B-145761, JUN. 19, 1961

B-145761: Jun 19, 1961

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TO TELECTRO INDUSTRIES CORP.: FURTHER REFERENCE IS MADE TO YOUR LETTER OF MAY 2. RECEIPT IS ALSO ACKNOWLEDGED OF YOUR LETTER OF MAY 15. ITEM 15 THERE WERE LISTED 3 QUANTITIES ON WHICH BIDS WERE REQUESTED. THE 3 QUANTITIES ON WHICH BIDS WERE REQUESTED WERE 60. PROSPECTIVE BIDDERS WERE ADVISED UNDER PARAGRAPH VII OF THE SPECIAL INVITATION CONDITIONS THAT AN AWARD WOULD BE BASED ON THE NUMBER OF CHANNELS REQUIRED BY THE AGENCY AND THAT THE NUMBER OF CHANNELS THAT WOULD BE REQUIRED WOULD NOT BE KNOWN UNTIL TIME OF AWARD. IT WAS DETERMINED PRIOR TO AWARD THAT 2934 CHANNELS WERE NECESSARY TO MEET THE REQUIREMENTS OF THE AGENCY. SINCE THE SOUNDSCRIBER CORPORATION WAS THE LOWEST BIDDER UNDER THE FORMULAS SET FORTH IN THE INVITATION.

B-145761, JUN. 19, 1961

TO TELECTRO INDUSTRIES CORP.:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF MAY 2, 1961, PROTESTING AGAINST THE AWARD OF A CONTRACT TO THE SOUNDSCRIBER CORPORATION BY THE FEDERAL AVIATION AGENCY PURSUANT TO INVITATION NO. 1-1368B1. RECEIPT IS ALSO ACKNOWLEDGED OF YOUR LETTER OF MAY 15, 1961.

ON JANUARY 26, 1961, THE FEDERAL AVIATION AGENCY ISSUED AN INVITATION REQUESTING BIDS FOR FURNISHING MULTI-CHANNEL VOICE RECORDING EQUIPMENT. UNDER ITEMS 1 TO 10, INCLUSIVE, AND ITEM 15 THERE WERE LISTED 3 QUANTITIES ON WHICH BIDS WERE REQUESTED. BY WAY OF EXAMPLE, UNDER ITEM 1, COVERING MULTI-CHANNEL RECORDERS, THE 3 QUANTITIES ON WHICH BIDS WERE REQUESTED WERE 60, 120, AND 175. PROSPECTIVE BIDDERS WERE ADVISED UNDER PARAGRAPH VII OF THE SPECIAL INVITATION CONDITIONS THAT AN AWARD WOULD BE BASED ON THE NUMBER OF CHANNELS REQUIRED BY THE AGENCY AND THAT THE NUMBER OF CHANNELS THAT WOULD BE REQUIRED WOULD NOT BE KNOWN UNTIL TIME OF AWARD. PARAGRAPH VII ALSO PROVIDED A FORMULA FOR THE EVALUATION OF THE COST OF THE NUMBER OF CHANNELS PER MACHINE THAT MIGHT BE OFFERED BY BIDDERS AND ADVISED BIDDERS THAT THE AWARD WOULD BE MADE ON THE BASIS OF THE LOWEST AGGREGATE BID DERIVED BY ADDING THE MONETARY VALUE OF THE TAPE, AND RECORDERS, ITEM 1, DETERMINED AS SET FORTH IN THE PARAGRAPH AND THE MONETARY VALUE OF ALL OTHER ITEMS EXCLUSIVE OF ITEM 15. IT WAS DETERMINED PRIOR TO AWARD THAT 2934 CHANNELS WERE NECESSARY TO MEET THE REQUIREMENTS OF THE AGENCY. YOUR FIRM OFFERED RECORDERS OF 22-CHANNEL CAPACITY AND ON THE BASIS OF THAT CHANNEL CAPACITY, THE AGENCY WOULD REQUIRE 134 OF YOUR RECORDERS. THE SOUNDSCRIBER CORPORATION OFFERED RECORDERS OF 30 CHANNEL CAPACITY AND ON THE BASIS OF THAT CHANNEL CAPACITY, THE AGENCY WOULD REQUIRE 98 OF THAT FIRM'S RECORDERS. PARAGRAPH 26 OF THE SUPPLEMENTAL GENERAL PROVISIONS OF THE INVITATION PROVIDED A FORMULA FOR THE DETERMINATION OF PRICES FOR INTERMEDIATE QUANTITIES. ON THE BASIS OF THE NUMBER OF CHANNELS (MACHINES) AND RELATED EQUIPMENT REQUIRED BY THE GOVERNMENT AND THROUGH THE USE OF THE FORMULAS PROVIDED BY PARAGRAPH VII OF THE SPECIAL INVITATION CONDITIONS AND PARAGRAPH 26 OF THE SUPPLEMENTAL GENERAL PROVISIONS OF THE INVITATION, THE COST ON AN EVALUATED BASIS FROM TELECTRO INDUSTRIES CORPORATION WOULD BE $1,133,849.53 AS COMPARED TO THE SOUNDSCRIBER CORPORATION COST OF $1,042,150.68. SINCE THE SOUNDSCRIBER CORPORATION WAS THE LOWEST BIDDER UNDER THE FORMULAS SET FORTH IN THE INVITATION, AN AWARD WAS MADE TO THAT FIRM ON MARCH 30, 1961.

YOU CONTEND THAT THE AWARD TO THE SOUNDSCRIBER CORPORATION WAS MADE ON A BASIS OF USING AN INCORRECT UNIT PRICE OF $7,224.49 FOR THE INTERMEDIATE QUANTITY OF 98 UNITS OF ITEM 1 (RECORDERS); AND THAT THE PROPER UNIT PRICE WHICH SHOULD HAVE BEEN USED FOR THE QUANTITY OF 98 IS $8,000, THE UNIT PRICE QUOTED BY THE SOUNDSCRIBER CORPORATION FOR A QUANTITY OF 60 UNITS OF ITEM 1. YOU STATE THAT AN EXAMINATION OF THE BID FORM WILL SHOW THAT UNDER ITEM 1 PRICES ARE CALLED FOR IN QUANTITIES OF 60, 120, AND 175; THAT YOU BELIEVE THAT THE PRICE PLACED ALONGSIDE THE QUANTITY OF 60 WOULD BE APPLICABLE TO ALL QUANTITIES OF 60 TO AND INCLUDING 119, AND LIKEWISE THE PRICE PLACED ALONGSIDE THE QUANTITY OF 120 WOULD BE APPLICABLE TO A QUANTITY BETWEEN 120 AND 174; AND THAT YOU HAVE BEEN UNABLE TO FIND A BASIS IN THE BID FORM FOR THE AGENCY TAKING AN INTERMEDIATE PRICE FOR AN INTERMEDIATE QUANTITY. YOU CONTEND THAT IF THE AGENCY HAD EVALUATED THE BIDS IN THE MANNER NOW SUGGESTED BY YOU, THE AWARD WOULD HAVE BEEN MADE TO YOUR CORPORATION.

PARAGRAPH 26 OF THE SUPPLEMENTAL GENERAL PROVISIONS OF THE INVITATION PROVIDES AS FOLLOWS:

"FIRM UNIT PRICES AND INTERMEDIATE QUANTITIES: IF THE INVITATION REQUESTS PRICES ON A RANGE OF QUANTITIES FOR ANY ITEM, THE BIDDER SHALL QUOTE FIRM UNIT PRICES ON EACH OF THE QUANTITIES SPECIFIED. IF AN INTERMEDIATE QUANTITY IS SELECTED BY THE GOVERNMENT UNDER THE INITIAL AWARD OR ANY AWARD INCREASE, A COMMENSURATE TOTAL PRICE SHALL APPLY WHICH BEARS A LINEAR RELATIONSHIP TO THE TOTAL PRICES QUOTED FOR THE TWO ADJACENT QUANTITIES AND THE UNIT PRICE SHALL BE DETERMINED BY DIVIDING THE COMMENSURATE TOTAL PRICE BY THE TOTAL QUANTITY TO BE FURNISHED.'

PURSUANT TO THE PROVISIONS OF THE ABOVE PARAGRAPH AND USING THE FORMULA PRESCRIBED THEREIN, THE AGENCY IN EVALUATING THE BID OF THE SOUNDSCRIBER CORPORATION ARRIVED AT A UNIT PRICE OF $7,224.49 FOR A QUANTITY OF 98 RECORDERS, THE NUMBER OF RECORDERS NECESSARY FOR FURNISHING THE REQUIRED NUMBER OF CHANNELS. SINCE THE INVITATION PROVIDED FOR THE DETERMINATION OF PRICES FOR INTERMEDIATE QUANTITIES, THE ACTION OF THE AGENCY IN USING AN INTERMEDIATE PRICE FOR AN INTERMEDIATE QUANTITY IN EVALUATING THE BIDS RECEIVED WAS PROPER. MOREOVER, IT IS NOTED THAT IF THE BIDS RECEIVED ON ITEMS 1 TO 14, INCLUSIVE, ARE EVALUATED IN THE MANNER SUGGESTED BY YOU IN YOUR LETTER OF MAY 15, 1961, YOUR BID WOULD NOT BE THE LOWEST RECEIVED, SINCE YOU BID PRICE WOULD BE IN THE AMOUNT OF $1,138,074.07 AS COMPARED TO THE SOUNDSCRIBER CORPORATION'S BID PRICE OF $1,118,762.82. THE FOREGOING PRICES INCLUDE THE MONETARY VALUE OF THE TAPE AS REQUIRED BY PARAGRAPH VII (B) AND (D) OF THE SPECIAL INVITATION CONDITIONS.

ACCORDINGLY, WE DO NOT FIND ANY LEGAL BASIS ON WHICH WE COULD OBJECT TO THE ADMINISTRATIVE ..END :