B-159771, SEP. 28, 1966

B-159771: Sep 28, 1966

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THE INVITATION WAS ISSUED DECEMBER 27. THE BIDS WERE OPENED ON JANUARY 27. WERE SENT FOR EVALUATION TO THE BUREAU OF SHIPS ON FEBRUARY 8. 1965 IFB600-562-66 WAS ISSUED FOR THE PROCUREMENT OF VIBRATION MONITOR AND AMPLIFIER SYSTEMS. EQUIPMENT WHICH WAS INTENDED TO WORK IN CONJUNCTION WITH ACCELEROMETERS. THESE BIDS WERE OPENED ON JANUARY 13. IT WAS DISCOVERED THAT ONE OF THESE BIDDERS HAD OFFERED EQUIPMENT WHICH INCORPORATED A "CHARGE SYSTEM" RATHER THAN THE "VOLTAGE SYSTEM" REQUIRED BY THE SPECIFICATIONS. IT WAS DECIDED THAT A DETAILED STUDY BE MADE AS TO THE FEASIBILITY OF USING THE CHARGE SYSTEM. - IN THE VIBRATION MONITOR AND AMPLIFIER SYSTEMS AND THE EFFECT SUCH A CHANGE MIGHT HAVE ON THE SPECIFICATIONS COVERING THE ACCELEROMETERS UPON WHICH YOUR COMPANY BID.

B-159771, SEP. 28, 1966

TO MASSA DIVISION:

WE AGAIN REFER TO YOUR LETTER OF JULY 21, 1966, ASKING US TO INVESTIGATE THE FAILURE OF THE DEPARTMENT OF THE NAVY TO ADVISE YOUR COMPANY AS TO THE REASONS FOR THE REJECTION OF BIDS AND CANCELLATION OF INVITATION FOR BIDS NO. IFB600-643-66, IN ACCORDANCE WITH THE APPLICABLE PROVISIONS OF THE ARMED SERVICES PROCUREMENT REGULATION.

THE INVITATION WAS ISSUED DECEMBER 27, 1965, FOR THE PROCUREMENT OF GENERAL PURPOSE ACCELEROMETERS. THE BIDS WERE OPENED ON JANUARY 27, 1966, AND WERE SENT FOR EVALUATION TO THE BUREAU OF SHIPS ON FEBRUARY 8, TO BE RETURNED ON FEBRUARY 21, 1966.

DURING THE SAME GENERAL PERIOD, ON DECEMBER 3, 1965 IFB600-562-66 WAS ISSUED FOR THE PROCUREMENT OF VIBRATION MONITOR AND AMPLIFIER SYSTEMS, EQUIPMENT WHICH WAS INTENDED TO WORK IN CONJUNCTION WITH ACCELEROMETERS. THESE BIDS WERE OPENED ON JANUARY 13, 1966, AND FORWARDED FOR TECHNICAL EVALUATION ON JANUARY 19. IT WAS DISCOVERED THAT ONE OF THESE BIDDERS HAD OFFERED EQUIPMENT WHICH INCORPORATED A "CHARGE SYSTEM" RATHER THAN THE "VOLTAGE SYSTEM" REQUIRED BY THE SPECIFICATIONS. AFTER PRELIMINARY ANALYSIS, IT WAS DECIDED THAT A DETAILED STUDY BE MADE AS TO THE FEASIBILITY OF USING THE CHARGE SYSTEM--- WHICH WOULD PROVIDE EQUIPMENT AT A SUBSTANTIALLY REDUCED COST--- IN THE VIBRATION MONITOR AND AMPLIFIER SYSTEMS AND THE EFFECT SUCH A CHANGE MIGHT HAVE ON THE SPECIFICATIONS COVERING THE ACCELEROMETERS UPON WHICH YOUR COMPANY BID.

IT WAS DETERMINED THAT THE CHARGE SYSTEM WAS SUITABLE FOR USE IN THE VIBRATION MONITOR AND AMPLIFIER SYSTEM, AND THAT THE SPECIFICATIONS FOR THE ACCELEROMETERS WOULD HAVE TO BE REVISED ACCORDINGLY. BOTH INVITATIONS THEREFORE WERE CANCELED AND BIDS WILL BE RESOLICITED UNDER THE REVISED PURCHASE DESCRIPTIONS.

ASPR 2-404.1 (B) (II) AND (V) PROVIDE FOR CANCELLATION OF BIDS AND READVERTISEMENT WHERE THE SPECIFICATIONS HAVE BEEN REVISED OR WHERE THE BIDS RECEIVED INDICATE THAT THE NEEDS OF THE GOVERNMENT CAN BE SATISFIED BY A LESS EXPENSIVE ARTICLE DIFFERING FROM THAT AS TO WHICH BIDS WERE INVITED. SINCE THE ADMINISTRATIVE ACTION TAKEN HERE APPEARS TO HAVE BEEN CONSISTENT WITH THE REGULATIONS, WE SEE NO BASIS TO OBJECT THERETO.

THE DEPARTMENT ACKNOWLEDGES THAT THE NOTICE OF CANCELLATION SENT TO YOU WAS NOT IN PROPER FORM AND ADVISES THAT STEPS HAVE BEEN TAKEN TO ASSURE THAT CANCELLATION NOTICES WILL ADVISE BIDDERS AS TO THE REASONS FOR CANCELLATION.