B-153831, JUL. 24, 1964

B-153831: Jul 24, 1964

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SUCH DECREASE IN UNIT PRICE WILL BE INCLUDED IN THE EVALUATION OF BIDS. " BIDS WERE OPENED ON FEBRUARY 5. THE TWO LOWEST BIDS WERE FOUND TO BE AS FOLLOWS: TABLE COURTER PRODUCTS GYROTRON CORPORATION ITEM 1 $270. AS THERE WAS NO RECORD OF PRIOR PERFORMANCE FOR THE ITEM FROM YOUR FIRM. WE NOTE THAT COURTER PRODUCTS WAS THE LOW BIDDER WITHOUT REGARD TO THE WAIVER PROVISION. IT WAS PROPER FOR NAVY TO PROVIDE FOR THE WAIVER. SUCH A PROVISION IS CONSISTENT WITH THE GOVERNMENT'S POLICY OF PURCHASING ITS MINIMUM NEEDS. WE BELIEVE NEW SUPPLIERS ARE NOT DETERRED FROM BIDDING. YOU HAVE NOT FURTHER CLARIFIED YOUR CONTENTION. THAT UNDER ITEM 1A ALL BIDDERS WERE REQUIRED TO FURNISH ONE LOT OF SPECIAL TOOLING.

B-153831, JUL. 24, 1964

TO GYROTRON CORPORATION:

WE REFER TO YOUR TELEFAX OF MARCH 27, 1964, PROTESTING AGAINST AN AWARD TO ANY OTHER BIDDER UNDER INVITATION FOR BIDS NO. 419-356-64, ISSUED BY THE U.S. NAVAL ORDNANCE PLANT, FOREST PARK, ILLINOIS, ON JANUARY 15, 1964.

THE INVITATION CALLED FOR BIDS ON ITEM 1, A QUANTITY OF 1,570 EACH "RATE GYRO," AND ITEM 1A, THE SPECIAL TOOLING REQUIRED TO PRODUCE ITEM 1. ADDITION, THE INVITATION PROVIDED AS FOLLOWS:

"PREPRODUCTION SAMPLES AND/OR VENDOR'S TEST DATA:

WAIVER OF

"VENDOR TO FURNISH TEN (10) PREPRODUCTION SAMPLES AS ITEMIZED BELOW.

"HOWEVER, IN MAKING AN AWARD, THE GOVERNMENT RESERVES THE RIGHT TO WAIVE EITHER THE PREPRODUCTION SAMPLES, THE TEST DATA, OR BOTH. BIDDERS SHALL STATE IN THE SPACES PROVIDED BELOW FOR ITEM 1 THE DECREASE IN UNIT PRICE AND TIME OF DELIVERY IN THE EVENT OF SUCH WAIVER; AND, IN EVALUATING BIDS ON SUCH A WAIVER BASIS, SUCH DECREASE IN UNIT PRICE WILL BE INCLUDED IN THE EVALUATION OF BIDS.

TABLE

"WAIVER OF PREPRODUCTION SAMPLES: ITEM 1 -------------------

"REDUCTION FROM UNIT PRICE $ ---------------------------------------

"ADVANCEMENT IN DELIVERY SCHEDULE FOR PRODUCTION QUANTITY: -------- ----- -------------------- DAYS

"WAIVER OF TEST DATA: ITEM 1 ------------------------------ "

BIDS WERE OPENED ON FEBRUARY 5, 1964. THE TWO LOWEST BIDS WERE FOUND TO BE AS FOLLOWS:

TABLE

COURTER PRODUCTS GYROTRON CORPORATION

ITEM 1 $270,040.00 $263,289.00

ITEM 1A 9,985.20 17,300.00

$280,025.20 $280,589.00

LESS WAIVER OFFERED ON

PROPOSALS 1,224.60 3,925.00

TEST DATA $278,800.60 $276,664.00

NAVY DETERMINED THAT IT COULD NOT WAIVE PREPRODUCTION SAMPLES OR TEST DATA ON YOUR BID, AS THERE WAS NO RECORD OF PRIOR PERFORMANCE FOR THE ITEM FROM YOUR FIRM. THIS LEFT COURTER PRODUCTS AS THE LOW BIDDER ON A NON- WAIVER BASIS. BUT NAVY CONCLUDED THAT A WAIVER COULD BE GIVEN TO COURTER, SINCE IT APPEARED THAT THAT BIDDER HAD PRODUCED THE ITEM IN THE PAST. MARCH 19, 1964, COURTER PRODUCTS RECEIVED THE AWARD, AT A TOTAL PRICE OF $278,800.60.

YOU CONTEND THAT NAVY'S METHOD OF EVALUATION IMPROPERLY FAVORED PRIOR CONTRACTORS.

WE NOTE THAT COURTER PRODUCTS WAS THE LOW BIDDER WITHOUT REGARD TO THE WAIVER PROVISION. BE THAT AS IT MAY, IT WAS PROPER FOR NAVY TO PROVIDE FOR THE WAIVER. SEE ASPR 2-201 (B) (XIV). SUCH A PROVISION IS CONSISTENT WITH THE GOVERNMENT'S POLICY OF PURCHASING ITS MINIMUM NEEDS, AND WHILE THE PROVISION DOES FAVOR THE PRIOR SUPPLIER, WE BELIEVE NEW SUPPLIERS ARE NOT DETERRED FROM BIDDING. SEE B-151436, JUNE 20, 1963 (42 COMP. GEN. -

IN YOUR PROTEST, YOU REFER TO THE UNFAIR ADVANTAGE A BIDDER HAD IN THE EVALUATION THAT ALREADY HAD SPECIAL TOOLING FURNISHED TO IT ON A PREVIOUS CONTRACT. YOU HAVE NOT FURTHER CLARIFIED YOUR CONTENTION. WE NOTE, HOWEVER, THAT UNDER ITEM 1A ALL BIDDERS WERE REQUIRED TO FURNISH ONE LOT OF SPECIAL TOOLING. IT DOES NOT APPEAR THAT COURTER AS A PREVIOUS SUPPLIER HAD ANY ADVANTAGE IN THE EVALUATION BY ITS POSSIBLE POSSESSION OF GOVERNMENT TOOLING. THE BIDDER WAS STILL REQUIRED TO BID ON FURNISHING ONE LOT OF TOOLING.