFTER OPENING OF THE BIDS THE PROCUREMENT OFFICIALS CONCLUDED THAT THE TERMS OF THE INVITATION WERE INADEQUATE IN THAT NO METHOD WAS PRESCRIBED BY WHICH THE BIDS WERE TO BE EVALUATED. BECAUSE OF THOSE DEFICIENCIES THE INVITATION WAS CANCELLED AND IN SUBSTITUTION THEREOF. WAS ISSUED UNDER DATE OF SEPTEMBER 1. WITH RESPECT TO YOUR SPECIFIC QUESTION REGARDING SUCH ACTION YOUR ATTENTION IS INVITED TO PARAGRAPH 8 (B) OF THE TERMS AND CONDITIONS OF THE INVITATION FOR BIDS WHICH STIPULATES THAT THE GOVERNMENT RESERVES THE RIGHT TO REJECT ANY OR ALL BIDS. IN REGARD TO YOUR ALLEGATION THAT HERETOFORE CONTRACTS HAVE BEEN NEGOTIATED BY THE WALTER REED ARMY MEDICAL CENTER WITH OTHER SUPPLIES WITHOUT ISSUING BIDS.

B-140652, NOV. 9, 1959

TO BYRON MOTION PICTURES, INCORPORATED:

REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 1, 1959, PROTESTING AGAINST THE PROCUREMENT PROCEDURES FOLLOWED BY THE WALTER REED ARMY MEDICAL CENTER IN CONNECTION WITH THE PURCHASE OF MOTION PICTURE SUPPLIES AND SERVICES. ALSO, YOU WISH TO BE ADVISED AS TO THE AUTHORITY FOR REJECTING ALL BIDS RECEIVED AND READVERTISING FOR A PARTICULAR PROCUREMENT, AND WHETHER SUCH SUPPLIES AND SERVICES LEGALLY MAY BE OBTAINED BY THAT AGENCY FROM THE DEPARTMENT OF AGRICULTURE.

THE RECORD BEFORE US DISCLOSES THAT BY INVITATION FOR BIDS NO. MD 49-024- 59-98, DATED JUNE 7, 1959, WALTER REED ARMY MEDICAL CENTER SOUGHT PROPOSALS ON THE PROCESSING OF MOTION PICTURE AND STILL FILM AND RELATED SERVICES. AFTER OPENING OF THE BIDS THE PROCUREMENT OFFICIALS CONCLUDED THAT THE TERMS OF THE INVITATION WERE INADEQUATE IN THAT NO METHOD WAS PRESCRIBED BY WHICH THE BIDS WERE TO BE EVALUATED. BECAUSE OF THOSE DEFICIENCIES THE INVITATION WAS CANCELLED AND IN SUBSTITUTION THEREOF, INVITATION FOR BIDS NO. MD 49-024-60-18, WAS ISSUED UNDER DATE OF SEPTEMBER 1, 1959, WHICH STIPULATED THAT ALL BIDS WOULD BE EVALUATED ON THE BASIS OF THE AGGREGATE ESTIMATED QUANTITIES SET FORTH THEREIN AND THAT AWARD WOULD BE MADE ON AN ALL OR NONE BASIS. IN OUR OPINION SUCH PROVISION OVERCOMES THE DEFICIENCIES IN THE TERMS OF THE PREVIOUS INVITATION.

WITH RESPECT TO YOUR SPECIFIC QUESTION REGARDING SUCH ACTION YOUR ATTENTION IS INVITED TO PARAGRAPH 8 (B) OF THE TERMS AND CONDITIONS OF THE INVITATION FOR BIDS WHICH STIPULATES THAT THE GOVERNMENT RESERVES THE RIGHT TO REJECT ANY OR ALL BIDS. AS TO THE STATUTORY AUTHORITY FOR THE PROCUREMENT OF SUCH SERVICES FROM THE DEPARTMENT OF AGRICULTURE, SEE GENERALLY THE PROVISIONS OF 31 U.S.C. 686, WHICH AUTHORIZES THE EXCHANGE OF GOODS AND SERVICES BETWEEN DEPARTMENTS AND AGENCIES OF THE GOVERNMENT.

IN REGARD TO YOUR ALLEGATION THAT HERETOFORE CONTRACTS HAVE BEEN NEGOTIATED BY THE WALTER REED ARMY MEDICAL CENTER WITH OTHER SUPPLIES WITHOUT ISSUING BIDS, THE PRESENT CONTRACTING OFFICER FOR THE AGENCY STATED IN A REPORT DATED SEPTEMBER 23, 1959, THAT THE CONTRACTS FOR THE PREVIOUS THREE YEARS, WHICH WERE IDENTIFIED, WERE OBTAINED THROUGH FORMAL ADVERTISING.

IN VIEW OF THE FOREGOING, WE FIND NO LEGAL BASIS FOR QUESTIONING THE ACTION TAKEN BY THE ADMINISTRATIVE OFFICE IN CONNECTION WITH THE SUBJECT PROCUREMENT.