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B-144292, NOV. 28, 1960

B-144292 Nov 28, 1960
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TO ALUMINUM COMPANY OF AMERICA: FURTHER REFERENCE IS MADE TO A COPY OF A LETTER DATED OCTOBER 19. FOUR OF THESE VESSELS WERE AT BROOKLYN. 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.'. ALCOA STATED THAT ITS BID WAS CONTINGENT UPON RECEIVING AN AWARD OF SIMILAR ITEMS IN ALL SIX LOTS. EVALUATION OF BIDS NECESSARILY WAS MADE ON AN ITEM BY ITEM BASIS. IT WAS DETERMINED THAT ALCOA. WAS NOT THE LOW BIDDER ON A SUFFICIENT NUMBER OF ITEMS TO MEET THE MINIMUM QUANTITIES SPECIFIED IN ITS BID. IT WAS CONSIDERED THAT ALCOA WAS NOT ELIGIBLE FOR AWARD.

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B-144292, NOV. 28, 1960

TO ALUMINUM COMPANY OF AMERICA:

FURTHER REFERENCE IS MADE TO A COPY OF A LETTER DATED OCTOBER 19, 1960, TO THE NAVY PURCHASING OFFICE, WASHINGTON, D.C., PROTESTING AGAINST THE AWARDS MADE UNDER INVITATION FOR BIDS NO. 600-196-61, AS AMENDED, COVERING 504 ITEMS OF ALUMINUM ALLOY SHEETS, PLATES, SHAPES,TUBES AND PIPES TO BE USED IN THE CONVERSION OF SIX VESSELS. FOUR OF THESE VESSELS WERE AT BROOKLYN, NEW YORK, ONE AT BOSTON, MASSACHUSETTS, AND ONE AT PHILADELPHIA, PENNSYLVANIA.

THE INVITATION ACCORDINGLY REQUESTED BIDS ON SIX LOTS COMPOSED OF THE FOLLOWING ITEMS: LOT 1, ITEM 1 THROUGH 84; LOT 2, ITEMS 85 THROUGH 168; LOT 3, ITEMS 169 THROUGH 252; LOT 4, ITEMS 253 THROUGH 336; LOT 5, ITEMS 337 THROUGH 420; LOT 6, ITEMS 421 THROUGH 504.

PAGE 1 OF THE INVITATION SCHEDULE PROVIDED, IN PART:

"AWARD BY LOT

"SUBJECT TO THE PROVISIONS OF PARAGRAPH EIGHT OF THE TERMS AND CONDITION 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.'

PARAGRAPH 8 OF THE TERMS AND CONDITIONS OF THE INVITATION FOR BIDS PROVIDED, IN PERTINENT PART:

"* * * 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 A LETTER ACCOMPANYING ITS BID, ALCOA STATED THAT ITS BID WAS CONTINGENT UPON RECEIVING AN AWARD OF SIMILAR ITEMS IN ALL SIX LOTS, FOR EXAMPLE, AN AWARD FOR ITEM 1 HAD TO INCLUDE ITEMS 85, 169, 253, 337 AND 421. IN ADDITION, ALCOA STATED THAT ANY RESULTING AWARD MUST CONTAIN THE FOLLOWING MINIMUM QUANTITIES:

TABLE

PRODUCT TOTAL MINIMUM QUANTITY

SHEET AND PLATE 250,000 LBS.

SHAPES 25,000 LBS.

TUBE AND PIPE 8,000 LBS.

HOWEVER, NONE OF THE NINE RESPONDING BIDDERS, INCLUDING ALCOA, SUBMITTED BIDS ON A COMPLETE LOT. IN VIEW THEREOF, EVALUATION OF BIDS NECESSARILY WAS MADE ON AN ITEM BY ITEM BASIS. IN EVALUATING ALCOA'S BID, AS QUALIFIED, IT WAS DETERMINED THAT ALCOA, WHILE APPARENTLY THE LOW BIDDER ON SEVERAL ITEMS, WAS NOT THE LOW BIDDER ON A SUFFICIENT NUMBER OF ITEMS TO MEET THE MINIMUM QUANTITIES SPECIFIED IN ITS BID. HENCE, IT WAS CONSIDERED THAT ALCOA WAS NOT ELIGIBLE FOR AWARD.

AWARDS WERE MADE ON OCTOBER 17, 1960, AS FOLLOWS:

KAISER ALUMINUM AND CHEMICAL SALES, INC.,

CONTRACT NO. N600/131/56031/FRAM).

ITEMS 2, 4, 7, 10, 13, 50, 91, 94, 100, 134, 178, 218, 254, 256, 264-266, 302, 338, 339, 342-346, 348, 350-353, 357, 358, 360, 362, 386, 423, 424, 428, 429, 432, 433, 435, 437, 440, 441, 443, 446, AND 470.

REYNOLDS METALS COMPANY

CONTRACT NO. N600/131/56033/FRAM)

ITEMS 1, 3, 5, 6, 8, 9, 11, 12, 14-26, 36, 41, 44, 48, 51-53, 85-90, 92, 93, 95-99- 101-110, 113, 114, 120, 125, 128, 132, 135-137, 169 177, 179- 194, 204, 209, 212, 216, 219-221, 253, 255, 257-263, 267-278, 281, 282, 288, 293, 296, 300, 303-305, 337, 340, 341, 347, 349, 354 356, 359, 361, 372, 377, 380, 384, 387-389, 421, 422, 425-427, 430, 431, 434, 436, 438, 439, 442, 444, 445, 449, 450, 456, 461, 464, 468, AND 471-473.

OLIN MATHIESON CHEMICAL CORPORATION. METALS DIVISION

CONTRACT NO. N600/131/56035/FRAM)

ITEMS 29-32, 35, 39, 40, 42, 43, 45-47, 115, 116, 123, 124, 126, 127, 129 -131, 197-200, 203, 207, 208, 210, 211, 213-215, 283, 284, 291, 292, 294, 295, 297-299, 365-368, 371, 375, 376, 378, 379, 381-383, 451, 452, 459, 460, 462, 463, AND 465-467.

JOSEPH T. RYERSON AND SON, INC.

CONTRACT NO. N600/131/56038/FRAM)

ITEMS 54, 138, 222, 306, 390, 474, AND 501-504.

THE PROTEST AGAINST THE AWARDS AS MADE IS DIRECTED TO THE FACT THAT AN AWARD WAS NOT MADE TO ALCOA FOR A GROUP OF ITEMS--- INCLUDING LOW BID ITEMS, TIE BID ITEMS AND SECOND LOW BID ITEMS--- AS TO WHICH THEY WERE LOWER ON AN AGGREGATE BASIS THAN ON AN ITEM BY ITEM BASIS.

IT APPEARS THAT ALCOA WAS LOW BIDDER ON ITEMS 11, 12, 16, 49, 70-72, 95, 96, 100, 114, 133, 154-156, 179, 180, 184, 217, 238-240, 263, 264, 268, 282, 301, 322-324, 341, 347, 348, 351, 352, 385, 406-408, 425, 431, 432, 435, 436, 450, 469, 490-492, AND 504.

ALSO, ALCOA WAS TIE LOW BIDDER WITH THE REYNOLDS METAL COMPANY, A LARGE BUSINESS CONCERN, LOCATED IN A SUBSTANTIAL AND PERSISTENT LABOR SURPLUS AREA, ON ITEMS 1, 3, 6, 8, 9, 15, 17, 26, 85, 87, 90, 92, 93, 99, 101-110, 169, 171, 174, 176, 177, 183, 185-194, 253, 255, 258, 260, 261, 267, 269- 271, AND 273-278.

AND, ALCOA WAS TIE LOW BIDDER WITH REYNOLDS, KAISER ALUMINUM, AND CHEMICAL SALES COMPANY, BOTH LARGE BUSINESS CONCERNS LOCATED IN A SUBSTANTIAL AND PERSISTENT LABOR SURPLUS AREA, ON ITEMS 2, 4, 7, 10, 13, 14, 86, 88, 91, 94, 97, 98, 170, 172, 175, 178, 181, 182, 254, 256, 259, 262, 265, 337-340, 342-346, 349, 350, 353-362, 421-424, 426-430, 433, 434, AND 437-446.

ALCOA WAS TIE LOW BIDDER WITH REVERE COPPER AND BRASS, INCORPORATED, ON ITEMS 57, 141, 225, 309, 393, AND 477.

WHILE, AS SHOWN ABOVE, ALCOA WAS LOW BIDDER ON CERTAIN ITEMS, THE TOTAL WEIGHT OF THOSE ITEMS WAS LESS THAN THE MINIMUM QUANTITY OF 250,000 POUNDS STIPULATED IN ITS LETTER ACCOMPANYING THE BID. MOREOVER, WHILE ALCOA WAS TIE LOW BIDDER WITH REYNOLDS AND KAISER ON CERTAIN ITEMS, THOSE ITEMS COULD NOT HAVE BEEN CONSIDERED WITH ITS LOW BID ITEMS TO BRING THE TOTAL QUANTITY OF ALL SUCH ITEMS IN THE AGGREGATE UP TO THE 250,000 MINIMUM STIPULATION. UNDER SECTION 2 407.6 (A) (I) OF THE ASPR, THE TIE BIDS WERE REQUIRED TO BE RESOLVED IN FAVOR OF THE BIDDERS LOCATED IN A SUBSTANTIAL AND PERSISTENT LABOR SURPLUS AREA. THIS WAS DONE HERE.

REFERRING BACK TO THE QUOTED INVITATION PROVISIONS RESPECTING AWARD, IT IS TO BE NOTED THAT THERE IS NOTHING IN THE TWO PARAGRAPHS FROM WHICH IT MIGHT BE INFERRED THAT SEPARATE CONTRACTS WERE NECESSARILY TO BE AWARDED ON EACH LOT. THE FIRST-QUOTED PROVISION WAS EXPRESSLY "SUBJECT TO THE PROVISIONS OF PARAGRAPH 8," WHICH SPECIFICALLY PERMITTED THE GOVERNMENT TO ACCEPT ANY GROUP OF ITEMS FOR A QUANTITY LESS THAN THE QUANTITY BID UPON "UNLESS THE BIDDER SPECIFIED OTHERWISE IN HIS BID.' ALCOA LIMITED THE QUANTITIES IT WOULD ACCEPT. IN VIEW THEREOF, WE MUST CONCLUDE THAT THE AWARDS AS MADE ARE NOT SUBJECT TO OBJECTION BY OUR OFFICE.

CONCERNING THE 152 ITEMS OF ALUMINUM TUBING ON WHICH ALCOA WAS THE ONLY BIDDER, WE HAVE BEEN ADVISED THAT THESE ITEMS, TOGETHER WITH ITEMS WHICH WERE CANCELED BY AMENDMENT NO. 2 TO THIS INVITATION, ARE BEING INCLUDED WITH AN ADDITIONAL REQUIREMENT FOR ALUMINUM TUBING AND SHAPES, AND THAT PROCUREMENT IS BEING EFFECTED BY FORMAL ADVERTISING.

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