B-167291(3), DEC. 1, 1969

B-167291(3): Dec 1, 1969

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INFORMATION ALTHOUGH REJECTED LOW OFFEROR'S PROTEST AGAINST NEGOTIATED CONTRACT AWARD FOR NAVY MOTORS WAS DENIED. BECAUSE PROTESTANT'S OFFER WAS SUBSTANTIALLY LOWER AND PROCUREMENT WAS NEGOTIATED. IT IS BELIEVED DEFENSE CONSTRUCTION SUPPLY CENTER CONTRACTING OFFICER SHOULD HAVE MADE AFFIRMATIVE EFFORT TO ASCERTAIN. IT IS SUGGESTED TO DEFENSE SUPPLY AGENCY DIRECTOR THAT MORE CONSIDERATION BE GIVEN IN FUTURE NEGOTIATED PROCUREMENTS TO ACQUISITION OF ADDITIONAL INFORMATION FROM LOW OFFERORS THAT MAY BE NECESSARY TO MAKE PROPER EVALUATION OF THEIR PROPOSALS PRIOR TO REJECTION. TO GENERAL HEDLUND: REFERENCE IS MADE TO A LETTER (YOUR REFERENCE DSAH-G) DATED JULY 29. ENCLOSED IS A COPY OF OUR DECISION OF TODAY TO IMC MAGNETICS CORPORATION.

B-167291(3), DEC. 1, 1969

NEGOTIATION--EVALUATION FACTORS--INFORMATION ALTHOUGH REJECTED LOW OFFEROR'S PROTEST AGAINST NEGOTIATED CONTRACT AWARD FOR NAVY MOTORS WAS DENIED, BECAUSE PROTESTANT'S OFFER WAS SUBSTANTIALLY LOWER AND PROCUREMENT WAS NEGOTIATED, IT IS BELIEVED DEFENSE CONSTRUCTION SUPPLY CENTER CONTRACTING OFFICER SHOULD HAVE MADE AFFIRMATIVE EFFORT TO ASCERTAIN, AND OBTAIN, PRECISE INFORMATION NEEDED TO ESTABLISH ACCEPTABILITY OR UNACCEPTABILITY OF PROTESTANT'S PRODUCT PRIOR TO REJECTION, AND IT IS SUGGESTED TO DEFENSE SUPPLY AGENCY DIRECTOR THAT MORE CONSIDERATION BE GIVEN IN FUTURE NEGOTIATED PROCUREMENTS TO ACQUISITION OF ADDITIONAL INFORMATION FROM LOW OFFERORS THAT MAY BE NECESSARY TO MAKE PROPER EVALUATION OF THEIR PROPOSALS PRIOR TO REJECTION.

TO GENERAL HEDLUND:

REFERENCE IS MADE TO A LETTER (YOUR REFERENCE DSAH-G) DATED JULY 29, 1969, WITH ENCLOSURES, FROM YOUR ASSISTANT COUNSEL, SUBMITTING A REPORT CONCERNING THE PROTEST OF IMC MAGNETICS CORPORATION (IMC) AGAINST THE AWARD OF A CONTRACT TO NORTHFIELD ELECTRIC MOTOR COMPANY UNDER REQUEST FOR PROPOSALS (RFP) NO. DSA 700-69-R-4718, ISSUED BY THE DEFENSE CONSTRUCTION SUPPLY CENTER (DCSC), COLUMBUS, OHIO.

ENCLOSED IS A COPY OF OUR DECISION OF TODAY TO IMC MAGNETICS CORPORATION, DENYING ITS PROTEST. WHILE, WE CONCLUDED THAT THE CONTRACTING OFFICER DID NOT ABUSE HIS ADMINISTRATIVE DISCRETION IN REJECTING THE IMC PROPOSAL, IT SHOULD BE NOTED THAT ALTHOUGH FOUR MONTHS ELAPSED BETWEEN RECEIPT BY DCSC OF THE NAVY'S ADVICE THAT IMC'S PRODUCT COULD NOT BE EVALUATED FROM THE DRAWINGS AND THE TIME OF CONTRACT AWARD, IMC WAS NOT ASKED FOR FURTHER INFORMATION WHICH MIGHT ESTABLISH THE ACCEPTABILITY OF ITS PRODUCT NOR WAS NAVY ASKED TO IDENTIFY THE ESSENTIAL CHARACTERISTICS OF THE MOTOR REQUIRED.

SINCE THE PROCUREMENT WAS TO BE MADE UNDER NEGOTIATION PROCEDURES AND IMC'S OFFER WAS SUBSTANTIALLY LOW, WE BELIEVE THAT THE DCSC CONTRACTING OFFICER SHOULD HAVE MADE AN AFFIRMATIVE EFFORT TO ASCERTAIN, AND OBTAIN, THE PRECISE INFORMATION NEEDED TO ESTABLISH THE ACCEPTABILITY OR UNACCEPTABILITY OF IMC'S PRODUCT PRIOR TO REJECTION OF ITS PROPOSAL. SUGGEST THAT IN FUTURE NEGOTIATED PROCUREMENTS MORE CONSIDERATION BE GIVEN TO OBTAINING ADDITIONAL INFORMATION FROM THE LOW OFFERORS THAT MAY BE NECESSARY TO MAKE A PROPER EVALUATION OF THEIR PROPOSALS, PRIOR TO REJECTION OF THEIR PROPOSALS.