B-170664, OCT. 29, 1970

B-170664: Oct 29, 1970

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1970 WERE DELINQUENT - THE REJECTION OF ITS BID ON THE BASIS OF NONRESPONSIBILITY WAS JUSTIFIED. INC.: FURTHER REFERENCE IS MADE TO YOUR LETTERS OF AUGUST 21 AND SEPTEMBER 1. THE INVITATION WAS ISSUED ON APRIL 29. OFFERS WERE SOLICITED FROM A TOTAL OF 67 POTENTIAL SOURCES OF SUPPLY AND 16 BIDS WERE RECEIVED AND OPENED ON MAY 27. THE FIVE LOW BIDS WERE AS FOLLOWS: BIDDER UNIT PRICE TOTAL AMOUNT ARJAY MACHINE CO. WERE REJECTED BASED ON DEFENSE CONTRACT ADMINISTRATION SERVICES REGION (DCASR) PREAWARD SURVEYS DETERMINING THESE FIRMS TO BE NONRESPONSIBLE. A PREAWARD SURVEY REPORT ON YOUR FIRM WAS REQUESTED ON JULY 14. YOUR FIRM COMPLETED 103 CONTRACTS OF WHICH 35 (34 PERCENT) WERE DELINQUENT.

B-170664, OCT. 29, 1970

BID PROTEST - BIDDER RESPONSIBILITY DENIAL OF PROTEST AGAINST THE REJECTION OF BID BY NAVY SHIPS PARTS CONTROL CENTER REQUESTING 328 BEARING RAMS. WHERE THE RECORD REVEALS THAT PROTESTANT HAS A RECORD OF DELINQUENCY 35 OUT OF 103 CONTRACTS FOR THE PERIOD JAN. 1 TO JULY 27, 1970 WERE DELINQUENT - THE REJECTION OF ITS BID ON THE BASIS OF NONRESPONSIBILITY WAS JUSTIFIED.

TO ALTON IRON WORKS, INC.:

FURTHER REFERENCE IS MADE TO YOUR LETTERS OF AUGUST 21 AND SEPTEMBER 1, 1970, PROTESTING THE REJECTION OF YOUR BID UNDER INVITATION FOR BIDS NO. N00104-70-B-1921, ISSUED BY THE UNITED STATES NAVY SHIPS PARTS CONTROL CENTER, MECHANICSBURG, PENNSYLVANIA.

THE INVITATION WAS ISSUED ON APRIL 29, 1970, AS A UNILATERAL SMALL BUSINESS SET-ASIDE AND REQUESTED BIDS FOR A QUANTITY OF 328 BEARING RACES. OFFERS WERE SOLICITED FROM A TOTAL OF 67 POTENTIAL SOURCES OF SUPPLY AND 16 BIDS WERE RECEIVED AND OPENED ON MAY 27, 1970. THE FIVE LOW BIDS WERE AS FOLLOWS:

BIDDER UNIT PRICE TOTAL AMOUNT

ARJAY MACHINE CO., INC. $17.87 $ 5,861.36

KANEK TOOL CORP. 23.00 7,544.00

EASTON MACHINE CORP. 28.23 9,259.44

ALTON IRON WORKS, INC. 30.00 9,840.00

ACAP INSTRUMENT CORP. 31.50 10,332.00

THE LOW BIDS OF ARJAY MACHINE CO., INC., KANEK TOOL CORP., AND EASTON MACHINE CORP. WERE REJECTED BASED ON DEFENSE CONTRACT ADMINISTRATION SERVICES REGION (DCASR) PREAWARD SURVEYS DETERMINING THESE FIRMS TO BE NONRESPONSIBLE.

A PREAWARD SURVEY REPORT ON YOUR FIRM WAS REQUESTED ON JULY 14, 1970, OF DCASR, GARDEN CITY, LONG ISLAND, NEW YORK. THE PREAWARD SURVEY DATED JULY 27, 1970, RECOMMENDED THAT NO AWARD BE MADE TO YOUR FIRM DUE TO UNSATISFACTORY PRODUCTION CAPABILITY, PURCHASING AND SUBCONTRACTING, PERFORMANCE RECORD, AND ABILITY TO MEET THE REQUIRED DELIVERY SCHEDULE. THE SURVEY FURTHER REVEALED THAT FOR THE PERIOD FROM JANUARY 1 TO JULY 27, 1970, YOUR FIRM COMPLETED 103 CONTRACTS OF WHICH 35 (34 PERCENT) WERE DELINQUENT. IT IS REPORTED THAT THE NUMBER OF DELINQUENT CONTRACTS WOULD HAVE BEEN GREATER HAD NOT RESCHEDULING BEEN RECEIVED BY YOU FOR OTHER DELINQUENT CONTRACTS. BUT FOR THE RESCHEDULING THE NUMBER OF DELINQUENT CONTRACTS WOULD HAVE BEEN INCREASED BY 21, OR A TOTAL DELINQUENCY OF 54 PERCENT. AT THE TIME OF THE PREAWARD SURVEY, DCASR, GARDEN CITY, WAS ADMINISTERING 80 CONTRACTS WITH YOUR FIRM OF WHICH 11 (APPROXIMATELY 14 PERCENT) WERE DELINQUENT. IT WAS CONCLUDED THAT YOUR ABILITY TO MEET THE REQUIRED DELIVERY SCHEDULE OF A NEW PROCUREMENT AWARD WAS QUESTIONABLE.

PARAGRAPH 1-904.1 OF THE ARMED SERVICES PROCUREMENT REGULATION (ASPR) PRECLUDES AN AWARD OF THIS KIND UNLESS THE CONTRACTING OFFICER FIRST MAKES AN AFFIRMATIVE DETERMINATION THAT THE PROSPECTIVE CONTRACTOR IS RESPONSIBLE UNDER THE CRITERIA SET OUT IN ASPR 1-903. ONE OF THOSE SET OUT AT ASPR 1-903.1(II) IS THAT A PROSPECTIVE CONTRACTOR TO QUALIFY AS RESPONSIBLE MUST "BE ABLE TO COMPLY WITH THE REQUIRED OR PROPOSED DELIVERY OR PERFORMANCE SCHEDULE." ANOTHER REQUIREMENT SET OUT AT ASPR 1- 903.1(III) IS THAT A PROSPECTIVE CONTRACTOR MUST "HAVE A SATISFACTORY RECORD OF PERFORMANCE (CONTRACTORS WHO ARE SERIOUSLY DEFICIENT IN CURRENT CONTRACT PERFORMANCE, WHEN THE NUMBER OF CONTRACTS AND THE EXTENT OF DEFICIENCY OF EACH ARE CONSIDERED, SHALL, IN THE ABSENCE OF EVIDENCE TO THE CONTRARY OR CIRCUMSTANCES PROPERLY BEYOND THE CONTROL OF THE CONTRACTOR, BE PRESUMED TO BE UNABLE TO MEET THIS REQUIREMENT)."

IN VIEW OF THE RECORD CITED ABOVE AND BASED ON INFORMATION AVAILABLE AND KNOWN TO THE CONTRACTING OFFICER AT THE TIME, AN AFFIRMATIVE DETERMINATION COULD NOT BE MADE UNDER ASPR 1-904.1 THAT YOUR FIRM WAS A RESPONSIBLE BIDDER AND YOUR BID WAS THEREFORE REJECTED.

WE FIND NO EVIDENCE THAT THE PREAWARD SURVEY WAS IRREGULAR, INACCURATE, OR UNFAIR AND, ON THE BASIS OF THE PRESENT RECORD, WE MUST CONCLUDE THAT THE DETERMINATION OF YOUR LACK OF RESPONSIBILITY IS NOT SUBJECT TO LEGAL OBJECTION. 43 COMP. GEN. 228 (1963); B-165386, NOVEMBER 26, 1968.

ACCORDINGLY, YOUR PROTEST IS DENIED.