B-142940, JUN. 20, 1960

B-142940: Jun 20, 1960

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

TO THE SULLIVAN COUNTY ELECTRONICS CORPORATION: REFERENCE IS MADE TO YOUR TELEGRAM OF MAY 18. IN YOUR TELEGRAM YOU STATED THAT YOU WERE INFORMED ORALLY ON MAY 2. KOCH THAT YOU WERE THE LOW BIDDER BUT THAT SUBSEQUENTLY ON MAY 18. YOU WERE ADVISED THAT YOU WERE NO LONGER THE LOW BIDDER. THE CONTRACTING OFFICER HAS REPORTED THAT THREE PROPOSALS WERE RECEIVED IN THIS CASE. 550 WAS CONDITIONED UPON BEING FURNISHED CERTAIN COMPONENTS BY THE GOVERNMENT FOR THE MANUFACTURE OF THE INVOLVED RADARS. THE VALUE OF THE GOVERNMENT-FURNISHED COMPONENTS WAS LATER ESTIMATED AS $677. WHEN THIS AMOUNT WAS ADDED TO YOUR QUOTED PRICE. IT WAS THEREFORE DECIDED THAT THE DIFFERENCE IN AMOUNT OF THE PROPOSALS PLACED YOUR PROPOSAL BEYOND THE RANGE OF FURTHER CONSIDERATION AND YOU WERE SO ADVISED BY TELEPHONE PRIOR TO YOUR TELEGRAM TO OUR OFFICE ON MAY 18.

B-142940, JUN. 20, 1960

TO THE SULLIVAN COUNTY ELECTRONICS CORPORATION:

REFERENCE IS MADE TO YOUR TELEGRAM OF MAY 18, 1960, PROTESTING THE AWARD OF A CONTRACT TO ANOTHER BIDDER UNDER REQUEST FOR PROPOSALS NO. P.R. 623B- 24533 ISSUED BY THE BUREAU OF SHIPS, DEPARTMENT OF THE NAVY.

IN YOUR TELEGRAM YOU STATED THAT YOU WERE INFORMED ORALLY ON MAY 2, 1960, BY ONE MR. E. H. KOCH THAT YOU WERE THE LOW BIDDER BUT THAT SUBSEQUENTLY ON MAY 18, 1960, YOU WERE ADVISED THAT YOU WERE NO LONGER THE LOW BIDDER. YOU URGED THAT AN INVESTIGATION OF THE MATTER BE MADE.

IN A LETTER DATED JUNE 13, 1960, THE CONTRACTING OFFICER HAS REPORTED THAT THREE PROPOSALS WERE RECEIVED IN THIS CASE. YOUR APPARENT LOW BID OF $655,550 WAS CONDITIONED UPON BEING FURNISHED CERTAIN COMPONENTS BY THE GOVERNMENT FOR THE MANUFACTURE OF THE INVOLVED RADARS. THE VALUE OF THE GOVERNMENT-FURNISHED COMPONENTS WAS LATER ESTIMATED AS $677,303, AND WHEN THIS AMOUNT WAS ADDED TO YOUR QUOTED PRICE, IT WOULD RESULT IN A COST TO THE GOVERNMENT OF $1,332,853 AS COMPARED WITH A QUOTATION OF $770,293 BY STAVID DIVISION OF LOCKHEED ELECTRONICS COMPANY WITH NO PROPERTY TO BE FURNISHED BY THE GOVERNMENT. IT WAS THEREFORE DECIDED THAT THE DIFFERENCE IN AMOUNT OF THE PROPOSALS PLACED YOUR PROPOSAL BEYOND THE RANGE OF FURTHER CONSIDERATION AND YOU WERE SO ADVISED BY TELEPHONE PRIOR TO YOUR TELEGRAM TO OUR OFFICE ON MAY 18, 1960.

WHILE IT WAS NOT NECESSARY IN THIS CASE TO DETERMINE WHETHER YOU WERE A RESPONSIBLE BIDDER, IN VIEW OF THE FACTS AS REPORTED HEREINABOVE, THE CONTRACTING OFFICER HAS STATED THAT IN CONNECTION WITH A REQUEST FOR PROPOSALS FOR SIMILAR MATERIALS, THE MATTER OF YOUR COMPETENCY WAS REFERRED TO THE SMALL BUSINESS ADMINISTRATION AND THAT SBA REFUSED TO ISSUE A CERTIFICATE OF COMPETENCY YOUR FIRM. IT APPEARS, HOWEVER, FROM A COPY OF YOUR LETTER OF MAY 20, 1960, TO THE SBA THAT YOU HAVE REQUESTED RECONSIDERATION OF ITS DECISION.

UNDER THE CIRCUMSTANCES, THERE IS NO BASIS FOR CONCLUDING THAT THE ACTION OF THE DEPARTMENT OF THE NAVY IN REFUSING TO CONSIDER YOUR BID FOR NEGOTIATION PURPOSES WAS IMPROPER.