B-141580, MAR. 7, 1960

B-141580: Mar 7, 1960

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INC.: FURTHER REFERENCE IS MADE TO YOUR LETTERS OF DECEMBER 23. THE INVITATION WAS ISSUED BY THE NAVY PURCHASING OFFICE. IT IS REPORTED. WE WILL ACCEPT ITEM 10 ALONE.'. THE QUOTED STATEMENT WAS INTERPRETED BY THE CONTRACTING OFFICER TO LIMIT ACCEPTANCE TO AN "ALL OR NONE" BASIS OR TO AWARD OF ITEM NO. 10 ALONE. THE BID OF QUEENSBORO TRANSFORMER AND MACHINERY CORPORATION WAS ON AN "ALL OR NONE" BASIS. SINCE THE TWO BIDS ABOVE REFERRED TO WERE CONDITIONED ON RECEIVING THE AWARD ON THE ERRONEOUS ITEM NO. 10. ALL BIDS WERE REJECTED AND A NEW INVITATION (IFB600-1088 60) WAS ISSUED. AWARD WILL GENERALLY BE MADE TO A SINGLE BIDDER ON EACH ENTIRE LOT. THE GOVERNMENT RESERVES THE RIGHT TO AWARD BY ITEM WHEN THE CONTRACTING OFFICER DETERMINES THAT SUCH ACTION IS ADVANTAGEOUS TO THE GOVERNMENT.'.

B-141580, MAR. 7, 1960

TO MANHATTAN LIGHTING EQUIPMENT CO., INC.:

FURTHER REFERENCE IS MADE TO YOUR LETTERS OF DECEMBER 23, 1959, AND JANUARY 12, 1960, WITH ENCLOSURES, PROTESTING AGAINST THE REJECTION OF ALL BIDS AND READVERTISING IN CONNECTION WITH INVITATION FOR BIDS NO. IFB600- 776-60.

THE INVITATION WAS ISSUED BY THE NAVY PURCHASING OFFICE, WASHINGTON, D.C., ON OCTOBER 13, 1959, REQUESTING BIDS--- TO BE OPENED OCTOBER 30, 1959--- FOR FURNISHING 11 ITEMS OF TRANSFORMERS. PARAGRAPH 8 (C) OF "TERMS AND CONDITIONS OF THE INVITATION FOR BIDS" PROVIDED:

"THE GOVERNMENT MAY ACCEPT ANY ITEM OR GROUP OF ITEMS OF ANY BID, UNLESS THE BIDDER QUALIFIES HIS BID BY SPECIFIC LIMITATIONS. UNLESS OTHERWISE PROVIDED IN THE SCHEDULE, BIDS MAY BE SUBMITTED FOR ANY QUANTITIES LESS THAN THOSE SPECIFIED; AND THE GOVERNMENT RESERVES THE RIGHT TO MAKE AN AWARD ON ANY ITEM FOR A QUANTITY LESS THAN THE QUANTITY BID UPON AT THE UNIT PRICES OFFERED UNLESS THE BIDDER SPECIFIES OTHERWISE IN HIS BID.'

IN RESPONSE TO THE INVITATION, YOU SUBMITTED THE LOW BID ON EACH OF THE 11 ITEMS. IT IS REPORTED, HOWEVER, THAT IN YOUR BID YOU INSERTED A STATEMENT AS FOLLOWS:

"ITEMS 1, 2, 3, 4, 5, 6, 7, 8, 9 OR 11 NOT WITHOUT ITEM 10, HOWEVER, WE WILL ACCEPT ITEM 10 ALONE.'

THE QUOTED STATEMENT WAS INTERPRETED BY THE CONTRACTING OFFICER TO LIMIT ACCEPTANCE TO AN "ALL OR NONE" BASIS OR TO AWARD OF ITEM NO. 10 ALONE. THE BID OF QUEENSBORO TRANSFORMER AND MACHINERY CORPORATION WAS ON AN "ALL OR NONE" BASIS. UNDER DATE OF NOVEMBER 2, 1959, THE BUREAU OF SHIPS REQUESTED THE PURCHASING OFFICE TO READVERTISE ITEM NO. 10 TO COVER NO. 100 VA TRANSFORMERS INSTEAD OF NO. 100 KVA AS ERRONEOUSLY SPECIFIED IN THE INVITATION.

BY ITS LETTER DATED NOVEMBER 19, THE BUREAU OF SHIPS ADVISED THE PURCHASING OFFICE THAT AWARD COULD NOT BE RECOMMENDED UNDER INVITATION NO. IFB600-776-60, SINCE THE TWO BIDS ABOVE REFERRED TO WERE CONDITIONED ON RECEIVING THE AWARD ON THE ERRONEOUS ITEM NO. 10. ACCORDINGLY, ALL BIDS WERE REJECTED AND A NEW INVITATION (IFB600-1088 60) WAS ISSUED, CHANGING ITEM NO. 10 FROM NO. 100 KVA TRANSFORMERS TO NO. 100 VA TRANSFORMERS AND ALSO ADDING THE FOLLOWING PROVISION RELATIVE TO AWARD BY LOT:

"SUBJECT TO THE PROVISIONS OF PARAGRAPH EIGHT OF THE TERMS AND CONDITIONS OF THE INVITATION FOR BIDS, AWARD WILL GENERALLY BE MADE TO A SINGLE BIDDER ON EACH ENTIRE LOT. HOWEVER, THE GOVERNMENT RESERVES THE RIGHT TO AWARD BY ITEM WHEN THE CONTRACTING OFFICER DETERMINES THAT SUCH ACTION IS ADVANTAGEOUS TO THE GOVERNMENT.'

THE FILE SHOWS THAT UNDER THE NEW INVITATION AWARD WAS MADE TO YOU ON ITEMS NOS. 3, 4, 5, 8 AND 9; TO WHITE PLAINS ELECTRICAL SUPPLY CO., INC., ON ITEMS NOS. 1, 2, 6 AND 7 AND TO INTERNATIONAL GENERAL ELECTRIC COMPANY, INC., ON ITEMS NOS. 10 AND 11.

IT IS OUR VIEW THAT THE ABOVE-QUOTED STATEMENT WHICH YOU SUBMITTED WITH YOUR BID UNDER THE FIRST INVITATION IS SUSCEPTIBLE OF THE INTERPRETATION PLACED ON IT BY THE ADMINISTRATIVE OFFICE, LIMITING ACCEPTANCE OF YOUR BID TO AN "ALL OR NONE" BASIS OR TO AWARD ON ITEM NO. 10 ALONE. IN THIS VIEW OF THE MATTER AND CONSIDERING THE REPORTED FACT THAT INVITATION NO. IFB600 -776-60 INCLUDED AN ERRONEOUS DESCRIPTION OF THE TRANSFORMERS COVERED BY ITEM NO. 10, THERE IS NO BASIS FOR OBJECTION BY THIS OFFICE TO THE ACTION OF THE ADMINISTRATIVE OFFICE IN REJECTING ALL BIDS UNDER THAT INVITATION AND ISSUING A NEW INVITATION.