B-164293, AUG. 14, 1968

B-164293, AUG. 14, 1968

TO MR. STUART A. GOLDSTEIN:

REFERENCE IS MADE TO YOUR LETTER OF JULY 29, 1968, AND TO THE COPY OF A LETTER DATED MAY 9, 1968, TO THE BASE PROCUREMENT OFFICE, DOVER AIR FORCE BASE, PREVIOUSLY FURNISHED, REGARDING THE PROTEST OF RINALDI AND HAYES, INC., AGAINST AN AWARD TO FAIRFAX FUNERAL HOME, INC., UNDER INVITATION FOR BIDS F07603-68-B-0083.

THE INVITATION, ISSUED JANUARY 31, 1968, SOLICITED BIDS FOR MORTUARY SERVICES FOR THE PERIOD OF JULY 1, 1968, THROUGH JUNE 30, 1969. THE INVITATION SCHEDULE LISTED IN 12 DIFFERENT ITEMS THE ESTIMATED SUPPLIES, SERVICES AND TRANSPORTATION THE GOVERNMENT MIGHT REQUIRE DURING THE CONTRACT PERIOD. BIDDERS WERE REQUIRED TO BID ON EACH ITEM AND THE INVITATION PROVIDED FOR AWARD TO THE LOWEST RESPONSIBLE BIDDER ON AN AGGREGATE BASIS.

THE FAIRFAX FUNERAL HOME, INC., BID IN THE AGGREGATE AMOUNT OF $910,862.50 WAS THE LOWEST BID RECEIVED. THE RINALDI AND HAYES BID IN THE AGGREGATE AMOUNT OF $1,021,975 WAS THE FOURTH LOWEST BID RECEIVED.

RINALDI AND HAYES PROTESTED THAT THE INVITATION DID NOT EMPLOY REALISTIC ESTIMATES FOR ITEM 11 AND THAT THE PROCUREMENT SHOULD BE CANCELED AND READVERTISED. ITEM 11 IN THE INVITATION SCHEDULE STATED: "SUPPLIES, SERVICES ESTIMATED UNIT UNIT ESTIMATED AND TRANSPORTATION QUANTITY PRICE AMOUNT "FOR TRANSPORTATION 30,000 LOADED OF REMAINS BETWEEN

MILE" PROCESSING FACILITY AND ANY POINT WITHIN 200 MILES AS DESIGNATED BY THE CONTRACTING OFFICER.

IN SUPPORT OF THE PROTEST THAT THE ESTIMATED MILEAGE FOR ITEM 11 WAS UNDERESTIMATED, RINALDI AND HAYES STATED THAT THE ACTUAL MILEAGE FOR THE PREVIOUS 1-YEAR MORTUARY SERVICE CONTRACT AT DOVER AIR FORCE BASE WOULD TOTAL ABOUT 231,000 MILES AND THAT, BASED ON THE HIGHER NUMBER OF REMAINS TO BE PROCESSED UNDER THE IMMEDIATE INVITATION, THE TOTAL MILEAGE FOR A YEAR WOULD PROBABLY BE HIGHER. INASMUCH AS FAIRFAX FUNERAL HOME BID $1.25 PER MILE FOR ITEM 11, WHILE RINALDI AND HAYES BID $1 PER MILE FOR THE ITEM AND OTHER BIDDERS QUOTED $0.60 PER MILE FOR THE SAME ITEM, RINALDI AND HAYES CONTENDED THAT AN AWARD TO FAIRFAX FUNERAL HOME WOULD CAUSE THE GOVERNMENT TO PAY APPROXIMATELY $200,000 MORE THAN IF A CORRECT ESTIMATE WERE STATED IN ITEM 11 INSTEAD OF 30,000 MILES.

THE AIR FORCE AGREED THAT THE HEARSE MILEAGE FOR THE PREVIOUS YEAR APPROXIMATED ABOUT 200,000 MILES. HOWEVER, IT IS REPORTED THAT HEARSE TRANSPORTATION WILL BE GREATLY REDUCED FOR THE CURRENT YEAR SO THAT THE ESTIMATED MILEAGE WILL BE ABOUT 30,000 MILES. IN THAT CONNECTION, THE AIR FORCE HAS ADVISED THAT A DETERMINATION HAS BEEN MADE TO UTILIZE RAILROAD AND AIR SERVICES IN LIEU OF HEARSE SERVICES WHENEVER POSSIBLE.

THE INVITATION FOR BIDS WAS PREPARED THE LATTER PART OF DECEMBER 1967. THE OPERATIONS FROM JULY 1 TO DECEMBER 15, 1967, WERE STUDIED TO PREPARE THE ESTIMATE FOR ITEM 11. DURING THAT PERIOD 3,167 REMAINS WERE SHIPPED AND THE TOTAL MILEAGE USED FOR TRANSPORTING THOSE REMAINS WAS 86,517 MILES. THAT TOTAL WAS REDUCED BY 59,087 MILES TO DEDUCT FOR HEARSE SERVICES THAT WOULD BE REPLACED BY RAILROAD AND AIR SERVICES, FOR MILEAGE BEYOND THE 200-MILE RADIUS LIMITATION PROVIDED IN ITEM 11, FOR MILEAGE THAT WAS REIMBURSED BY OTHER SOURCES AND FOR MILEAGE ATTRIBUTABLE TO POOR PLANNING OR SCHEDULING BY THE CONTRACTOR. THE 27,430-MILE REMAINDER WAS DIVIDED BY THE 3,167 REMAINS WHICH WERE SHIPPED. THIS RESULTED IN A FIGURE OF 8.6 MILES PER REMAINS, WHICH WAS MULTIPLIED BY 4,950 REMAINS, THE ESTIMATED QUANTITY FOR THE IMMEDIATE INVITATION, TO ARRIVE AT A TOTAL OF 42,570 MILES. IN ENDEAVORING TO ARRIVE AT THE MOST PROBABLE MILEAGE, 25 PERCENT WAS DEDUCTED FROM 42,570 MILES AND THE REMAINDER WAS THEN ROUNDED OFF AT 30,000 MILES.

THE ESTIMATE INCLUDED IN THE INVITATION APPEARS TO HAVE RESULTED LARGELY FROM THE ESTIMATED SHARP CURTAILMENT IN HEARSE SERVICE PLANNED BY THE AIR FORCE. APPARENTLY THE RINALDI AND HAYES PROTEST WAS MADE WITHOUT ANY REALIZATION THAT WAS THE SITUATION.

IN VIEW OF THE ADMINISTRATIVE EXPLANATION FOR THE ESTIMATE IN THE INVITATION, THE PROTEST IS DENIED.