B-164836(2), AUG 17, 1971

B-164836(2): Aug 17, 1971

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HAS DENIED THE PROTEST BY CREDIT SERVICE BUREAU AGAINST THE AWARD OF A CONTRACT TO MERCHANTS CREDIT BUREAU AND THAT SUCCESSFUL BIDDER'S FAILURE TO BID ON A UNIT BASIS AS REQUIRED BY THE IFB MAY BE WAIVED UNDER FPR 1-2.405 WHERE THE TOTAL BID PRICE OF $1 PER YEAR IS LESS THAN THE LOWEST BID PRICE RECEIVED. SECRETARY: REFERENCE IS MADE TO LETTERS DATED JUNE 15. ENCLOSED IS A COPY OF OUR DECISION OF TODAY TO CREDIT SERVICE BUREAU DENYING THE PROTEST. THE RECORD BEFORE US CLEARLY SHOWS THAT THE LOW BID IS NOT THE PRODUCT OF A MISTAKE. SINCE MERCHANTS' TOTAL BID PRICE OF $1 IS LESS THAN THE LOWEST UNIT PRICE RECEIVED. MERCHANTS' FAILURE TO BID ON A UNIT BASIS AS REQUIRED BY THE INVITATION IS.

B-164836(2), AUG 17, 1971

BID PROTEST - BID RESPONSIVENESS ADVISING THAT THE COMP. GEN. HAS DENIED THE PROTEST BY CREDIT SERVICE BUREAU AGAINST THE AWARD OF A CONTRACT TO MERCHANTS CREDIT BUREAU AND THAT SUCCESSFUL BIDDER'S FAILURE TO BID ON A UNIT BASIS AS REQUIRED BY THE IFB MAY BE WAIVED UNDER FPR 1-2.405 WHERE THE TOTAL BID PRICE OF $1 PER YEAR IS LESS THAN THE LOWEST BID PRICE RECEIVED.

TO MR. SECRETARY:

REFERENCE IS MADE TO LETTERS DATED JUNE 15, JULY 6 AND 26, 1971, FROM THE CONTRACTING OFFICER AND THE DIRECTOR, MANAGEMENT AND OPERATIONS SYSTEMS DIVISION, FEDERAL HOUSING ADMINISTRATION, REPORTING ON THE PROTEST BY CREDIT SERVICE BUREAU AGAINST THE PROPOSED AWARD OF A CONTRACT TO ANOTHER FIRM UNDER IFB NO. HPMC-FHA-002-72.

ENCLOSED IS A COPY OF OUR DECISION OF TODAY TO CREDIT SERVICE BUREAU DENYING THE PROTEST.

IN ADDITION TO REPORTING ON THE PROTEST, THE ABOVE-REFERENCED LETTER OF JUNE 15 REQUESTS A DECISION AS TO THE ACCEPTABILITY OF THE BID OF MERCHANTS CREDIT BUREAU AT THE $1 PER YEAR PRICE FOR THE ORIGINAL REPORTS. THE RECORD BEFORE US CLEARLY SHOWS THAT THE LOW BID IS NOT THE PRODUCT OF A MISTAKE. FURTHER, SINCE MERCHANTS' TOTAL BID PRICE OF $1 IS LESS THAN THE LOWEST UNIT PRICE RECEIVED, MERCHANTS' FAILURE TO BID ON A UNIT BASIS AS REQUIRED BY THE INVITATION IS, IN OUR VIEW, AN IMMATERIAL VARIATION HAVING MERELY A TRIVIAL OR NEGLIGIBLE EFFECT ON PRICE, AND CAN THEREFORE BE WAIVED PURSUANT TO FEDERAL PROCUREMENT REGULATIONS 1-2.405. IN VIEW THEREOF, WE KNOW OF NO LEGAL PRINCIPLE REQUIRING THE REJECTION OF THE LOW BID IN THIS CASE.

THE FILE TRANSMITTED WITH THE REPORT OF JUNE 15 IS RETURNED.