B-158968, APR. 29, 1966

B-158968: Apr 29, 1966

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WAS SUBMITTED TO THIS OFFICE FOR CONSIDERATION. AMERICAN AIRCRAFT ALLEGED THAT IT SHOULD HAVE BEEN AWARDED ITEMS NOS. 118 AND 122 OF SURPLUS SALES NO. 21-6056 BECAUSE IT WAS THE HIGH BIDDER THEREON. ONLY THE "ALL OR-NONE" BID WILL BE CONSIDERED. * * *" IN ACCORDANCE WITH THE ABOVE-QUOTED SECTION OF THE INVITATION CHESAPEAKE AIRWAYS SERVICE CORPORATION SUBMITTED AN ALL-OR-NONE BID ON ITEMS NO. 117 THROUGH 123. 484.00 TOTAL BID PRICE AFTER THE DETERMINATION WAS MADE THAT ALL OR NONE OF THE ITEMS HAD TO BE AWARDED TO CHESAPEAKE AIRWAYS. THE CONTRACTING OFFICER COMPUTED WHAT THE HIGH TOTAL BID WOULD HAVE BEEN ON EACH ITEM IF NONE OF THE ITEMS HAD BEEN AWARDED TO CHESAPEAKE AIRWAYS. THIS WAS DONE IN THE FOLLOWING MANNER: CHART ITEM NO.

B-158968, APR. 29, 1966

TO DIRECTOR, DEFENSE SUPPLY AGENCY:

WE REFER TO A LETTER DATED APRIL 15, 1966, (YOUR REFERENCE DSAH-G) FROM THE ASSISTANT COUNSEL WHEREIN THE PROTEST OF AMERICAN AIRCRAFT ENGINEERING CORPORATION, ALEXANDRIA, VIRGINIA, WAS SUBMITTED TO THIS OFFICE FOR CONSIDERATION. AMERICAN AIRCRAFT ALLEGED THAT IT SHOULD HAVE BEEN AWARDED ITEMS NOS. 118 AND 122 OF SURPLUS SALES NO. 21-6056 BECAUSE IT WAS THE HIGH BIDDER THEREON.

ITEMS NO. 117 THROUGH 123 OF THE INVITATION CONSISTED OF SURPLUS AIRCRAFT PROPELLERS IN VARIOUS QUANTITIES, CONFORMING GENERALLY TO THE FOLLOWING DESCRIPTION:

"BLADE - AIRCRAFT PROPELLER, HAMILTON STANDARD DWG NO. 7007A-7; APPL. 43D50-615 PROPELLER AND HU-16 AIRCRAFT. FSN 1610-341-4882. (LOC: INSIDE 36 (A102A) - IN WOODEN BOXES - UNUSED ("

ARTICLE AF OF THE INVITATION, ENTITLED TIE-IN AND ALL-OR-NONE BIDS, READS, IN PART, AS FOLLOWS:

"/1) A BIDDER MAY SUBMIT A BID CONDITIONED UPON THE ACCEPTANCE OR NON- ACCEPTANCE OF HIS BIDS ON OTHER LINE ITEMS UNDER THIS INVITATION FOR BIDS. HE MAY ALSO SUBMIT BIDS ON AN "ALL-OR-NONE" BASIS. (2) IF A BIDDER SUBMITS AN "ALL-OR-NONE" BID WITHOUT SUBMITTING INDIVIDUAL LINE ITEM BIDS FOR THE SAME ITEMS, OR WITH LINE ITEM BIDS FOR THE SAME ITEMS, THE TOTAL OF WHICH EQUALS THE ,ALL-OR-NONE" BID, ONLY THE "ALL OR-NONE" BID WILL BE CONSIDERED. * * *"

IN ACCORDANCE WITH THE ABOVE-QUOTED SECTION OF THE INVITATION CHESAPEAKE AIRWAYS SERVICE CORPORATION SUBMITTED AN ALL-OR-NONE BID ON ITEMS NO. 117 THROUGH 123, IN THE FOLLOWING AMOUNTS:

CHART

ITEM NO. TOTAL ITEM BID PRICE

117 $1,122.60

118 748.40

119 1,122.60

120 1,122.60

121 1,122.60

122 1,122.60

123 1,122.60

$7,484.00 TOTAL BID PRICE

AFTER THE DETERMINATION WAS MADE THAT ALL OR NONE OF THE ITEMS HAD TO BE AWARDED TO CHESAPEAKE AIRWAYS, THE CONTRACTING OFFICER COMPUTED WHAT THE HIGH TOTAL BID WOULD HAVE BEEN ON EACH ITEM IF NONE OF THE ITEMS HAD BEEN AWARDED TO CHESAPEAKE AIRWAYS. THIS WAS DONE IN THE FOLLOWING MANNER:

CHART

ITEM NO. BIDDER TOTAL ITEM BID PRICE

117 AMERICAN AIRCRAFT $1,002.00

118 AMERICAN AIRCRAFT 868.00

119 AIRCRAFT PROPELLER CO. 983.94

120 AMERICAN AIRCRAFT 678.00

121 AMERICAN AIRCRAFT 558.00

122 AMERICAN AIRCRAFT 1,218.00

123 AMERICAN AIRCRAFT 462.00

TOTAL BID - $5,769.94

ON MARCH 3, 1966, THE AWARD OF ITEMS NO. 117 THROUGH 123 WAS MADE TO CHESAPEAKE AIRWAYS AT THE TOTAL PRICE OF $7,484.00 BECAUSE ITS "ALL OR- NONE" BID WAS $1,714.06 HIGHER THAN THE TOTAL BIDS FOR THE ITEMS BY THE HIGH BIDDER, IF NO ITEMS WERE AWARDED TO CHESAPEAKE AIRWAYS.

AMERICAN AIRCRAFT'S PROTEST AND DEMAND FOR AWARD SEEMS TO BE PREDICATED UPON THE FACT THAT ITS BIDS WERE THE HIGHEST SUBMITTED ON THE TWO ITEMS IN QUESTION. HOWEVER, SUCH A CONTENTION IS IN COMPLETE DISREGARD OF ARTICLE AF OF THE INVITATION AND IN DIRECT CONTRAVENTION OF THE WELL-SETTLED PROPOSITION THAT BIDS WILL BE EVALUATED ON THE BASES SET OUT IN THE INVITATION. 10 COMP. GEN. 261, 39 ID. 282. THE RULE IS THAT BIDS ON AN ALL-OR-NONE BASIS ARE RESPONSIVE AND MUST BE ACCEPTED IF THEY OFFER THE BEST AGGREGATE PRICE, IN THE ABSENCE OF A PROVISION IN THE INVITATION TO THE CONTRARY. 35 COMP. GEN. 383; 38 ID. 550.

IN OUR VIEW THE AWARD OF ITEMS NO. 117 THROUGH 123 TO CHESAPEAKE AIRWAYS SERVICES CORPORATION WAS VALID.