B-161495, JUL 13, 1967

B-161495: Jul 13, 1967

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REJECTION BY GSA OF A BID AS NONRESPONSIVE BY A BIDDER WHO NOT ONLY HAD NEVER MANUFACTURED ITEM (EGGWHIP) AND DID NOT HAVE EQUIPMENT. THE RULES OF COMPETITIVE BIDDING WHICH REQUIRE THAT ALL BIDDERS HAVE AN EQUAL OPPORTUNITY TO COMPETE ON A COMMON BASIS DO NOT PRECLUDE CONSIDERATION OF THE LOWEST OFFER MEETING THE SPECIFICATIONS FROM A BIDDER WHO SUBMITS MORE THAN ONE SUCH OFFER. 33 COMP. A BID WHICH OFFERED THE SURGE TEST WAS RESPONSIVE AS WAS A BID WHICH OFFERED A PREVIOUSLY APPROVED 60 CYCLE TEST AT 760 KV OR HIGHER VOLTAGE. OF THE LUMP-SUM BID PRICE REDUCTION PROVISION IN I-T-E'S BID WAS TO EXTEND TO THE GOVERNMENT A RESPONSIVE OFFER TO PERFORM AT A PRICE OF $221. WHICH OFFER WAS IN ADDITION TO THE RESPONSIVE OFFER TO PERFORM AT A PRICE OF $223.

B-161495, JUL 13, 1967

REJECTION BY GSA OF A BID AS NONRESPONSIVE BY A BIDDER WHO NOT ONLY HAD NEVER MANUFACTURED ITEM (EGGWHIP) AND DID NOT HAVE EQUIPMENT, BUT

TYPE OF ITEM OR PRODUCT OR IN MORE THAN ONE WAY, THE RULES OF COMPETITIVE BIDDING WHICH REQUIRE THAT ALL BIDDERS HAVE AN EQUAL OPPORTUNITY TO COMPETE ON A COMMON BASIS DO NOT PRECLUDE CONSIDERATION OF THE LOWEST OFFER MEETING THE SPECIFICATIONS FROM A BIDDER WHO SUBMITS MORE THAN ONE SUCH OFFER. 33 COMP. GEN. 499; B-13373, NOVEMBER 30, 1940.

UNDER THE IFB AS AMENDED, THE GOVERNMENT'S REQUIREMENTS COULD BE MET BY A BID OFFERING EITHER OF THE TWO TESTS, NO PREFERENCE BEING STATED BY BPA FOR EITHER TEST. ACCORDINGLY, A BID WHICH OFFERED THE SURGE TEST WAS RESPONSIVE AS WAS A BID WHICH OFFERED A PREVIOUSLY APPROVED 60 CYCLE TEST AT 760 KV OR HIGHER VOLTAGE. THE EFFECT, THEREFORE, OF THE LUMP-SUM BID PRICE REDUCTION PROVISION IN I-T-E'S BID WAS TO EXTEND TO THE GOVERNMENT A RESPONSIVE OFFER TO PERFORM AT A PRICE OF $221,756 BASED ON ACCEPTANCE OF I-T-E'S PREVIOUSLY APPROVED 60-CYCLE TEST AT 795 KV, WHICH OFFER WAS IN ADDITION TO THE RESPONSIVE OFFER TO PERFORM AT A PRICE OF $223,756 BASED ON COMPLIANCE WITH THE SURGE TEST REQUIREMENT, BOTH OFFERS BEING PREMISED ON AWARD OF ALL ITEMS AS PERMITTED BY THE IFB. FURTHER, SINCE THE DECISION AS TO WHICH OFFER WOULD BE SELECTED WAS TO BE MADE BY THE GOVERNMENT, IT IS APPARENT THAT NO OPTION IN THIS RESPECT WAS RETAINED BY I-T-E AS URGED BY ALLIS-CHALMERS. IN THE CIRCUMSTANCES, IT IS OUR VIEW THAT THE AWARD TO I-T-E OF A CONTRACT FOR ALL ITEMS AT ITS REDUCED LUMP- SUM BID PRICE OF $223,756, BASED ON ACCEPTANCE BY BPA OF THE PREVIOUSLY APPROVED 60-CYCLE TEST, WAS PROPER AND IN ACCORD WITH THE REQUIREMENT IN 40 U.S.C. 253(B) THAT AWARD UNDER AN ADVERTISED PROCUREMENT BE THE MOST ADVANTAGEOUS TO THE GOVERNMENT.

IT IS SUGGESTED, HOWEVER, THAT SINCE THE GOVERNMENT'S MINIMUM NEEDS CAN BE MET BY THE 60-CYCLE TEST, WHICH APPEARS TO BE LESS COSTLY THAN THE 1050 KV SURGE TEST, CONSIDERATION SHOULD BE GIVEN TO USING ONLY THE 60-CYCLE TEST IN FUTURE PROCUREMENTS.

THE FILE FORWARDED WITH THE DEPUTY ASSISTANT SECRETARY'S LETTER IS RETURNED.