B-143575, NOV. 10, 1960

B-143575, NOV. 10, 1960

TO WESTINGHOUSE ELECTRIC INTERNATIONAL COMPANY:

REFERENCE IS MADE TO THE TRANSMITTAL TO OUR OFFICE OF COPIES OF CORRESPONDENCE BETWEEN YOUR COMPANY AND THE SUPPLY AND REQUIREMENTS OFFICER, UNITED STATES OPERATIONS MISSION TO INDONESIA, INTERNATIONAL COOPERATION ADMINISTRATION, RELATIVE TO YOUR PROTEST AGAINST AWARDS OF CONTRACTS MADE TO INTERNATIONAL GENERAL ELECTRIC COMPANY, INC. OF JAVA, FOR DELIVERY C AND F DJAKARTA, INDONESIA, OF 270 GENERAL ELECTRIC WINDOW- TYPE AIR CONDITIONERS, MODEL R171-25, AT A UNIT PRICE OF $165.50 AND A TOTAL PRICE OF $44,685, INCLUDING EXPORT PACKING COSTS.

THE CONTRACTS WERE AWARDED PURSUANT TO INVITATIONS FOR BIDS NOS. 203 AND 204, ISSUED APRIL 20, 1960, COVERING SEPARATE PROPOSED PROCUREMENTS OF 185 AND 85 WINDOW-TYPE AIR CONDITIONERS SIMILAR TO GE DELUXE THINLINE MODEL R71S-25 AND OTHERWISE SPECIFIED AS "WINDOW TYPE AIR-CONDITIONER 1 HP 7.0 AMPERES 9,700 BTU/HR CAPACITY; DEHUMIDIFICATION (PTS/HR) 2.6, 220-230 VOLTS 50 CYCLES AC.' BIDDERS WERE ADVISED IN PARAGRAPH 11 OF EACH OF THE INVITATIONS THAT PRICES MUST BE STATED IN UNITS OF QUANTITY SPECIFIED, WITH EXPORT PACKING INCLUDED WHEN APPLICABLE.

THE SUCCESSFUL BIDDER QUOTED UNIT PRICES OF $158 AND $165.50, THE FIRST OF WHICH INCLUDED DOMESTIC PACKING AND THE SECOND OF WHICH INCLUDED EXPORT PACKING. IT WAS ADMINISTRATIVELY DETERMINED THAT THE CONTRACTS SHOULD BE AWARDED ON THE BASIS OF REQUIRING EXPORT PACKING BECAUSE OF EXTREMELY ROUGH HANDLING GIVEN TO SHIPMENTS UPON ARRIVAL AT THE PORT OF ENTRY IN INDONESIA. THE AWARDS WERE, THEREFORE, MADE AT THE UNIT PRICE OF $165.50 AND IT IS YOUR CONTENTION THAT THE AWARDS SHOULD HAVE BEEN MADE TO YOUR COMPANY AT YOUR QUOTED PRICE OF $158.03, "FOB DJAKARTA, INDONESIA.' YOU ALLEGED THAT SUCH PRICE INCLUDED EXPORT PACKING COSTS AND THAT THE BIDS ON THE GENERAL ELECTRIC MODEL WERE NONRESPONSIVE, SINCE ITS RATED COOLING CAPACITY IS 9,000 BTUS PER HOUR, INSTEAD OF THE SPECIFIED 9,700 BTUS PER HOUR.

YOUR BIDS WERE REJECTED INITIALLY BECAUSE OF AN ERROR IN INTERPRETATION OF THE BID PRICES AS BEING "F.O.B. NEW YORK.' WHEN YOUR ATTENTION WAS INVITED TO THE FACT THAT THE SUCCESSFUL BIDDER HAD QUOTED A PRICE OF $158 WITH DOMESTIC PACKING, YOU CONTENDED THAT THE DOMESTIC PACK QUOTATION WAS NOT PROPERLY FOR COMPARISON WITH YOUR PRICE OF $158.03 UNLESS THE GOVERNMENT HAD ORDERED THE MATERIAL IN DOMESTIC PACKING. AT THE SAME TIME YOU INDICATED THAT THE GENERAL ELECTRIC MODEL DID NOT HAVE THE REQUIRED COOLING CAPACITY OF 9,700 BTUS PER HOUR.

IT APPEARS THAT YOU ADVISED THE OPERATIONS MISSION THAT YOUR BID SHOULD HAVE BEEN CONSIDERED AS INCLUDING EXPORT PACKING BECAUSE YOU DID NOT TAKE EXCEPTION TO ANY OF THE CONDITIONS OF THE INVITATIONS FOR BIDS. THE INTERNATIONAL COOPERATION ADMINISTRATION HAS SUGGESTED IN THAT CONNECTION THAT, INASMUCH AS THE INVITATIONS PROVIDED THAT PRICES SHOULD INCLUDE EXPORT PACKING ,WHEN APPLICABLE," THE MERE ABSENCE OF EXCEPTIONS IS NOT ADEQUATE INFORMATION AS TO WHAT TYPE OF PACKING A BIDDER PROPOSED TO PERFORM. ALTHOUGH ELEVEN OF THE EIGHTEEN BIDDERS DID NOT SPECIFY EXPORT PACKING OR DOMESTIC PACKING, THE ADMINISTRATIVE POSITION ON THAT POINT APPEARS TO BE TECHNICALLY CORRECT.

RELATIVE TO THE QUESTION AS TO THE RESPONSIVENESS OF THE ACCEPTED BIDS, THE RECORD INDICATES THAT THE GE MODEL R71S-25 IS A 1958 MODEL HAVING A COOLING CAPACITY OF 9,700 BTUS PER HOUR. SEVERAL OF THESE MODELS HAD BEEN INSTALLED IN THE MISSION'S HOUSING UNITS AND IT WAS CONTEMPLATED TO PURCHASE ADDITIONAL EQUIPMENT OF PRACTICALLY THE SAME TYPE. THE GE MODEL R171-25 IS A 1960 MODEL, WHICH HAS A COOLING CAPACITY OF 9,000 BTUS PER HOUR AND, BECAUSE IT WAS CONSIDERED TO BE AN IMPROVEMENT OVER THE 1958 MODEL AND A BTU OF 9,000 IS MORE THAN AMPLE TO AIR CONDITION THE ROOMS IN THE MISSION'S HOUSING, IT WAS DETERMINED AS MEETING THE REQUIREMENT OF THE INVITATIONS THAT THE EQUIPMENT OFFERED BY BIDDERS SHOULD BE "SIMILAR TO GE DELUXE THINLINE MODEL R71S 25.'

WE DOUBT THAT THE CONCLUSION REACHED IN THAT MATTER WAS PROPER, SINCE THE GE MODEL R171-25 DOES NOT HAVE A COOLING CAPACITY OF 9,700 BTUS AND IT IS APPARENTLY NOT SIMILAR TO THE GE MODEL R71S-25 WITH RESPECT TO COOLING CAPACITY. HOWEVER, IN VIEW OF THE QUESTIONABLE PURPOSE OF INCLUDING ,SIMILAR TO GE DELUXE THINLINE MODEL R71S-25" IN THE DESCRIPTION OF THE DESIRED TYPE OF EQUIPMENT, WHEN IT IS CONSIDERED THAT THE MODEL R71S-25 WAS NOT A CURRENT MODEL OF THE GENERAL ELECTRIC COMPANY AND THAT THE MISSION DID NOT APPARENTLY WISH TO EXCLUDE ANY CURRENT GE 1 HP THINLINE MODEL OF WINDOW-TYPE AIR CONDITIONER WHICH WOULD MEET ITS MINIMUM NEEDS, WE WOULD NOT BE WARRANTED AT THIS TIME IN TAKING EXCEPTION TO THE AWARDS WHICH WERE MADE UNDER THE TWO INVITATIONS FOR BIDS. WE ARE ADVISED THAT THE 270 AIR CONDITIONERS WERE SHIPPED BY THE GENERAL ELECTRIC COMPANY ON JULY 23, 1960, WHICH IS ONLY ONE DAY SUBSEQUENT TO THE RECEIPT IN OUR OFFICE OF A COPY OF YOUR LETTER DATED JULY 21, 1960, TO THE OPERATIONS MISSION, PROTESTING THE AWARDS.