B-156659, JUL. 14, 1965

B-156659: Jul 14, 1965

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

DETERMINED THAT YOUR BID WAS EXCESSIVE. THE CONTRACTING OFFICER ISSUED A NOTICE OF BID CANCELLATION PURSUANT TO PARAGRAPH 2-404.2 (E) OF THE ARMED SERVICES PROCUREMENT REGULATION WHICH AUTHORIZES THE REJECTION OF AN INDIVIDUAL BID WHEN IT IS EXCESSIVE AS TO PRICE. INVITATION NO. -2277 (E) WAS ISSUED ON APRIL 2. FOUR BIDS WERE RECEIVED AND OPENED ON APRIL 22. WAS DELEGATED TO THE CONTRACTING OFFICER. THE PROPRIETY OF THE ACTIONS TAKEN IS EVIDENCED BY THE RESPONSES TO THE SECOND INVITATION WHEREUNDER COMPETITIVE BIDS RANGED FROM A LOW OF $323.75 TO A HIGH OF $775.45. THE FACT THAT YOUR BID UNDER THE FIRST INVITATION WAS PUBLICLY REVEALED IMPORTS NO LEGAL OBLIGATION ON THE GOVERNMENT TO ACCEPT IT NOTWITHSTANDING THAT IT WAS PATENTLY EXCESSIVE AS TO PRICE.

B-156659, JUL. 14, 1965

TO DAYTON ELECTRONIC PRODUCTS COMPANY, INC.:

BY LETTER DATED APRIL 26, 1965, YOU PROTESTED AGAINST THE CANCELLATION OF YOUR BID SUBMITTED UNDER DEPARTMENT OF THE ARMY INVITATION FOR BIDS NO. AMC-11-022-65-2133/E) AND THE READVERTISEMENT OF THE PROCUREMENT UNDER INVITATION FOR BIDS NO. AMC-11-022-65-2277 (E). YOU QUESTION SUCH ACTIONS ON THE BASIS THAT NO COMPELLING REASONS EXISTED FOR THE CANCELLATION AND READVERTISEMENT AND FOR THE FURTHER REASON THAT THE COMPETITIVE BIDDING SYSTEM REQUIRES AN AWARD TO THE LOWEST RESPONSIVE BIDDER WHOSE BID HAS BEEN EXPOSED TO PUBLIC SCRUTINY.

INVITATION NO. -2133 (E), ISSUED ON NOVEMBER 6, 1964, BY THE CHICAGO PROCUREMENT DISTRICT, REQUESTED BIDS FOR A QUANTITY OF IF AMPLIFIERS FOR RECEIVER-TRANSMITTERS RT-323 ( ( (VRC-24. YOUR COMPANY SUBMITTED THE ONLY BID ON JANUARY 28, 1965, AT A UNIT PRICE OF $605.69 FOR THE ITEM. THE CONTRACTING OFFICER, AFTER REVIEWING PRIOR PRICING INFORMATION, DETERMINED THAT YOUR BID WAS EXCESSIVE. THEREFORE, ON MARCH 9, 1965, THE CONTRACTING OFFICER ISSUED A NOTICE OF BID CANCELLATION PURSUANT TO PARAGRAPH 2-404.2 (E) OF THE ARMED SERVICES PROCUREMENT REGULATION WHICH AUTHORIZES THE REJECTION OF AN INDIVIDUAL BID WHEN IT IS EXCESSIVE AS TO PRICE.

INVITATION NO. -2277 (E) WAS ISSUED ON APRIL 2, 1965, CALLING FOR BIDS ON THE IDENTICAL ITEM. FOUR BIDS WERE RECEIVED AND OPENED ON APRIL 22, 1965. THE BEACONING OPTICAL AND PRECISION MATERIALS CO., LTD., OFFERED THE LOWEST BID AT A UNIT PRICE OF $323.75, AND YOUR COMPANY SUBMITTED THE SECOND LOWEST BID AT A UNIT COST OF $605.69. UPON REVIEW OF THE RECORD BEFORE US, WE FIND NO LEGAL BASIS TO QUESTION THE REJECTION OF YOUR BID OR THE READVERTISEMENT OF THE PROCUREMENT.

PARAGRAPH 8 (B) OF THE TERMS AND CONDITIONS OF INVITATION NO. -2133 (E) PROVIDED THAT THE GOVERNMENT RESERVED THE RIGHT TO REJECT ANY OR ALL BIDS RECEIVED. THIS PROVISION IMPLEMENTS THE PROVISION IN 10 U.S.C. 2305 (C) WHICH AUTHORIZES THE REJECTION OF ALL BIDS IF THE HEAD OF THE AGENCY DETERMINES SUCH ACTION TO BE IN THE PUBLIC INTEREST. THIS AUTHORITY, PURSUANT TO 10 U.S.C. 2308, WAS DELEGATED TO THE CONTRACTING OFFICER. THE PROPRIETY OF THE ACTIONS TAKEN IS EVIDENCED BY THE RESPONSES TO THE SECOND INVITATION WHEREUNDER COMPETITIVE BIDS RANGED FROM A LOW OF $323.75 TO A HIGH OF $775.45. THE FACT THAT YOUR BID UNDER THE FIRST INVITATION WAS PUBLICLY REVEALED IMPORTS NO LEGAL OBLIGATION ON THE GOVERNMENT TO ACCEPT IT NOTWITHSTANDING THAT IT WAS PATENTLY EXCESSIVE AS TO PRICE.

WE HAVE CONSISTENTLY HELD THAT AN INVITATION DOES NOT REQUIRE THE GOVERNMENT TO ACCEPT ANY OF THE BIDS SUBMITTED AND IT HAS THE AUTHORITY TO REJECT ANY OR ALL BIDS WHEN IT IS DETERMINED TO BE IN THE GOVERNMENT'S INTEREST TO DO SO. THE RECORD ESTABLISHES THAT THIS WAS THE CASE HERE. COMP. GEN. 364; 37 ID. 760; 39 ID. 86.