B-153022, FEB. 17, 1964

B-153022: Feb 17, 1964

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TO THE SECRETARY OF THE NAVY: REFERENCE IS MADE TO LETTER R1.2 OF JANUARY 14. TWO BIDS WERE RECEIVED IN RESPONSE TO THE INVITATION FOR BIDS. THE KOLLMORGEN CORPORATION WAS THE LOW BIDDER. "IT IS CONTEMPLATED TO USE SOME ITEMS OF TOOLING IN THE CUSTODY OF KOLLMORGEN CORPORATION UNDER NOBS 5386.'. WAS REQUESTED TO ADVISE WHETHER KOLLMORGEN HAD AUTHORITY TO USE THE GOVERNMENT PROPERTY. IT REPLIED THAT A CONTRACT GIVING SUCH AUTHORITY TO KOLLMORGEN WAS BEING PREPARED. KOLLMORGEN DID NOT HAVE AUTHORITY TO USE THE TOLLING. THE BID OF THE CORPORATION WAS REJECTED AS NONRESPONSIVE. WAS REQUESTED TO REDUCE ITS BID PRICE AS IT WAS NOT CONSIDERED FAIR AND REASONABLE IN VIEW OF PAST PROCUREMENTS. KOLLSMAN DECLINED TO DO THIS AND THE INVITATION WAS CANCELED.

B-153022, FEB. 17, 1964

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO LETTER R1.2 OF JANUARY 14, 1964, FROM THE ASSISTANT CHIEF FOR PURCHASING, BUREAU OF SUPPLIES AND ACCOUNTS, REPORTING ON THE PROTEST OF THE KOLLMORGEN CORPORATION UNDER INVITATION IFB600-64-64.

TWO BIDS WERE RECEIVED IN RESPONSE TO THE INVITATION FOR BIDS. THE KOLLMORGEN CORPORATION WAS THE LOW BIDDER.

THE INVITATION FOR BIDS PROVIDED THAT IF A BIDDER PLANS TO USE, IN PERFORMING THE WORK BID UPON, ANY ITEMS OF GOVERNMENT PROPERTY IN THE BIDDER'S POSSESSION UNDER A FACILITIES CONTRACT OR OTHER AGREEMENT INDEPENDENT OF THE INVITATION FOR BIDS, THE BIDDER SHALL SO STATE IN THE BID, AND UPON REQUEST OF THE CONTRACTING OFFICER, SUBMIT EVIDENCE THAT A FACILITIES CONTRACT OR OTHER SEPARATE AGREEMENT AUTHORIZES THE BIDDER TO USE EACH ITEM OF SUCH GOVERNMENT PROPERTY FOR PERFORMING THE WORK BID UPON. IN RESPONSE TO THIS PROVISION, THE KOLLMORGEN CORPORATION STATED IN ITS BID LETTER,"IT IS CONTEMPLATED TO USE SOME ITEMS OF TOOLING IN THE CUSTODY OF KOLLMORGEN CORPORATION UNDER NOBS 5386.' WHEN THE BUREAU OF SHIPS, WHICH HAD ISSUED CONTRACT NOBS 5386, WAS REQUESTED TO ADVISE WHETHER KOLLMORGEN HAD AUTHORITY TO USE THE GOVERNMENT PROPERTY, IT REPLIED THAT A CONTRACT GIVING SUCH AUTHORITY TO KOLLMORGEN WAS BEING PREPARED. SINCE AT THE TIME OF BID OPENING, KOLLMORGEN DID NOT HAVE AUTHORITY TO USE THE TOLLING, THE BID OF THE CORPORATION WAS REJECTED AS NONRESPONSIVE.

AFTER THE REJECTION, KOLLSMAN INSTRUMENT CORPORATION, THE ONLY OTHER BIDDER TO RESPOND TO THE INVITATION, WAS REQUESTED TO REDUCE ITS BID PRICE AS IT WAS NOT CONSIDERED FAIR AND REASONABLE IN VIEW OF PAST PROCUREMENTS. KOLLSMAN DECLINED TO DO THIS AND THE INVITATION WAS CANCELED.

KOLLMORGEN HAS ADVISED OUR OFFICE RECENTLY THAT AFTER ITS BID WAS REJECTED A REASONABLE RENTAL ARRANGEMENT WAS NEGOTIATED WITH THE BUREAU OF SHIPS AUTHORIZING THE USE OF THE GOVERNMENT FACILITIES.

IF THE REPRESENTATION MADE BY KOLLMORGEN IS CORRECT, AN AWARD TO THE FIRM UNDER THE IMMEDIATE INVITATION FOR BIDS WOULD BE APPROPRIATE. THE INVITATION AUTHORIZED BIDDERS TO INDICATE IN THEIR BIDS THAT THEY WERE GOING TO PERFORM WITH GOVERNMENT EQUIPMENT AND THIS KOLLMORGEN DID. FURTHER, THE INVITATION DID NOT REQUIRE THAT EVIDENCE OF A FACILITIES CONTRACT AUTHORIZING USE OF THE GOVERNMENT PROPERTY BE FURNISHED WITH THE BID, BUT ONLY UPON THE REQUEST OF THE CONTRACTING OFFICER. THEREFORE, THE INVITATION DID NOT SPECIFY THAT THE FACILITIES AGREEMENT ACTUALLY BE IN EXISTENCE AT THE TIME OF BID OPENING. AS THE INVITATION DID NOT INDICATE AT WHAT POINT IN TIME THE FACILITIES CONTRACT WOULD HAVE TO BE PRODUCED IN EVIDENCE AND AS SUCH EVIDENCE IS NOW AVAILABLE AND NO AWARD HAS BEEN MADE UNDER THE INVITATION FOR BIDS, WE BELIEVE THAT, IF OTHERWISE PROPER, IT WOULD BE APPROPRIATE TO REINSTATE THE INVITATION AND TO CONSIDER THE KOLLMORGEN BID FOR AWARD.