B-140830, NOV. 12, 1959

B-140830, NOV. 12, 1959

TO MANHATTAN LIGHTING EQUIPMENT COMPANY, INC.:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 21, 1959, AND ITS ENCLOSURE, PROTESTING AGAINST THE REJECTION OF YOUR BID AND THE AWARD TO A HIGHER BIDDER UNDER INVITATION FOR BIDS NO. ENG-04-203-60 169.

THE INVITATION WAS ISSUED BY THE U.S. ARMY ENGINEER DISTRICT, SAN FRANCISCO, ON AUGUST 20, 1959, REQUESTING BIDS--- TO BE OPENED AUGUST 31, 1959--- FOR FURNISHING SEVEN TRANSFORMERS. IN RESPONSE TO THE INVITATION, YOU SUBMITTED THE LOW BID IN THE AMOUNT OF $2,570.39. THE EIGHT OTHER BIDS RECEIVED RANGED FROM $2,602 TO $3,210. ON AUGUST 31, 1959, AWARD WAS MADE TO ESCO MANUFACTURING COMPANY, THE SECOND LOW BIDDER, YOUR BID BEING REJECTED FOR REASONS STATED ON THE ABSTRACT OF BIDS AS FOLLOWS:

"LOW BID OF MANHATTAN MFG. CO. REJECTED BASED ON FACT THAT HE IS NOT A REGULAR DEALER FOR HEAVY DUTY TRANSFORMERS; PRECEDENCE CONTAINED IN INVITATION 04-203-58-465 WHEREIN THE CHIEF OF ENGINEERS AUTHORIZED THE REJECTION OF SUBJECT VENDOR AS NOT QUALIFYING AS SOURCE OF SUPPLY AS DEFINED BY ASPR 1-201.9 BASED UPON PREAWARD SURVEY PREPARED BY NEW YORK DISTRICT.'

IT IS STATED IN THE ADMINISTRATIVE REPORT THAT A REQUISITION WAS RECEIVED FROM THE MUTUAL SECURITY DIVISION, OVERSEAS SUPPLY AGENCY, ON JULY 24, 1959, FOR THE TRANSFORMERS, FOR WHICH FUNDS WERE NOT AVAILABLE AFTER AUGUST 31, 1959. NECESSARY INFORMATION CLARIFYING THE SPECIFICATIONS WAS NOT RECEIVED UNTIL AUGUST 19, 1959, AND THE INVITATION FOR BIDS WAS ISSUED AUGUST 20. WHEN THE BIDS WERE OPENED AND EVALUATED ON AUGUST 31 AND IT WAS NOTED THAT YOU WERE LOW BIDDER, IT WAS TOO LATE TO OBTAIN PREAWARD INFORMATION FROM THE OFFICE OF THE DISTRICT ENGINEER, NEW YORK. REFERENCE WAS THEN MADE TO A PREAWARD SURVEY PREPARED BY THE DISTRICT ENGINEER, NEW YORK, ON JUNE 7, 1958, SHOWING THAT YOU WERE NOT THEN CONSIDERED A QUALIFIED SOURCE OF SUPPLY FOR TRANSFORMERS SIMILAR TO THOSE COVERED BY INVITATION NO. ENG-04-203 60-169. AUTHORITY FOR REJECTION OF YOUR BID ON IDENTICAL EQUIPMENT HAD BEEN GRANTED BY THE OFFICE OF CHIEF OF ENGINEERS BY A MESSAGE DATED JUNE 7, 1958.

FOR THE REASONS ABOVE INDICATED AND IN ORDER TO OBLIGATE THE FUNDS PRIOR TO SEPTEMBER 1, AWARD WAS MADE TO THE SECOND LOW BIDDER ON AUGUST 31. IS REPORTED THAT THE TRANSFORMERS WERE DELIVERED ON SEPTEMBER 21, 1959.

IN VIEW OF THE FOREGOING, THERE IS NOT PERCEIVED ANY ACTION WHICH OUR OFFICE PROPERLY MAY TAKE IN THE MATTER. IT IS UNFORTUNATE THAT LACK OF TIME PREVENTED THE ADMINISTRATIVE OFFICE FROM OBTAINING PREAWARD INFORMATION WHICH YOU STATE WOULD HAVE SHOWN YOU TO BE A QUALIFIED SOURCE OF SUPPLY FOR TRANSFORMERS SUCH AS THOSE COVERED BY THE INVITATION, AND IT IS OUR VIEW THAT ADMINISTRATIVE ACTION SHOULD BE TAKEN TO AVOID SIMILAR SITUATIONS IN THE FUTURE IF REASONABLY POSSIBLE. OUR VIEWS IN THIS REGARD WILL BE BROUGHT TO THE ATTENTION OF THE DEPARTMENT BUT NO FURTHER ACTION WILL BE TAKEN IN THE MATTER BY OUR OFFICE.

IT IS SUGGESTED THAT IN SUBMITTING A BID TO AN AGENCY WHICH, TO YOUR KNOWLEDGE, HAS NOT THERETOFORE REGARDED YOU AS A QUALIFIED SOURCE OF SUPPLY, IT MIGHT BE DESIRABLE FOR YOU TO INFORM THE AGENCY OF ANY NEW FACTS DEEMED AS ESTABLISHING YOUR STATUS AS A QUALIFIED BIDDER.

WITH RESPECT TO THE AWARD TO PHILLIPS AND EDWARDS FOR TRANSFORMERS UNDER A PREVIOUS PROCUREMENT, REFERRED TO IN YOUR LETTER, IT IS STATED IN THE ADMINISTRATIVE REPORT THAT AWARD WAS MADE AFTER PREAWARD INFORMATION WAS RECEIVED BY THE CONTRACTING OFFICER THAT PHILLIPS AND EDWARDS QUALIFIED AS A REGULAR DEALER IN ACCORDANCE WITH THE PROVISIONS OF THE WALSH-HEALEY ACT.