B-168310, FEB. 13, 1970

B-168310, FEB. 13, 1970

BID PROTEST--EVALUATION--FREIGHT RATES DECISION DENYING PROTEST OF LEK CORPORATION AGAINST METHOD OF COMPUTING TRANSPORTATION CHARGES BY ARMY ELECTRONICS COMMAND ON LOW BID. PROTESTANT WHO WAS SECOND LOW UNEVALUATED BID AND WHO WAS DISPLACED AS RESULT OF TRANSPORTATION EVALUATION MUST HAVE PROTEST DENIED SINCE CAREFUL REVIEW OF TRANSPORTATION EVALUATION DOES NOT INDICATE THAT FREIGHT RATES USED WERE NOT APPLICABLE OR NOT THE BEST AVAILABLE. CONTRACTING OFFICER, ACTING IN GOOD FAITH, HAS RIGHT TO RELY ON EVALUATION PREPARED BY TRANSPORTATION EXPERTS.

TO LEK CORPORATION:

REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 4, 1969, WITH ENCLOSURE, PROTESTING AGAINST THE AWARD OF A CONTRACT TO ANOTHER FIRM UNDER SOLICITATION NO. DAAB05-70-B-0301, ISSUED BY THE UNITED STATES ARMY ELECTRONICS COMMAND, PHILADELPHIA, PENNSYLVANIA.

THE SOLICITATION WAS ISSUED ON JULY 30, 1969, COVERING A REQUIREMENT FOR 70 EACH SHELTER FACILITY ELECTRICAL EQUIPMENT S-330( )/TRC-117(V) AND 34 EACH SHELTER ELECTRICAL EQUIPMENT S-298( )/TRC 110(V) AND CALLING FOR BIDS ON AN F.O.B. ORIGIN BASIS. OF THE 92 SOURCES SOLICITED 11 BIDS WERE RECEIVED. THE SOLICITATION PROVIDED FOR AWARD ON THE BASIS OF THE LOWEST EVALUATED BID AFTER CONSIDERATION OF TRANSPORTATION CHARGES AND DISCOUNTS. THE TRANSPORTATION CHARGES WERE FOR THE TRANSPORT OF 104 GOVERNMENT FURNISHED SHELTERS (HEREAFTER REFERRED TO AS GFP SHELTERS) FROM TOBYHANNA, PENNSYLVANIA, TO THE BIDDERS' PLANT, AND TRANSPORT OF THE ITEMS BEING PROCURED FROM THE BIDDERS' PLANT TO TOBYHANNA. FOR EVALUATION PURPOSES THE SHIPPING WEIGHT OF THE S-330( )/TRC-117 (V)EQUIPMENT WAS SET AT 4,055 POUNDS EACH, AND FOR THE S-298( )/TRC-110(V) EQUIPMENT IT WAS SET AT 4,125 POUNDS FOR EACH ITEM,WHILE THE SHIPPING WEIGHT OF THE GFP SHELTERS WAS 1,310 POUNDS (UNCRATED) AND 2,935 POUNDS (CRATED).

YOUR BID PRICE OF $542,752.00 WAS THE LOW UNEVALUATED BID, WHILE PIASECKI AIRCRAFT CORPORATION, MAYFIELD ELECTRONICS DIVISION (PIASECKI), WAS THE SECOND LOW BIDDER AT $546,623.33. AFTER SUBTRACTION OF A 1/2 OF 1 PERCENT PROMPT PAYMENT DISCOUNT, AND ADDITION OF TRANSPORTATION CHARGES OF $2,774.00, PIASECKI'S EVALUATED BID WAS $546,664.21. AFTER THE ADDITION OF TRANSPORTATION CHARGES OF $7,161.56 (YOU DID NOT OFFER A DISCOUNT), YOUR EVALUATED BID WAS $549,913.56. AWARD WAS THEREFORE MADE TO PIASECKI ON OCTOBER 30, 1969, IN THE AMOUNT OF $546,623.33.

IN YOUR LETTER OF NOVEMBER 4 YOU QUESTION THE "UNBELIEVABLE LOW COST OF $2,774" (FREIGHT CHARGE) WHICH WAS ADDED TO PIASECKI'S BID. YOU POINT OUT THAT THIS AMOUNTS TO ONLY $39 PER TRAILER LOAD, WHEREAS YOU HAD OBTAINED QUOTATIONS FROM TWO TRUCKING COMPANIES PRESENTLY HAULING SHELTERS ON GOVERNMENT BILLS OF LADING AND THAT BOTH, ON THE BASIS OF THREE SHELTERS TO A LOAD, QUOTED A PRICE OF $100 MINIMUM PER TRAILER LOAD TO EITHER YOUR PLANT AT PHILADELPHIA OR PIASECKI'S PLANT AT MAYFIELD, PENNSYLVANIA, FOR A TOTAL COST OF $7,000.

FROM OUR EXAMINATION OF THE RECORDS IT APPEARS THAT THE CONTRACTING OFFICER REQUESTED AND OBTAINED A TRANSPORTATION EVALUATION PURSUANT TO THE FOLLOWING PROVISION OF THE ARMED SERVICES PROCUREMENT REGULATION (ASPR):

"ASPR 19-103 RESPONSIBILITIES OF THE CONTRACTING OFFICER. THE CONTRACTING OFFICER SHALL OBTAIN TRAFFIC MANAGEMENT ADVICE, ASSISTANCE, AND TRANSPORTATION FACTORS REQUIRED FOR SOLICITATIONS AND AWARDS, AND THE ADMINISTRATION, MODIFICATION, AND TERMINATION OF CONTRACTS, INCLUDING THE MOVEMENT OF PROPERTY BY THE GOVERNMENT TO AND FROM CONTRACTOR'S PLANTS. THIS IS ESPECIALLY IMPORTANT BEFORE MAKING AN INITIAL PROCUREMENT OF UNUSUALLY LARGE, HEAVY, HIGH, WIDE, OR LONG SUPPLIES, OR THOSE WITH SENSITIVE OR DANGEROUS CHARACTERISTICS. ADDITIONAL COSTS ARISING FROM FACTORS SUCH AS THE USE OF SPECIAL EQUIPMENT, EXCESS BLOCKING AND BRACING MATERIAL, CIRCUITOUS ROUTING, ETC; INCIDENT TO SHIPMENT OF SUCH SUPPLIES SHALL ALSO BE CONSIDERED, IN CONJUNCTION, WITH THE FREIGHT RATE, IN DETERMINING TOTAL TRANSPORTATION COSTS."

THE CONTRACTING OFFICER RECEIVED THE TRANSPORTATION EVALUATION ON OCTOBER 8, 1969. HOWEVER, SINCE IT DISPLACED YOUR FIRM AS LOW BIDDER, HE REQUESTED A VERIFICATION OF THE EVALUATION. THE TRANSPORTATION OFFICER CONFIRMED THE EVALUATION ON OCTOBER 20, 1969. ACCORDING TO THE TRANSPORTATION OFFICER, RATES WERE REQUESTED FROM EASTERN AREA MILITARY TRAFFIC MANAGEMENT AND TERMINAL SERVICE (EAMTMTS), BROOKLYN, NEW YORK, AND WE HAVE EXAMINED THE APPLICABLE TRANSPORTATION WORKSHEETS, WHICH CONTAIN CALCULATIONS AND INFORMATION UTILIZED TO EVALUATE EACH BID FOR EACH MODE OF TRANSPORTATION AND EACH TRANSPORTATION COMPANY. THESE WORKSHEETS INDICATE THAT THE AETNA FREIGHT LINES, INC. (AETNA), OPERATORS OF S&E MCCORMICK, SECTION 22 QUOTATION, Q-9 ON FILE AT EAMTMTS HAD THE LOWEST CHARGES OF ALL THE TRANSPORTATION COMPANIES, INCLUDING THOSE CITED BY YOU. USE OF AETNA'S RATES PRODUCED THE LOWEST CHARGES FOR BOTH YOUR FIRM AND PIASECKI, SINCE ALL OTHER CARRIERS CHARGED IN EXCESS OF $100 PER TRUCKLOAD. THE RATE CITED BY AETNA IS ?95 PER MILE ON WEIGHT UP TO 24,000 POUNDS (APPLICABLE TO THE PRESENT SITUATION) WITH A MINIMUM MILEAGE CHARGE OF $38 PER TRUCKLOAD FOR ANY DISTANCE UNDER 40 MILES. IN VIEW OF THE FACT THAT PIASECKI'S PLANT IS LOCATED IN MAYFIELD, PENNSYLVANIA, THE MINIMUM OF $38 PER TRUCKLOAD WAS ADDED TO PIASECKI'S BID. HOWEVER, SINCE YOUR FIRM IS LOCATED IN PHILADELPHIA, WHICH IS 104 MILES FROM TOBYHANNA, A CHARGE OF ?95 PER MILE, OR $98.80 PER TRUCKLOAD, WAS ADDED TO YOUR BID. APPLYING THESE CHARGES AGAINST THE NUMBER OF REQUIRED TRUCKLOADS, COMPUTED ON THE BASIS OF A MAXIMUM NUMBER OF THREE END ITEMS OR GFP SHELTERS PER TRUCKLOAD DELIVERED IN ACCORDANCE WITH THE MONTHLY DELIVERY SCHEDULES, GIVES THE FOLLOWING TOTAL COSTS: MAYFIELD, PA. - TOTAL TRANSPORTATION CHARGES

$2,774.00

GFP - TOBYHANNA, PA. TO MAYFIELD, PA.

37 TRUCKLOADS X $38.00 PER TRUCKLOAD 1,406.00

END ITEM - MAYFIELD, PA. TO TOBYHANNA, PA.

36 TRUCKLOADS X $38.00 PER TRUCKLOAD 1,368.00 PHILADELPHIA, PA. - TOTAL TRANSPORTATION CHARGES 7,161.56

GFP - TOBYHANNA, PA. TO PHILADELPHIA, PA.

35 TRUCKLOADS X $98.80 PER TRUCKLOAD 3,458.00

2 LESS TRUCKLOADS X $73.38 EACH 146.76

(MIDDLE ATLANTIC GOVERNMENT RATE

TARIFF 3F) 3.604.76

END ITEM - PHILADELPHIA, PA. TO

TOBYHANNA, PA.

36 TRUCKLOADS X $98.80 PER TRUCKLOAD 3,556.80

ASPR 19-301.1 (A) STATES, IN PERTINENT PART, THAT:

"(A) TO AFFORD PROPER ANALYSIS AND CONSIDERATION OF TRANSPORTATION FACTORS, THE CONTRACTING OFFICER SHALL CONSIDER TRANSPORTATION RATES AND RELATED COSTS IN THE EVALUATION OF F.O.B. ORIGIN BIDS AND PROPOSALS. THE BEST AVAILABLE TRANSPORTATION RATES AND RELATED COSTS IN EFFECT OR TO BECOME EFFECTIVE PRIOR TO THE EXPECTED DATE OF INITIAL SHIPMENT AND ON FILE OR PUBLISHED AT THE DATE OF THE BID OPENING, SHALL BE USED IN THE EVALUATION. * * *"

AS A RESULT OF A CAREFUL REVIEW OF THE TRANSPORTATION EVALUATION, WHICH INCLUDES THE RATES OF AETNA ON FILE AT EAMTMTS, WE ARE UNABLE TO CONCLUDE THAT THESE RATES ARE NOT APPLICABLE TO THE PRESENT PROCUREMENT OR THAT THEY ARE NOT THE BEST AVAILABLE RATES. MOREOVER, WE HAVE HELD THAT A CONTRACTING OFFICER, ACTING IN GOOD FAITH, HAS A RIGHT TO RELY ON A TRANSPORTATION EVALUATION PREPARED BY TRANSPORTATION EXPERTS. 46 COMP. GEN. 123, 132 (1966). SEE ALSO B-149619, FEBRUARY 11, 1963.

ACCORDINGLY, SINCE WE FIND NO LEGAL BASIS TO QUESTION THE CONTRACT AWARDED TO PIASECKI, YOUR PROTEST MUST BE DENIED.