B-143890, OCT. 21, 1960

B-143890: Oct 21, 1960

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WE HAVE REVIEWED YOUR PROTEST AGAINST THE REJECTION OF YOUR LOW BID FOR CERTAIN SUPPLY ITEMS UNDER DEPARTMENT OF THE NAVY INVITATION 600-1988 60. YOU CHARGE THAT AFTER YOU WERE ADMINISTRATIVELY DETERMINED TO BE NONRESPONSIBLE AND WERE DENIED A CERTIFICATE OF COMPETENCY BY THE SMALL BUSINESS ADMINISTRATION. YOU WERE NOT ALLOWED ADDITIONAL TIME TO ESTABLISH YOUR RESPONSIBILITY. THE RECORD INDICATES THAT AFTER THE OPENING OF BIDS A PREAWARD SURVEY OF YOUR COMPANY WAS MADE BY THE INSPECTOR OF NAVAL MATERIAL. THE PREAWARD SURVEY REPORT STATES THAT YOUR PERFORMANCE RECORD IS UNSATISFACTORY IN THAT/OF 18 RECENT CONTRACTS REVIEWED. 11 WERE IN VARYING DEGREES OF DELINQUENCY. THE REPORT NOTES THAT YOU HAVE HAD NO EXPERIENCE IN MAKING THE SAME OR A SIMILAR ITEM COVERED BY THE PROCUREMENT AND POINTS OUT THAT AFTER CONFERRING WITH YOUR PROPOSED SUBCONTRACTORS IT IS PROBLEMATICAL WHETHER YOU WILL BE ABLE TO MAINTAIN THE CONTRACT DELIVERY SCHEDULE.

B-143890, OCT. 21, 1960

TO TENSOR ELECTRIC DEVELOPMENT CO., INC.:

IN RESPONSE TO YOUR LETTERS OF SEPTEMBER 2 AND OCTOBER 17, 1960, AND SEVERAL INFORMAL CONFERENCES WITH YOUR REPRESENTATIVES, WE HAVE REVIEWED YOUR PROTEST AGAINST THE REJECTION OF YOUR LOW BID FOR CERTAIN SUPPLY ITEMS UNDER DEPARTMENT OF THE NAVY INVITATION 600-1988 60.

SPECIFICALLY, YOU CHARGE THAT AFTER YOU WERE ADMINISTRATIVELY DETERMINED TO BE NONRESPONSIBLE AND WERE DENIED A CERTIFICATE OF COMPETENCY BY THE SMALL BUSINESS ADMINISTRATION, YOU WERE NOT ALLOWED ADDITIONAL TIME TO ESTABLISH YOUR RESPONSIBILITY.

THE RECORD INDICATES THAT AFTER THE OPENING OF BIDS A PREAWARD SURVEY OF YOUR COMPANY WAS MADE BY THE INSPECTOR OF NAVAL MATERIAL. THE PREAWARD SURVEY REPORT STATES THAT YOUR PERFORMANCE RECORD IS UNSATISFACTORY IN THAT/OF 18 RECENT CONTRACTS REVIEWED, 11 WERE IN VARYING DEGREES OF DELINQUENCY. FURTHER, THE REPORT NOTES THAT YOU HAVE HAD NO EXPERIENCE IN MAKING THE SAME OR A SIMILAR ITEM COVERED BY THE PROCUREMENT AND POINTS OUT THAT AFTER CONFERRING WITH YOUR PROPOSED SUBCONTRACTORS IT IS PROBLEMATICAL WHETHER YOU WILL BE ABLE TO MAINTAIN THE CONTRACT DELIVERY SCHEDULE. SPECIFICALLY, THE REPORT STATES "THE RATHER LOOSE AND CONJECTURAL TIME ESTIMATING METHODS EMPLOYED, DELIVERY ESTIMATES, ABSENCE OF OR SCATTERED SUPPLIER COMMITMENTS, OBSERVED AT THE CONTRACTOR AND SUB- CONTRACTOR LEVEL IS LIKELY TO RESULT IN PERFORMANCE DIFFICULTIES.'

SINCE YOUR CAPACITY WAS IN ISSUE, THE MATTER WAS REFERRED TO THE SMALL BUSINESS ADMINISTRATION TO PERMIT IT TO ISSUE A CERTIFICATE OF COMPETENCY IN THE EVENT THEY DETERMINED IT WAS WARRANTED. THE SMALL BUSINESS ADMINISTRATION DECLINED TO ISSUE A CERTIFICATE. ACCORDING TO A REPORT WE HAVE RECEIVED FROM THE SMALL BUSINESS ADMINISTRATION THAT AGENCY'S DETERMINATION WAS BASED UPON THE FAILURE OF YOUR COMPANY TO SHOW FIRM COMMITMENTS FROM YOUR SUBCONTRACTORS SO AS TO PROVIDE REASONABLE ASSURANCE THAT YOU WILL BE ABLE TO MEET THE DELIVERY SCHEDULE. THIS REPORT STATES FURTHER THAT DISCREPANCIES IN THE SUBCONTRACTOR'S PRICING OF COMPONENTS AND ESTIMATES OF LABOR CAST DOUBT UPON YOUR ABILITY TO PERFORM THE CONTRACT SATISFACTORILY.

AS SOON AS YOU LEARNED OF THE INTENTION TO REJECT YOUR LOW BID YOUR REPRESENTATIVES CONTACTED THE CONTRACTING OFFICE AND THE SMALL BUSINESS ADMINISTRATION WITH THE VIEW OF OBTAINING RECONSIDERATION OF YOUR STATUS. ULTIMATELY, THE SMALL BUSINESS ADMINISTRATION TOOK THE POSITION THAT THE CASE WAS CLOSED ON THE EVIDENCE PRESENTED AND THAT IT WOULD NOT TAKE ANY FURTHER ACTION UNLESS NEW INFORMATION WAS PRESENTED BY THE NAVY.

THE CONTRACTING OFFICER HAS REVIEWED HIS ORIGINAL DETERMINATION OF NONRESPONSIBILITY. HOWEVER, HIS FURTHER INQUIRY INTO THE MATTER HAS PRODUCED INFORMATION WHICH SUPPORTS HIS PRIOR DETERMINATION OF YOUR NONRESPONSIBILITY BECAUSE OF DELINQUENT PERFORMANCES. THE DEPARTMENT OF THE NAVY IS OF THE OPINION THAT NO BASIS EXISTS FOR REQUESTING ANY RECONSIDERATION BY THE SMALL BUSINESS ADMINISTRATION SINCE THE EVIDENCE OF UNSATISFACTORY PERFORMANCE HAS BEEN FURTHER SUBSTANTIATED.

THE RECORD IN THIS CASE SHOWS THAT THE FACTS HAVE BEEN CONSIDERED NOT ONLY BY THE CONTRACTING AGENCY BUT ALSO BY THE SMALL BUSINESS ADMINISTRATION. BOTH OF THE AGENCIES CHARGED WITH THE DETERMINATION OF RESPONSIBILITY FACTORS HAVE CONCLUDED THAT THE EVIDENCE OF RECORD DOES NOT AFFORD A BASIS FOR A DETERMINATION THAT YOU ARE RESPONSIBLE. IN VIEW OF THE CONCLUSIVE CHARACTER OF THE SMALL BUSINESS ADMINISTRATION RULING AND THE SUBSTANTIAL BASIS ADVANCED BY NAVY FOR REFUSING TO REQUEST A RECONSIDERATION OF YOUR STATUS, WE WOULD NOT OBJECT IF THE ADMINISTRATIVE OFFICE WERE TO REJECT YOUR LOW BID.

THE TECHNICAL MANUAL YOUR REPRESENTATIVES LEFT AT OUR OFFICE ON SEPTEMBER 30, 1960, IS RETURNED HEREWITH.