B-166503, APR. 3, 1969

B-166503: Apr 3, 1969

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YOU HAVE REQUESTED OUR DECISION AS TO THE RESPONSIVENESS OF THE A-1 AMBULANCE SERVICE. THE AMBULANCE SERVICE WAS LISTED ON THE BID SCHEDULE AS GROUP I (ITEMS 1. 2 AND 3) AND THE PASSENGER SERVICE WAS LISTED AS GROUP II (ITEM 4). BIDS WERE REQUESTED AS FOLLOWS: UNIT QUANTITY UNIT PRICE AMOUNT "1. (THIS IS IN ADDITION TO BASIC 49. (THIS IS IN ADDITION TO BASIC 2975 PER RATE. -" IT IS ESTIMATED THAT THE NUMBER OF TRIPS DURING THE CONTRACTUAL PERIOD WILL BE APPROXIMATELY AS FOLLOWS: "DAY NIGHT APPROXIMATE TRIPS TRIPS DISTANCES 54 2 1 TO 5 MILES 792 92 6 TO 20 MILES 508 26 21 TO 30 MILES 988 31 TO 50 MILES 164 10 51 TO 150 MILES 18 2 151 TO 300 MILES" 1634 140 ITEM 3 COVERS OXYGEN. NO ESTIMATED QUANTITIES WERE SET FORTH.

B-166503, APR. 3, 1969

TO MR. A. C. SEVERSON:

BY LETTER DATED MARCH 20, 1969 (578 (134) (, WITH ENCLOSURES, YOU HAVE REQUESTED OUR DECISION AS TO THE RESPONSIVENESS OF THE A-1 AMBULANCE SERVICE, INCORPORATED, BID UNDER INVITATION FOR BIDS NO. 69 25 ISSUED BY YOUR OFFICE ON FEBRUARY 24, 1969, AND OPENED ON MARCH 14, 1969.

THE SUBJECT INVITATION REQUESTED BIDS FOR THE ONE-YEAR PERIOD APRIL 1, 1969, TO MARCH 31, 1970, FOR AMBULANCE SERVICE AND PATIENT PASSENGER CAR SERVICE FOR CHICAGO AND VICINITY AS SPECIFIED. THE AMBULANCE SERVICE WAS LISTED ON THE BID SCHEDULE AS GROUP I (ITEMS 1, 2 AND 3) AND THE PASSENGER SERVICE WAS LISTED AS GROUP II (ITEM 4). ON GROUP I, BIDS WERE REQUESTED AS FOLLOWS:

UNIT

QUANTITY UNIT PRICE AMOUNT "1. DAY RATES:

ANNUAL ESTIMATED QUANTITIES

(A) BASIC RATE, ANY TRIP, ONE 1774 PER

WAY ONLY (TRIPS) TRIP $----- $--- -

(B) RATE PER MILE, ONE WAY ONLY.

(THIS IS IN ADDITION TO BASIC 49,500 PER

RATE, ITEM 1 (A) ABOVE. (MILES) MILE $----- $--- -

2. NIGHT RATES:

(A) BASIC RATE, ANY TRIP, ONE WAY 138 PER

ONLY (TRIPS) TRIP $----- $-----

(B) RATE PER MILE, ONE WAY ONLY.

(THIS IS IN ADDITION TO BASIC 2975 PER

RATE, ITEM 2 (A) ABOVE. (MILES MILE $----- $-----" IT IS ESTIMATED THAT THE NUMBER OF TRIPS DURING THE CONTRACTUAL PERIOD WILL BE APPROXIMATELY AS FOLLOWS: "DAY

NIGHT APPROXIMATE TRIPS

TRIPS DISTANCES

54 2 1 TO 5 MILES

792 92 6 TO 20 MILES

508 26 21 TO 30 MILES

988 31 TO 50 MILES

164 10 51 TO 150 MILES

18 2 151 TO 300 MILES" 1634

140 ITEM 3 COVERS OXYGEN, PRICE PER TANK AS NEEDED. NO ESTIMATED QUANTITIES WERE SET FORTH.

WITH REGARD TO THE AWARD, THE INVITATION PROVIDED THAT THE ITEMS WOULD BE AWARDED IN THE AGGREGATE TO THE LOWEST BIDDER FOR EACH GROUP. ALSO, BIDDERS WERE INSTRUCTED TO STATE UNIT PRICES ON EACH ITEM ON WHICH QUOTING AND THE TOTAL PRICE QUOTED FOR ALL ITEMS IN THE GROUP.

THREE BIDS WERE RECEIVED ON GROUP I AND ONE BID ON GROUP II. SCULLY WALTON AMBULANCE IS THE SINGLE BIDDER ON GROUP II. ON GROUP I YOU FIND THAT A-1 AMBULANCE SERVICE, INCORPORATED, IS THE APPARENT LOW AGGREGATE BIDDER AND SCULLY-WALTON THE SECOND LOW BIDDER. (THE THIRD BIDDER QUOTED A PRICE TWICE AS HIGH AS THE NEXT LOW BID.) A-1 AMBULANCE BID ON A TRIP BASIS RATHER THAN ON A BASIC RATE PER TRIP PLUS MILEAGE. IN OTHER WORDS, A-1 AMBULANCE BID AS FOLLOWS: "DAY NIGHT APPROXIMATE TRIPS TRIPS DISTANCES UNIT TOTAL

54 2 1 TO 5 MILES 19 1,064

792 92 6 TO 20 MILES 22 19,448

508 26 21 TO 30 MILES 27 14,418

988 31 TO 50 MILES 30 3,196

164 10 51 TO 150 MILES 51 8,874

18 2 151 TO 300 MILES 140 2,820 1634 140 AGGREGATE TOTAL $49,820"

SCULLY-WALTON, ON THE OTHER HAND, BID ON A BASIC RATE PER TRIP PLUS MILEAGE ($18 PER TRIP PLUS $ .40 PER MILE), BOTH FOR DAY AND NIGHT TRIPS, A TOTAL AGGREGATE BID OF $55,406. YOU ARRIVE AT THE CONCLUSION THAT A-1 AMBULANCE IS THE LOW BIDDER "AFTER AVERAGING THE APPROXIMATE DISTANCES AND COMPUTING COSTS BY USING THE BASIC RATE AND RATE PER MILE" OF THE SCULLY- WALTON BID.

AS WE UNDERSTAND IT, YOU ARE PROPOSING TO EVALUATE THE SCULLY-WALTON BID AS FOLLOWS:

TOTAL 56 TRIPS AT AN AVERAGE OF 2.5 MILES $18 PLUS $ .40 PER MILE, OR $19 PER TRIP $ 1,064 884 TRIPS AT AN AVERAGE OF 13.5 MILES $18 PLUS $ .40 PER MILE, OR $23.40 PER TRIP

20,685 534 TRIPS OF 25 MILES $18 PLUS $ .40 PER MILE, OR $28 PER TRIP

14,952 106 TRIPS OF 40 MILES $18 PLUS $ .40 PER MILE, OR $32 PER TRIP 3,392 174 TRIPS OF 100 MILES $18 PLUS $ .40 PER MILE, OR $58 PER TRIP

10,092 20 TRIPS OF 225 MILES $18 PLUS $ .40 PER MILE, OR $108

2,160

TOTAL $52,345

FURTHER, YOU REPORT THAT IN THE PAST IT HAS BEEN YOUR POLICY ON AMBULANCE AND PASSENGER CAR SERVICE TO CONSIDER BIDS FROM BIDDERS QUOTING ON A TRIP BASIS; AND THAT, IN FACT, YOU INVITED THIS TYPE OF BIDDING (AS WELL AS BASIC RATE PLUS MILEAGE) ON GROUP II (ITEM 4) OF THIS INVITATION. OUR DECISION IS REQUESTED ON THE QUESTION WHETHER THE A-1 AMBULANCE BID MAY BE CONSIDERED FOR AWARD ON THE BASIS PROPOSED.

WE NOTE THAT ON GROUP II (PASSENGER CAR SERVICE) SCULLY-WALTON DID BID ON THE TRIP BASIS, ALTHOUGH THE INVITATION SCHEDULE ON GROUP II IS SET OUT MUCH LIKE GROUP I (EXCEPT THAT THE WORDS ,PER TRIP" APPEAR IN THE SCHEDULE BREAKDOWN OF "APPROXIMATE DISTANCES" FOR DAY AND NIGHT TRIPS). WE ALSO NOTE THAT THE "ANNUAL ESTIMATED QUANTITIES" STATED FOR GROUP I ARE NOT CORRECTLY STATED. THE TOTAL ESTIMATED DAY TRIPS SHOULD BE LISTED AS 1634, INSTEAD OF THE STATED 1774. THE MILEAGE FIGURES ARE SIMILARILY MISSTATED. AS A RESULT, SCULLY-WALTON'S AGGREGATE BID FOR GROUP I SHOULD BE ADJUSTED TO TAKE THIS INTO CONSIDERATION.

IDEALLY, THE GROUP I REQUIREMENT SHOULD BE RE-BID UNDER LESS CONFUSING BID TERMS, BUT THERE IS AN URGENT NEED FOR THESE AMBULANCE SERVICES. THE CIRCUMSTANCES, SINCE IT APPEARS BOTH A-1 AMBULANCE AND SCULLY-WALTON BID WITH THE UNDERSTANDING THAT TRIP RATE BIDS WERE ACCEPTABLE, WE OFFER NO OBJECTION TO THE CONSIDERATION OF A-1 AMBULANCE'S BID FOR AWARD ON THE BASIS PROPOSED.

WE SUGGEST THAT FUTURE INVITATIONS INFORM BIDDERS HOW COMPARATIVE EVALUATION OF BIDS ON A TRIP BASIS WITH THOSE ON A MILEAGE BASIS WILL BE MADE WHERE BIDDING ON BOTH BASES IS PERMITTED.