B-159052, MAY 20, 1966

B-159052: May 20, 1966

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TO THE SECRETARY OF THE NAVY: REFERENCE IS MADE TO A LETTER DATED APRIL 26. BIDS WERE SOLICITED FROM 20 SMALL BUSINESS SOURCES AND THE PROCUREMENT WAS SYNOPSIZED IN THE COMMERCE BUSINESS DAILY. THREE BIDS WERE RECEIVED UPON OPENING ON FEBRUARY 24. 095 IT IS STATED THAT ALTHOUGH INLAND MARINE INDUSTRIES SUBMITTED THE LOW AGGREGATE BID ON THE ESTIMATED QUANTITIES SPECIFIED. WHILE ITS BID PRICES ON A FEW ITEMS WERE LOWER THAN THE PRICES ON ITS PREVIOUS CONTRACT. ITS BID PRICES ON MANY ITEMS WERE CONSIDERABLY HIGHER THAN ITS PRICES FOR THE SAME ARTICLES ON THE PREVIOUS CONTRACT. IT WAS ALSO DISCOVERED DURING THE REVIEW OF BIDS RECEIVED THAT LEONARD INTERIORS. THE CONTRACTING OFFICER DETERMINED THAT THE BID PRICES RECEIVED WERE UNREASONABLE AND THAT READVERTISEMENT IN AN EFFORT TO OBTAIN BETTER PRICES AND INCREASED COMPETITION WOULD BE IN THE BEST INTERESTS OF THE GOVERNMENT.

B-159052, MAY 20, 1966

TO THE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO A LETTER DATED APRIL 26, 1966, FILE SANDA 642, WITH ENCLOSURES, FROM THE ASSISTANT CHIEF FOR PURCHASING, BUREAU OF SUPPLIES AND ACCOUNTS (NOW NAVAL SUPPLY SYSTEMS COMMAND), DEPARTMENT OF THE NAVY, REQUESTING A DECISION AS TO WHETHER AN AWARD MAY BE MADE UNDER INVITATION FOR BIDS (IFB) NO. N0022866B3055, ISSUED BY THE NAVAL SUPPLY CENTER, OAKLAND, CALIFORNIA, ON MARCH 18, 1966.

ON FEBRUARY 1, 1966, THE NAVAL SUPPLY CENTER, OAKLAND, CALIFORNIA, ISSUED IFB NO. N0022866B3021, A TOTAL SMALL BUSINESS SET-ASIDE, PRELIMINARY TO THE AWARD OF A NEW ANNUAL CONTRACT FOR THE RENOVATION AND REPAIR OF SHIPBOARD FURNITURE FOR SHIPS DOCKED IN THE 12TH NAVAL DISTRICT. BIDS WERE SOLICITED FROM 20 SMALL BUSINESS SOURCES AND THE PROCUREMENT WAS SYNOPSIZED IN THE COMMERCE BUSINESS DAILY. THREE BIDS WERE RECEIVED UPON OPENING ON FEBRUARY 24, 1966, AS FOLLOWS:

CHART

BIDDER TOTAL

INLAND MARINE INDUSTRIES $58,100

SPRINGFIELD'S UPHOLSTERY 58,530

EAST BAY UPHOLSTERY 98,095

IT IS STATED THAT ALTHOUGH INLAND MARINE INDUSTRIES SUBMITTED THE LOW AGGREGATE BID ON THE ESTIMATED QUANTITIES SPECIFIED, AND WHILE ITS BID PRICES ON A FEW ITEMS WERE LOWER THAN THE PRICES ON ITS PREVIOUS CONTRACT, ITS BID PRICES ON MANY ITEMS WERE CONSIDERABLY HIGHER THAN ITS PRICES FOR THE SAME ARTICLES ON THE PREVIOUS CONTRACT. IT WAS ALSO DISCOVERED DURING THE REVIEW OF BIDS RECEIVED THAT LEONARD INTERIORS, THE SUCCESSFUL BIDDER ON SEVERAL PREVIOUS CONTRACTS, INADVERTENTLY HAD NOT BEEN SOLICITED UNDER THIS INVITATION.

THE CONTRACTING OFFICER DETERMINED THAT THE BID PRICES RECEIVED WERE UNREASONABLE AND THAT READVERTISEMENT IN AN EFFORT TO OBTAIN BETTER PRICES AND INCREASED COMPETITION WOULD BE IN THE BEST INTERESTS OF THE GOVERNMENT. ACCORDINGLY, IFB NO. N0022866B3021 WAS CANCELED AND ALL BIDDERS WERE SO NOTIFIED ON MARCH 1, 1966, BY FORM POST CARD.

THE REQUIREMENT WAS READVERTISED UNDER IFB NO. N0022866B3055, ISSUED ON MARCH 18, 1966, AS A TOTAL SMALL BUSINESS SET-ASIDE. IT IS REPORTED THAT INADVERTENTLY THIS RESOLICITATION WAS NOT SYNOPSIZED BUT BIDS WERE SOLICITED FROM A TOTAL OF 26 SMALL BUSINESS SOURCES INCLUDING LEONARD INTERIORS. THE FOLLOWING BIDS WERE RECEIVED UPON OPENING ON APRIL 5, 1966:

CHART

BIDDER TOTAL

LEONARD INTERIORS $48,670

SPRINGFIELD'S UPHOLSTERY 48,900

INLAND MARINE INDUSTRIES DID NOT SUBMIT A BID ON THE SECOND SOLICITATION, BUT BY LETTER OF MARCH 31, 1966, AND TELEGRAM OF APRIL 5, 1966, PROTESTED THE OPENING OF IFB NO. N0022866B3055, CONTENDING THAT IT SHOULD HAVE RECEIVED THE AWARD UNDER THE FIRST INVITATION.

IN OUR OPINION, THE ACTION TAKEN BY THE CONTRACTING OFFICER IN REJECTING ALL BIDS RECEIVED UNDER THE EARLIER IFB WAS A PROPER EXERCISE OF ADMINISTRATIVE DISCRETION UNDER 10 U.S.C. 2305 (C), WHICH PROVIDES FOR REJECTION OF ALL BIDS WHEN SUCH ACTION IS DETERMINED TO BE IN THE PUBLIC INTEREST, AND UNDER THE ARMED SERVICES PROCUREMENT REGULATION (ASPR) 2- 404.1 (B) (VI) WHICH PROVIDES THAT INVITATIONS FOR BIDS MAY BE CANCELED AFTER OPENING BUT PRIOR TO AWARD WHEN THE CONTRACTING OFFICER DETERMINES IN WRITING THAT ALL OTHERWISE ACCEPTABLE BIDS RECEIVED ARE AT UNREASONABLE PRICES. SEE B-158749, APRIL 21, 1966.

ALTHOUGH THROUGH INADVERTENCE THE READVERTISED IFB WAS NOT SYNOPSIZED IN THE COMMERCE BUSINESS DAILY AS REQUIRED BY ASPR 1-1003.1 (A), HAVING REGARD FOR THE FACT THAT THE ORIGINAL PROCUREMENT WAS PUBLISHED TOGETHER WITH THE FACT THAT BIDS WERE SOLICITED FROM A TOTAL OF 26 SMALL BUSINESS SOURCES, IT DOES NOT APPEAR THAT EITHER THE GOVERNMENT OR SMALL BUSINESS CONCERNS WERE PREJUDICED THEREBY.

ACCORDINGLY, AN AWARD OF A CONTRACT PROPERLY MAY BE MADE UNDER IFB NO. N0022866B3055.