B-146242, SEP. 1, 1961

B-146242: Sep 1, 1961

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INC.: REFERENCE IS MADE TO YOUR LETTER OF JUNE 26. BIDS WERE REQUESTED ON 31 AIR CONDITIONERS. YOUR BID WAS SUBMITTED F.O.B. BOTH OF WHICH ARE KECO PLANT LOCATIONS. YOUR BID WAS $1. 272.02 HIGHER THAN KECO INDUSTRIES AND AWARD WAS THEREFORE MADE TO KECO. YOU PROTEST THE AWARD ON THE GROUND THAT KECO INDUSTRIES DOES NOT HAVE MANUFACTURING FACILITIES AT SANTA ANA. THAT THE 31 UNITS WILL BE MANUFACTURED AT CINCINNATI. THAT KECO HAS THEREFORE TAKEN UNFAIR ADVANTAGE OF THE FACT THAT TWO DESTINATIONS WERE SPECIFIED FOR THE PURPOSE OF EVALUATION. A PREAWARD SURVEY BY THE INSPECTOR OF NAVAL MATERIAL DISCLOSED THAT KECO INDUSTRIES DOES HAVE MANUFACTURING FACILITIES AT SANTA ANA AND THAT THEY ARE ADEQUATE FOR THE INTENDED PURPOSE.

B-146242, SEP. 1, 1961

TO STEWART AVIONICS, INC.:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 26, 1961, PROTESTING AN AWARD TO KECO INDUSTRIES, NC., CINCINNATI, OHIO, UNDER NAVY INVITATION FOR BIDS NO. IFB-383-1069-61.

BIDS WERE REQUESTED ON 31 AIR CONDITIONERS, F.O.B. ORIGIN, AND THE INVITATION SPECIFIED THAT FOR THE PURPOSE OF EVALUATING BIDS 15 WOULD BE CONSIDERED AS DESTINED FOR NORFOLK, VIRGINIA, AND 16 FOR OAKLAND, CALIFORNIA. YOUR BID WAS SUBMITTED F.O.B. BROOKLYN, NEW YORK, AND KECO INDUSTRIES, INC., OFFERED TO SHIP 15 UNITS FROM CINCINNATI, OHIO, AND 16 UNITS FROM SANTA ANA, CALIFORNIA, BOTH OF WHICH ARE KECO PLANT LOCATIONS. AFTER ADDING FREIGHT CHARGES BASED ON THE ABOVE SHIPPING POINTS AND DESTINATIONS, YOUR BID WAS $1,272.02 HIGHER THAN KECO INDUSTRIES AND AWARD WAS THEREFORE MADE TO KECO.

YOU PROTEST THE AWARD ON THE GROUND THAT KECO INDUSTRIES DOES NOT HAVE MANUFACTURING FACILITIES AT SANTA ANA, CALIFORNIA, THAT THE 31 UNITS WILL BE MANUFACTURED AT CINCINNATI, AND THAT KECO HAS THEREFORE TAKEN UNFAIR ADVANTAGE OF THE FACT THAT TWO DESTINATIONS WERE SPECIFIED FOR THE PURPOSE OF EVALUATION.

A PREAWARD SURVEY BY THE INSPECTOR OF NAVAL MATERIAL DISCLOSED THAT KECO INDUSTRIES DOES HAVE MANUFACTURING FACILITIES AT SANTA ANA AND THAT THEY ARE ADEQUATE FOR THE INTENDED PURPOSE. HOWEVER, THE GOVERNMENT'S PRIMARY CONSIDERATION IS THE RECEIPT OF SPECIFICATION MATERIAL AT THE PLACE AND WITHIN THE TIME AGREED UPON. KECO AGREED TO PRODUCE AND DELIVER 16 AIR CONDITIONERS AT SANTA ANA, AND WHETHER THEY WERE MANUFACTURED OR MERELY ASSEMBLED THERE WOULD APPEAR TO HAVE NO MATERIAL BEARING ON THE MATTER.

THE FACT THAT KECO WAS ABLE TO OFFER DELIVERY AT ITS SANTA ANA PLANT AND THEREBY MATERIALLY REDUCE THE COST TO THE GOVERNMENT OF SHIPMENT TO ONE OF THE DESTINATIONS STATED IN THE INVITATION IS CERTAINLY NOT TAKING AN UNFAIR ADVANTAGE OF THE LOCATION OF THE PLANT. ANY TRANSPORTATION COST INVOLVED IN MAKING THE UNITS AVAILABLE TO THE GOVERNMENT AT SANTA ANA IS NECESSARILY INCLUDED IN KECO'S BID PRICE AND THE ADDITION OF FREIGHT CHARGES FROM SANTA ANA TO OAKLAND RESULTED IN A BONA FIDE FINAL DELIVERY COST TO THE GOVERNMENT FOR THE PURPOSE OF EVALUATION.

FOR THE REASONS STATED IT SEEMS CLEAR THAT THE BIDS WERE PROPERLY EVALUATED AND WE FIND NO LEGAL BASIS FOR OBJECTING TO THE AWARD OF THE CONTRACT TO KECO INDUSTRIES, INC. ..END :