B-154762, AUG. 26, 1964

B-154762: Aug 26, 1964

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SALMON: FURTHER REFERENCE IS MADE TO YOUR TELEGRAM DATED JULY 15. THE INVITATION WAS ISSUED ON JUNE 10. BIDS WERE OPENED ON JULY 8. TWO BIDS WERE RECEIVED: MAGNA BUILDING CORPORATION'S IN THE AMOUNT OF $49. 745 BY MORE THAN 15 PERCENT AND SINCE THE GOVERNMENT'S ESTIMATE WAS CONSIDERED TO BE REASONABLE. THE DECISION TO REJECT ALL BIDS AS EXCESSIVE WAS MADE IN ACCORDANCE WITH THE RIGHT RESERVED UNDER PARAGRAPH 10B OF INSTRUCTIONS TO BIDDERS AND ASPR 2-404.1 (B) (VI). BIDDERS WERE NOTIFIED OF REJECTION OF BIDS BY LETTER DATED JULY 10. THE PROCUREMENT WAS READVERTISED ON JULY 10. IN VIEW OF THE FOREGOING IT WOULD APPEAR THAT THE ACTION TAKEN BY THE CONTRACTING OFFICER IN REJECTING ALL BIDS RECEIVED UNDER IFB ENG/NASA/-08- 176-64-57 WAS A PROPER EXERCISE OF ADMINISTRATIVE DISCRETION UNDER 10 U.S.C. 2305 (A).

B-154762, AUG. 26, 1964

TO MR. MICHAEL H. SALMON:

FURTHER REFERENCE IS MADE TO YOUR TELEGRAM DATED JULY 15, 1964, TO THE DISTRICT ENGINEER, UNITED STATES ARMY ENGINEER DISTRICT, CANAVERAL, FLORIDA, PROTESTING ON BEHALF OF MAGNA BUILDING CORPORATION AGAINST THE REJECTION OF ALL BIDS UNDER INVITATION FOR BIDS ENG/NASA/ 08-176-64-57 AND READVERTISEMENT UNDER INVITATION FOR BIDS ENG/NASA/ 08-176-65-5.

THE ADVANCE NOTICE TO BIDDERS ON IFB NO. ENG/NASA/-08-176-64-57 FOR SERVICE STRUCTURE HOIST MODIFICATIONS--- PART II, CAPE KENNEDY AIR FORCE STATION, PATRICK AIR FORCE BASE, FLORIDA, DATED MAY 18, 1964, LISTED AN APPROXIMATE CONSTRUCTION COST OF $50,000 AS REQUIRED BY ARMED SERVICES PROCUREMENT REGULATION (ASPR) 4-101.3. THE INVITATION WAS ISSUED ON JUNE 10, 1964, AND BIDS WERE OPENED ON JULY 8, 1964. TWO BIDS WERE RECEIVED: MAGNA BUILDING CORPORATION'S IN THE AMOUNT OF $49,876, AND VOIGHT CONSTRUCTION COMPANY'S IN THE AMOUNT OF $58,000. UNDER PARAGRAPH 2-404.2, CORPS OF ENGINEERS CONTRACT INSTRUCTIONS ER 1180-1-1, CHANGE 88, DATED NOVEMBER 13, 1962, WHERE THE LOWEST BID EXCEEDS THE GOVERNMENT'S ESTIMATE BY 15 PERCENT CONSIDERATION MUST BE GIVEN TO THE REASONABLENESS OF THE BIDS RECEIVED. SINCE BOTH BIDS EXCEEDED THE GOVERNMENT'S ESTIMATE OF $41,745 BY MORE THAN 15 PERCENT AND SINCE THE GOVERNMENT'S ESTIMATE WAS CONSIDERED TO BE REASONABLE, THE CONTRACTING OFFICER DETERMINED TO REJECT ALL BIDS IN THE INTEREST OF THE UNITED STATES. THE DECISION TO REJECT ALL BIDS AS EXCESSIVE WAS MADE IN ACCORDANCE WITH THE RIGHT RESERVED UNDER PARAGRAPH 10B OF INSTRUCTIONS TO BIDDERS AND ASPR 2-404.1 (B) (VI). BIDDERS WERE NOTIFIED OF REJECTION OF BIDS BY LETTER DATED JULY 10, 1964, AND THE PROCUREMENT WAS READVERTISED ON JULY 10, 1964, UNDER IFB ENG/NASA/ -08 176-65-5.

IN VIEW OF THE FOREGOING IT WOULD APPEAR THAT THE ACTION TAKEN BY THE CONTRACTING OFFICER IN REJECTING ALL BIDS RECEIVED UNDER IFB ENG/NASA/-08- 176-64-57 WAS A PROPER EXERCISE OF ADMINISTRATIVE DISCRETION UNDER 10 U.S.C. 2305 (A), WHICH PROVIDES FOR REJECTION OF ALL BIDS WHEN SUCH ACTION IS DETERMINED TO BE IN THE GOVERNMENT'S INTEREST, AND UNDER APPLICABLE REGULATIONS WHICH PROVIDE THAT INVITATIONS FOR BIDS MAY BE CANCELLED AFTER OPENING BUT PRIOR TO AWARD WHEN THE CONTRACTING OFFICER DETERMINES IN WRITING THAT ALL OTHERWISE ACCEPTABLE BIDS RECEIVED ARE AT UNREASONABLE PRICES. IN THIS CONNECTION, THE DECISIONS OF THIS OFFICE HAVE CONSISTENTLY HELD THAT AN INVITATION FOR BIDS DOES NOT IMPORT ANY OBLIGATION TO ACCEPT ANY OF THE BIDS RECEIVED AND ALL BIDS MAY BE REJECTED WHERE IT IS DETERMINED TO BE IN THE GOVERNMENT'S INTEREST TO DO SO. SEE 36 COMP. GEN. 364, 37 ID. 760 AND 39 ID. 86.

UNDER THE CIRCUMSTANCES WE ARE AWARE OF NO LEGAL BASIS FOR OBJECTION TO THE ADMINISTRATIVE ACTION IN THIS CASE, AND YOUR PROTEST MUST THEREFORE BE DENIED.