B-145107, MAY 5, 1961

B-145107: May 5, 1961

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INC.: FURTHER REFERENCE IS MADE TO YOUR LETTER DATED FEBRUARY 17. UPON THE OPENING OF THE BIDS FOR THE PROJECT IT WAS FOUND THAT THE KNOX HOMES CORPORATION OF THOMSON. WAS THE APPARENT LOW BIDDER. THE DETERMINATION OF A BIDDER'S QUALIFICATIONS TO COMPLY WITH ALL CONTRACT REQUIREMENTS IS PRIMARILY A FUNCTION OF THE DEPARTMENT OR AGENCY CHARGED WITH THE ADMINISTRATION OF THE CONTRACT. OUR OFFICE WILL NOT OBJECT TO THE CONCLUSION REACHED. A REVIEW OF THE FACTS HERE PRESENTED SHOWS THAT THE KNOX HOMES CORPORATION MANUFACTURES PREFABRICATED AND MOBILE HOMES AND IS A SUBSIDIARY OF NATIONAL HOMES. THE AIR FORCE IS NOW PROCESSING CONTRACTUAL DOCUMENTS WITH THE INTENT TO MAKE AN AWARD OF THE PROJECT TO THE KNOX HOMES CORPORATION IN THE AMOUNT OF $1.

B-145107, MAY 5, 1961

TO MIDWEST HOMES, INC.:

FURTHER REFERENCE IS MADE TO YOUR LETTER DATED FEBRUARY 17, 1961, PROTESTING THE ACTION PROPOSED TO BE TAKEN BY THE TYNDALL AIR FORCE BASE UNDER INVITATION NO. 08-637-61-65.

UNDER DATE OF JANUARY 5, 1961, THE BASE PROCUREMENT OFFICE OF THE AIR FORCE BASE ISSUED THE SUBJECT INVITATION FOR FURNISHING, IN ACCORDANCE WITH APPLICABLE SPECIFICATIONS, DRAWINGS, ETC., ALL LABOR, EQUIPMENT AND MATERIALS, AND PERFORMING ALL WORK IN CONNECTION WITH THE FABRICATION AND INSTALLATION OF 135 TRANSPORTABLE TYPE HOUSING UNITS AT FIVE AC AND W SITES IN ALABAMA, FLORIDA, AND MISSISSIPPI. UPON THE OPENING OF THE BIDS FOR THE PROJECT IT WAS FOUND THAT THE KNOX HOMES CORPORATION OF THOMSON, GEORGIA, WAS THE APPARENT LOW BIDDER. IN YOUR LETTER OF FEBRUARY 17, 1961, YOU ADVISE THAT WHILE YOU DO NOT QUESTION THE NATIONAL REPUTATION OF THE KNOX HOMES CORPORATION, YOU DO QUESTION--- APPARENTLY AS THE SOLE BASIS OF YOUR PROTEST--- THE CORPORATION'S EXPERIENCE AND ABILITY TO PERFORM IN ACCORDANCE WITH THE APPLICABLE PLANS AND SPECIFICATIONS AT THE PRICES QUOTED BY IT, SINCE THAT CORPORATION, OR OTHERS OF THE SAME CLASSIFICATION, CANNOT COMPARE TO THE EXTENSIVE EXPERIENCE OF YOUR FIRM IN THE FIELD OF TRANSPORTABLE, RELOCATABLE HOUSING.

THE DETERMINATION OF A BIDDER'S QUALIFICATIONS TO COMPLY WITH ALL CONTRACT REQUIREMENTS IS PRIMARILY A FUNCTION OF THE DEPARTMENT OR AGENCY CHARGED WITH THE ADMINISTRATION OF THE CONTRACT--- IN THIS INSTANCE, THE DEPARTMENT OF THE AIR FORCE. SUCH A DETERMINATION MUST, OF NECESSITY, BE BASED UPON FACTUAL INFORMATION AVAILABLE TO THAT DEPARTMENT OR AGENCY PRIOR TO AWARD AND, IN THE ABSENCE OF ANY SHOWING OF BAD FAITH OR THE LACK OF A REASONABLE FACTUAL BASIS FOR THE DETERMINATION, OUR OFFICE WILL NOT OBJECT TO THE CONCLUSION REACHED. A REVIEW OF THE FACTS HERE PRESENTED SHOWS THAT THE KNOX HOMES CORPORATION MANUFACTURES PREFABRICATED AND MOBILE HOMES AND IS A SUBSIDIARY OF NATIONAL HOMES, LAFAYETTE, ONE OF THE LARGEST HOME MANUFACTURERS IN THE WORLD. MOREOVER, IN THE OVER-ALL EVALUATION OF THE BIDS RECEIVED IN RESPONSE TO INVITATION NO. 08-637-61- 65, THE DEPARTMENT OF THE AIR FORCE CONDUCTED A FACILITY CAPABILITY SURVEY FOR THE PURPOSE OF DETERMINING THE FINANCIAL AND TECHNICAL ABILITY OF THE KNOX HOMES CORPORATION TO PERFORM THE WORK OF A PROJECT OF THIS KIND. THE SURVEY RESULTED IN A FAVORABLE REPORT AND, THEREFORE, THE DEPARTMENT OF THE AIR FORCE CONSIDERS THE CORPORATION FULLY CAPABLE OF PERFORMING THE WORK IN COMPLIANCE WITH THE CONTRACT SPECIFICATIONS. AS A CONSEQUENCE, THE AIR FORCE IS NOW PROCESSING CONTRACTUAL DOCUMENTS WITH THE INTENT TO MAKE AN AWARD OF THE PROJECT TO THE KNOX HOMES CORPORATION IN THE AMOUNT OF $1,384,555, INCLUDING THE BASIC PROJECT AND ALTERNATES NOS. 1 THROUGH 6.

IN VIEW OF THE FOREGOING, WE MUST CONCLUDE THAT THE AWARD ACTION PROPOSED BY THE DEPARTMENT OF THE AIR FORCE IN THE MATTER IS NOT SUBJECT TO LEGAL OBJECTION.