B-160681, MAR. 8, 1967

B-160681: Mar 8, 1967

Additional Materials:

Contact:

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

 

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

MANUFACTURING COMPANY: REFERENCE IS MADE TO YOUR TELEGRAM OF JANUARY 16. BIDS WERE SOLICITED ON AN F.O.B. WAS SOLICITED ON EITHER F.O.B. THE INVITATION PROVIDED THAT TWO SETS OF GOVERNMENT-OWNED TOOLING WERE AVAILABLE FOR USE IN THE PRODUCTION OF THE PROCUREMENT ITEMS. AWARD WAS MADE TO KNAPP ON FEBRUARY 1. WHICH AUTHORIZE AWARD OF A CONTRACT UNDER STATED CONDITIONS EVEN THOUGH A PROTEST IS PENDING BEFORE THIS OFFICE. YOUR OVERALL PRICE WOULD HAVE BEEN LOW. SINCE THERE WAS ONLY ONE SET OF GOVERNMENT OWNED TOOLING AVAILABLE TO YOUR FIRM AND KNAPP. YOUR REQUEST FOR BID CORRECTION WAS DENIED PURSUANT TO ASPR 2-406.3. AN THERE WAS NOTHING ON THE FACE OF THE BID ITSELF OR THE ACCOMPANYING PAPERS FROM WHICH THE MISTAKE AND PRICE INTENDED COULD BE ASCERTAINED.

B-160681, MAR. 8, 1967

TO F. AND L. MANUFACTURING COMPANY:

REFERENCE IS MADE TO YOUR TELEGRAM OF JANUARY 16, 1967, AND LETTER DATED JANUARY 31, 1967, WITH ENCLOSURES, ALLEGING A MISTAKE IN YOUR BID SUBMITTED UNDER INVITATION FOR BIDS NO. DSA-400-67-B-3007, ISSUED BY DEFENSE SUPPLY AGENCY, RICHMOND, VIRGINIA, AND REQUESTING THAT AWARD BE DELAYED PENDING CONSIDERATION OF THE MATTER.

THE ABOVE INVITATION, ISSUED ON NOVEMBER 1, 1966, REQUESTED BIDS ON SUPPLYING 73,000 INSULATED FOOD CONTAINERS WITH INSERTS. BIDS WERE SOLICITED ON AN F.O.B. DESTINATION BASIS TO THREE LOCATIONS FOR A QUANTITY OF 850 AND THE BALANCE OF THE QUANTITY, 72,150, WAS SOLICITED ON EITHER F.O.B. DESTINATION OR F.O.B. ORIGIN BASIS TO SEVEN LOCATIONS. THE INVITATION PROVIDED THAT TWO SETS OF GOVERNMENT-OWNED TOOLING WERE AVAILABLE FOR USE IN THE PRODUCTION OF THE PROCUREMENT ITEMS, BUT ONE SET WOULD ONLY BE AVAILABLE TO ITS PRESENT USER, LASKO METAL PRODUCTS, INC., KNAPP MONARCH CO. SUBMITTED THE LOWEST BID FOR BOTH QUANTITIES. YOUR FIRM SUBMITTED THE SECOND LOWEST BID ON THE 850 UNITS AND THE THIRD LOWEST BID ON THE 72,150 UNITS. BASED ON THE URGENT NEED FOR THE PROCUREMENT, AWARD WAS MADE TO KNAPP ON FEBRUARY 1, 1967, PURSUANT TO PARAGRAPH 2-407.9 (B) (2) AND (3) OF THE ARMED SERVICES PROCUREMENT REGULATION (ASPR), WHICH AUTHORIZE AWARD OF A CONTRACT UNDER STATED CONDITIONS EVEN THOUGH A PROTEST IS PENDING BEFORE THIS OFFICE.

PRIOR TO AWARD, BY LETTERS OF DECEMBER 13 AND 15, 1966, YOUR FIRM ALLEGED A MISTAKE IN ITS BID IN THAT IT HAD TWICE INCLUDED A COST PROCESSING FACTOR OF $2.31 IN ITS BID PRICE. YOUR FIRM THEREFORE REQUESTED PERMISSION TO CORRECT ITS BID BY DECREASING ITS BID PRICE. HAD THE BIDS BEEN REEVALUATED USING YOUR REVISED PRICE, YOUR OVERALL PRICE WOULD HAVE BEEN LOW, SINCE THERE WAS ONLY ONE SET OF GOVERNMENT OWNED TOOLING AVAILABLE TO YOUR FIRM AND KNAPP, THUS MAKING YOUR FIRM ELIGIBLE FOR THE ENTIRE AWARD. YOUR REQUEST FOR BID CORRECTION WAS DENIED PURSUANT TO ASPR 2-406.3, SINCE THE RESULT OF SUCH CORRECTION WOULD BE THAT YOUR REVISED BID WOULD BECOME THE LOW OVERALL BID, DISPLACING THE OTHERWISE LOW BID OF KNAPP, AN THERE WAS NOTHING ON THE FACE OF THE BID ITSELF OR THE ACCOMPANYING PAPERS FROM WHICH THE MISTAKE AND PRICE INTENDED COULD BE ASCERTAINED.

THIS OFFICE HAS HELD THAT TO PERMIT A BIDDER AFTER OPENING OF BIDS TO CORRECT AN ERROR, NOT OBVIOUS ON THE FACE OF THE BID, SO THAT THE CORRECTED BID BECOMES THE LOW BID DISPLACING AN OTHERWISE LOW BID,WOULD BE PREJUDICIAL TO THE RIGHTS OF THE OTHER BIDDER AND CONTRARY TO THE INTERESTS OF THE GOVERNMENT IN THE PRESERVATION AND MAINTENANCE OF THE COMPETITIVE BIDDING SYSTEM. 37 COMP. GEN. 210; 41 COMP. GEN. 469, 472. BASED UPON OUR REVIEW OF YOUR BID, AND OF THE EVIDENCE YOU SUBMITTED IN SUPPORT OF YOUR REQUEST FOR CORRECTION OF YOUR BID PRICE, WE MUST AGREE WITH THE CONCLUSION OF THE CONTRACTING AGENCY THAT YOUR ERROR WAS NOT OBVIOUS ON THE FACE OF YOUR BID, AND THAT CORRECTION OF YOUR BID WOULD THEREFORE HAVE BEEN IMPROPER.

IN VIEW THEREOF, AND IN VIEW OF THE PROVISIONS OF ASPR 2-407.9 (B) (2) AND (3), WE FIND NO BASIS FOR OBJECTING TO THE ADMINISTRATIVE ACTION TAKEN IN THIS MATTER, AND YOUR PROTEST AGAINST SUCH ACTIONS MUST THEREFORE BE DENIED.