B-145634, MAY 31, 1961

B-145634: May 31, 1961

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AWARD WILL GENERALLY BE MADE TO A SINGLE BIDDER ON THE ENTIRE LOT. THE GOVERNMENT RESERVES THE RIGHT TO AWARD BY ITEM WHEN THE CONTRACTING OFFICER DETERMINES THAT IT IS ADVANTAGEOUS TO THE GOVERNMENT.'. THREE BIDS WERE RECEIVED AND OPENED AS SCHEDULED ON MARCH 28. IT WAS DETERMINED BY THE CONTRACTING AGENCY THAT AWARD ON A LOT BASIS WOULD BE MOST ADVANTAGEOUS TO THE GOVERNMENT. N67001-5936 WAS AWARDED TO TROY ON APRIL 5. IT IS YOUR CONTENTION THAT HAD A SPLIT AWARD BEEN MADE TO YOU OF ITEMS 1. A SAVING WOULD HAVE BEEN REALIZED ON THE ENTIRE PROCUREMENT. A SAVINGS OF $147 WOULD HAVE RESULTED. WOULD NOT HAVE JUSTIFIED SUCH AWARDS AS BEING IN THE BEST INTERESTS OF THE GOVERNMENT. THE RECORD SHOWS THAT THE DETERMINATION TO MAKE AN AWARD ON A LOT BASIS WAS BASED ON SUCH FACTORS AS AVOIDING THE ACCRUAL OF COSTS IN EXCESS OF THE OSTENSIBLE $147 SAVINGS INVOLVED IN MAKING SPLIT AWARDS.

B-145634, MAY 31, 1961

TO SUPER LAUNDRY MACHINERY COMPANY:

BY LETTER DATED APRIL 13, 1961, WITH ENCLOSURES, YOU PROTESTED AGAINST THE AWARD OF A CONTRACT UNDER INVITATION FOR BIDS NO. F-92-61, ISSUED ON FEBRUARY 20, 1961, BY THE PURCHASING AND CONTRACTING BRANCH, BASE MATERIEL BATTALION, SECOND FORCE SERVICE REGIMENT, FMF, CAMP LEJEUNE, NORTH CAROLINA.

THE INVITATION, AS AMENDED, REQUESTED BIDS ON THE FOLLOWING ITEMS:

TABLE

ITEM QUANTITY 1. IRONER, FLATWORK

1 EACH 2. FOLDING MACHINE, LAUNDRY 1 EACH 3. INSTALLATION AND SERVICES

FOR ITEMS 1 AND 2 1 JOB 4. ALLOWANCE FOR TRADE-IN FOR

(1) FLATWORK IRONER 1 EACH

(2) FOLDING MACHINE, 1 EACH

LAUNDRY

PAGE 4 OF THE INVITATION PROVIDED:

"AWARD BY LOT: SUBJECT TO THE PROVISIONS OF PARAGRAPH 1 OF THE TERMS AND CONDITIONS OF THE INVITATION FOR BIDS, AWARD WILL GENERALLY BE MADE TO A SINGLE BIDDER ON THE ENTIRE LOT. HOWEVER, THE GOVERNMENT RESERVES THE RIGHT TO AWARD BY ITEM WHEN THE CONTRACTING OFFICER DETERMINES THAT IT IS ADVANTAGEOUS TO THE GOVERNMENT.'

THREE BIDS WERE RECEIVED AND OPENED AS SCHEDULED ON MARCH 28, 1961, AND IT APPEARS FROM THE ABSTRACT OF BIDS THAT YOUR FIRM BID ON ITEMS 1, 3 AND 4 (1) AS FOLLOWS:

TABLE

ITEM 1 $22,000

ITEM 3 600

$22,600

CARRIED FORWARD $22,600

ITEM 4 (1) -6,950

TOTAL BID $15,650

THE TROY LAUNDRY MACHINERY DIVISION OF AMERICAN MACHINE AND METALS, INC., BID AS FOLLOWS:

ITEM 1 $19,354

ITEM 2 6,903

ITEM 3 600

$26,857

ITEM 4 (1) -3,500

4 (2) -1,000

TOTAL BID $22,357

THAT BIDDER ALSO OFFERED TO FURNISH ITEMS 1 AND 2 FOR A LUMP-SUM PRICE OF $26,000, OR A TOTAL BID PRICE OF $22,100.

UPON THE EVALUATION OF BIDS, IT WAS DETERMINED BY THE CONTRACTING AGENCY THAT AWARD ON A LOT BASIS WOULD BE MOST ADVANTAGEOUS TO THE GOVERNMENT. THEREFORE, CONTRACT NO. N67001-5936 WAS AWARDED TO TROY ON APRIL 5, 1961, IN THE AMOUNT OF $22,100.

IT IS YOUR CONTENTION THAT HAD A SPLIT AWARD BEEN MADE TO YOU OF ITEMS 1, 3 AND 4 (1) AS THE LOWEST BIDDER, A SAVING WOULD HAVE BEEN REALIZED ON THE ENTIRE PROCUREMENT. WHILE THE RECORD INDICATES THAT HAD ITEMS 1, 3 AND 4 (1) BEEN AWARDED TO YOUR FIRM FOR $15,650 AND HAD ITEMS 2, 3 (SERVICING AND INSTALLING THE FOLDING MACHINE ONLY), AND 4 (2) BEEN AWARDED TO TROY AT $6,303, A SAVINGS OF $147 WOULD HAVE RESULTED, OTHER CONSIDERATIONS, IN OUR OPINION, WOULD NOT HAVE JUSTIFIED SUCH AWARDS AS BEING IN THE BEST INTERESTS OF THE GOVERNMENT.

THE RECORD SHOWS THAT THE DETERMINATION TO MAKE AN AWARD ON A LOT BASIS WAS BASED ON SUCH FACTORS AS AVOIDING THE ACCRUAL OF COSTS IN EXCESS OF THE OSTENSIBLE $147 SAVINGS INVOLVED IN MAKING SPLIT AWARDS, ADMINISTERING TWO CONTRACTS, COORDINATING DELIVERIES, INSTALLATIONS AND SERVICES, AND EFFECTING MULTIPLE PAYMENTS.

ALL BIDDERS WERE ON NOTICE THAT AWARD GENERALLY WOULD BE MADE TO A SINGLE BIDDER ON THE ENTIRE LOT. A BIDDER, SUCH AS YOUR FIRM, ON A SINGLE ITEM AND ITEMS RELATED THERETO WAS ON NOTICE THAT EVEN IF HIS BID SHOULD BE LOWER AS TO THAT ITEM OR ITEMS, THE RIGHT WAS RESERVED TO THE GOVERNMENT TO MAKE AWARD BY ITEM IF "ADVANTAGEOUS TO THE GOVERNMENT.' HERE, IT WAS CLEARLY NOT ADVANTAGEOUS TO AWARD ON A SPLIT BASIS IN VIEW OF THE CIRCUMSTANCES INVOLVED.

SINCE THE LOT BID OF TROY WAS THE MOST ADVANTAGEOUS TO THE GOVERNMENT, PRICE AND OTHER FACTORS CONSIDERED, WE MUST CONCLUDE THAT THE AWARD MADE WAS PROPER AND NOT SUBJECT TO QUESTION BY OUR OFFICE.