B-162569, NOV. 27, 1967

B-162569, NOV. 27, 1967

BIDS - REJECTION AND READVERTISEMENT - JUSTIFICATION DECISION TO IMC MAGNETICS CORPORATION DENYING PROTEST AGAINST CANCELLATION OF INVITATION FOR INSTRUCTION PLATES AND BLOWER ASSEMBLIES BY ARMY TANK-AUTOMOTIVE COMMAND. WHERE, AFTER OPENING OF BIDS, IT WAS DISCOVERED THAT REQUIREMENTS DIFFERED MATERIALLY FROM THE INTENDED QUANTITIES, THAT THERE WAS AN ERROR IN THE FEDERAL STOCK NUMBER AND THAT ONE ITEM WAS NOT REQUIRED, CANCELLATION OF THE PROCUREMENT UNDER ASPR SEC. 2-404.1 (B) (III) WAS DETERMINED TO BE PROPER. TO INSIST THAT AN AGENCY GO THROUGH WITH A PROCUREMENT OF AN ITEM NOT REQUIRED WOULD BE CONTRARY TO INTEREST OF U.S. AND INDIVIDUAL TAX PAYERS. THEREFORE THE ADMINISTRATIVE DETERMINATION TO CANCEL WAS PROPER.

TO IMC MAGNETICS CORPORATION:

FURTHER REFERENCE IS MADE TO YOUR TELEGRAM OF SEPTEMBER 26, 1967, AND LETTER OF OCTOBER 12, 1967, PROTESTING AGAINST THE AWARD OF A CONTRACT TO ANY OTHER BIDDER UNDER INVITATION FOR BIDS NO. DA-AE07-68-B 0096, ISSUED ON JULY 24, 1967, BY THE UNITED STATES ARMY TANK AUTOMOTIVE COMMAND, WARREN, MICHIGAN, FOR BLOWER ASSEMBLIES. YOUR LETTER OF OCTOBER 12 STATES: YOUR LETTER OF OCTOBER 12 STATES: "WE HAVE BEEN INFORMED VERBALLY BY THE COGNIZANT PROCUREMENT PERSONNEL AT WARREN, MICHIGAN THAT THE LOCAL DEFENSE CONTRACT ADMINISTRATION SERVICES DISTRICT, GARDEN CITY, LONG ISLAND, NEW YORK DID NOT RECOMMEND THE AWARD TO IMC MAGNETICS CORP.' IT IS YOUR POSITION THAT YOU SHOULD RECEIVE THE AWARD SINCE YOU ARETHE LOW BIDDER. ACCORDINGLY, YOU HAVE PROTESTED ANY DETERMINATION WHICH WOULD RESULT IN AN AWARD TO ANOTHER BIDDER.

WE HAVE BEEN INFORMED THAT THE BLOWER ASSEMBLIES, THE SUBJECT OF THE INSTANT PROCUREMENT, WERE GIVEN THE SAME FEDERAL STOCK NUMBER AS INSTRUCTION PLATES, AN ENTIRELY DIFFERENT ITEM. SINCE THE QUANTITIES SPECIFIED IN THE INVITATION COMPRISE REQUIREMENTS FOR BOTH INSTRUCTION PLATES AND BLOWER ASSEMBLIES, THEY DIFFER MATERIALLY FROM THE INTENDED QUANTITIES. FURTHER, WE HAVE BEEN ADVISED BY LETTER OF NOVEMBER 14, 1967, FROM THE ARMY MATERIAL COMMAND THAT A RECENT CHECK REVEALS NO CURRENT REQUIREMENTS FOR BLOWER ASSEMBLIES. IN THE CIRCUMSTANCES IT HAS BEEN ADMINISTRATIVELY DETERMINED TO BE IN THE GOVERNMENT'S BEST INTEREST TO CANCEL THE INSTANT INVITATION PURSUANT TO ARMED SERVICES PROCUREMENT REGULATION (ASPR) SECTION 2-404.1 (B) III). THIS SECTION OF ASPR PROVIDES THAT AN INVITATION MAY BE CANCELLED AFTER BID OPENING IF THE SUPPLIES OR SERVICES BEING PROCURED ARE NO LONGER REQUIRED.

WE HAVE ALSO BEEN ADVISED THAT IT IS NOT POSSIBLE AT THIS TIME TO PROJECT FUTURE REQUIREMENTS FOR BLOWER ASSEMBLIES. HOWEVER, WE HAVE BEEN ASSURED THAT IN THE EVENT THAT THERE IS A FUTURE SOLICITATION FOR BLOWER ASSEMBLIES, YOU WILL BE AFFORDED THE OPPORTUNITY TO SUBMIT A BID. THE FEDERAL STOCK NUMBER FOR BLOWER ASSEMBLIES WILL BE CORRECTED TO AVOID A REPETITION OF THE INSTANT SITUATION.

WHILE WE REGRET THAT THE ABSENCE OF A REQUIREMENT WAS NOT DISCOVERED UNTIL AFTER BIDS HAD BEEN DISCLOSED, WE THINK YOU WILL AGREE THAT TO INSIST THAT AN AGENCY GO THROUGH WITH THE PROCUREMENT OF AN ITEM FOUND NOT TO BE REQUIRED WOULD BE CONTRARY TO THE INTEREST OF THE UNITED STATES AND THE INDIVIDUAL TAX PAYERS. THEREFORE, AND IN VIEW OF THE CLEAR LANGUAGE OF ASPR, WE FIND NO LEGAL OBJECTION TO THE ADMINISTRATIVE ACTION TAKEN.