B-167102(2), OCT. 10, 1969

B-167102(2): Oct 10, 1969

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FAILURE TO PROVIDE BECAUSE RECORD INDICATES CONTRACTING OFFICER WAS ON NOTICE BEFORE AWARD OF PROBLEM REGARDING PROGRESS PAYMENTS WHICH SHOULD HAVE BEEN RECOGNIZED AS HAVING ARISEN FROM HIS ERRONEOUS INTERPRETATION OF REGULATIONS CONCERNING PROGRESS PAYMENTS. SHOULD HAVE BEEN MORE CAREFULLY STUDIED AT THAT TIME AND CONSIDERATION GIVEN TO DESIRABILITY OF CANCELLATION OF INVITATION AND ISSUANCE OF NEW SOLICITATION TO PROVIDE FOR PROGRESS PAYMENTS. BIDDER SHOULD HAVE BEEN NOTIFIED IMMEDIATELY UPON BID BEING DECLARED NONRESPONSIVE SO THAT IT COULD HAVE IMMEDIATELY PROTESTED ACTION. WHICH WAS INCONSISTENT WITH REFERRAL OF BIDDER'S RESPONSIBILITY TO SMALL BUSINESS ADMINISTRATION. SECRETARY: REFERENCE IS MADE TO THE ADMINISTRATIVE REPORT DATED JUNE 13.

B-167102(2), OCT. 10, 1969

PAYMENTS--PROGRESS--FAILURE TO PROVIDE BECAUSE RECORD INDICATES CONTRACTING OFFICER WAS ON NOTICE BEFORE AWARD OF PROBLEM REGARDING PROGRESS PAYMENTS WHICH SHOULD HAVE BEEN RECOGNIZED AS HAVING ARISEN FROM HIS ERRONEOUS INTERPRETATION OF REGULATIONS CONCERNING PROGRESS PAYMENTS, SUCH REGULATIONS, ESPECIALLY ASPR E-504.1, SHOULD HAVE BEEN MORE CAREFULLY STUDIED AT THAT TIME AND CONSIDERATION GIVEN TO DESIRABILITY OF CANCELLATION OF INVITATION AND ISSUANCE OF NEW SOLICITATION TO PROVIDE FOR PROGRESS PAYMENTS. IN ANY EVENT, BIDDER SHOULD HAVE BEEN NOTIFIED IMMEDIATELY UPON BID BEING DECLARED NONRESPONSIVE SO THAT IT COULD HAVE IMMEDIATELY PROTESTED ACTION, WHICH WAS INCONSISTENT WITH REFERRAL OF BIDDER'S RESPONSIBILITY TO SMALL BUSINESS ADMINISTRATION.

TO MR. SECRETARY:

REFERENCE IS MADE TO THE ADMINISTRATIVE REPORT DATED JUNE 13, 1969, FROM MR. C. A. APPLEBY, DIRECTOR OF CONTRACTS, NAVAL ELECTRONIC SYSTEMS COMMAND, RELATIVE TO THE PROTEST OF REACTION INSTRUMENTS, INC., CONCERNING INVITATION FOR BIDS (IFB) NO. N00039-69-B-0014, ISSUED BY THE NAVAL ELECTRONICS SYSTEMS COMMAND.

ENCLOSED IS A COPY OF OUR DECISION OF TODAY TO THAT COMPANY DENYING ITS PROTEST.

THE RECORD INDICATES THAT THE CONTRACTING OFFICER WAS ON NOTICE BEFORE AWARD OF A PROBLEM REGARDING PROGRESS PAYMENTS WHICH SHOULD HAVE BEEN RECOGNIZED AS HAVING ARISEN FROM HIS ERRONEOUS INTERPRETATION OF THE REGULATIONS PERTAINING THERETO. IT IS OUR FEELING THAT THE REGULATIONS CONCERNING PROGRESS PAYMENTS, ESPECIALLY ASPR E-504.1, SHOULD HAVE BEEN MORE CAREFULLY STUDIED AT THAT TIME, AND CONSIDERATION GIVEN TO THE DESIRABILITY OF CANCELLATION OF THE IFB AND ISSUANCE OF A NEW SOLICITATION ALLOWING FOR PROGRESS PAYMENTS. IN ANY EVENT, WE FEEL THAT REACTION INSTRUMENTS, INC., SHOULD HAVE BEEN IMMEDIATELY NOTIFIED WHEN ITS BID WAS DECLARED NONRESPONSIVE SO THAT IT COULD HAVE IMMEDIATELY PROTESTED THAT ACTION, WHICH WAS, AS CONCEDED IN YOUR DEPARTMENT'S REPORT, INCONSISTENT WITH THE PRIOR REFERENCE OF THE MATTER OF THE BIDDER'S RESPONSIBILITY TO THE SMALL BUSINESS ADMINISTRATION.

THE FILE FURNISHED WITH THE ADMINISTRATIVE REPORT TO OUR OFFICE IS RETURNED.