B-170872, FEB 26, 1971

B-170872: Feb 26, 1971

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PROTESTANT DID NOT INDICATE IN ITS OFFER THAT THE CHARGE WAS INCLUDED IN ANY OF THE OTHER ITEMS. IT WAS NOT ARBITRARY FOR THE PROCURING ACTIVITY TO CONSIDER SUCH COSTS IN ESTIMATING THE TOTAL PRICE OF THE OFFER. THE PROTEST IS DENIED. TO GREENWOOD'S FLYING SERVICE: REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 1. THE OFFERS WERE SOLICITED ON A UNIT PRICE BASIS FOR EACH CATEGORY OF INSTRUCTION. OFFERS WERE RECEIVED FROM CHANTILLY AVIATION. THE UNIT PRICES SUBMITTED BY CHANTILLY AND YOUR FIRM WERE AS FOLLOWS: TYPE OF INSTRUCTION CHANTILLY AVIATION. PER STUDENT 76.50 PER STUDENT PLUS $7.00 PER STUDENT FOR TEXTBOOKS OFFERS WERE EVALUATED AS FOLLOWS: TYPE OF INSTRUCTION CHANTILLY AVIATION. 350 WAS AWARDED TO THAT FIRM ON THAT BASIS ON AUGUST 27.

B-170872, FEB 26, 1971

BID PROTEST - ADDED CHARGES DECISION DENYING PROTEST AGAINST AWARD OF A CONTRACT TO FURNISH FLIGHT, GROUND, AND CLASSROOM INSTRUCTION FOR 50 NAVY OFFICERS TO CHANTILLY AVIATION, INC. SINCE THE PROCURING ACTIVITY REQUESTED A UNIT PRICE FOR PREFLIGHT AND POST FLIGHT DISCUSSION PER STUDENT, AND PROTESTANT DID NOT INDICATE IN ITS OFFER THAT THE CHARGE WAS INCLUDED IN ANY OF THE OTHER ITEMS, IT WAS NOT ARBITRARY FOR THE PROCURING ACTIVITY TO CONSIDER SUCH COSTS IN ESTIMATING THE TOTAL PRICE OF THE OFFER. ACCORDINGLY, THE PROTEST IS DENIED.

TO GREENWOOD'S FLYING SERVICE:

REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 1, 1970, AND TELEGRAM OF SEPTEMBER 23, 1970, PROTESTING THE AWARD OF CONTRACT NO. N00022-71-C 0018 BY THE BUREAU OF NAVAL PERSONNEL, DEPARTMENT OF THE NAVY, TO CHANTILLY AVIATION, INC.

BY REQUEST FOR QUOTATIONS NO. N00022-71-Q-0062, DATED AUGUST 5, 1970, THE BUREAU OF NAVAL PERSONNEL SOLICITED FIXED PRICE OFFERS FOR FURNISHING FLIGHT, GROUND, AND CLASSROOM INSTRUCTION FOR 50 NAVY OFFICERS IN THE WASHINGTON, D. C., AREA UNDER THE NAVY'S AVIATION INDOCTRINATION PROGRAM DURING THE PERIOD OF SEPTEMBER 1, 1970, THROUGH JUNE 30, 1971. THE OFFERS WERE SOLICITED ON A UNIT PRICE BASIS FOR EACH CATEGORY OF INSTRUCTION.

OFFERS WERE RECEIVED FROM CHANTILLY AVIATION, INC., SUBURBAN AIR SERVICE, INC., AND YOUR FIRM. THE UNIT PRICES SUBMITTED BY CHANTILLY AND YOUR FIRM WERE AS FOLLOWS:

TYPE OF INSTRUCTION CHANTILLY AVIATION, INC. GREENWOOD'S FLYING SERVICE

SOLO $19.00/HR. (100-150 HP $15.00/HR. (C 150)

AIRCRAFT) 21.00/HR. (C-172)

DUAL 21.00/HR. (PIPER CUB 21.00/HR. (C 150)

PA-11)

26.00/HR. (OTHER PIPER 28.00/HR. (C 172)

& CESSNA

AIRCRAFT)

POST-FLIGHT 7.00/HR. 8.00/HR.

GROUND 1.25/HR. PER STUDENT 76.50 PER STUDENT

PLUS $7.00 PER STUDENT

FOR TEXTBOOKS

OFFERS WERE EVALUATED AS FOLLOWS:

TYPE OF INSTRUCTION CHANTILLY AVIATION, INC. GREENWOOD'S FLYING SERVICE

SOLO 4 HOURS X $19.00 $ 76.00 4 HOURS X $21.00 $ 84.00

DUAL 13 HOURS X $26.00 13 HOURS X $28.00

2 HOURS X $21.00 2 HOURS X $21.00

380.00 406.00

GROUND 10 HOURS X $ 1.25

BOOKS $7.00

19.50 76.50

PREFLIGHT & 6 1/3 HOURS X 6 1/3 HOURS X

POSTFLIGHT $7.00 44.10 $8.00 50.40

TOTAL PER STUDENT $519.60 $616.90 HOWEVER, CHANTILLY HAD INDICATED IN ITS OFFER AN INTENT TO PERFORM THE SERVICES AS EVALUATED FOR $507 PER STUDENT. ACCORDINGLY, CONTRACT NO. N00022-71-C-0018 IN THE TOTAL ESTIMATED AMOUNT OF $25,350 WAS AWARDED TO THAT FIRM ON THAT BASIS ON AUGUST 27, 1970.

BY TELEGRAM DATED SEPTEMBER 23, 1970, YOU PROTESTED THE CONTRACT AWARD TO CHANTILLY ON THE BASIS THAT YOUR QUOTATION WAS LOWER THAN THE TOTAL ESTIMATED PRICE OF $25,000 FOR FLIGHT AND GROUND INSTRUCTION OF 50 STUDENTS. IN A LETTER OF OCTOBER 1, 1970, YOU STATED THAT YOU QUOTED $22,575 FOR THE SERVICES SPECIFIED IN THE REQUEST FOR QUOTATIONS; THAT YOU WERE ADVISED BY THE PROCURING ACTIVITY THAT CHANTILLY'S OFFER WAS APPROXIMATELY $23,900 AND THAT CHANTILLY WOULD REFUND ANY UNUSED PORTION OF THE AWARD; AND THAT YOUR PRICE OF $22,575 COVERED GROUND SCHOOL FOR 50 STUDENTS ($3,825), 15 HOURS DUAL FLIGHT FOR 50 STUDENTS ($15,750), AND 4 HOURS SOLO FLIGHT FOR 50 STUDENTS ($3,000). YOU ALSO STATED THAT THE NAVY ARBITRARILY ADDED $2,520 TO YOUR OFFER FOR 315 HOURS OF PREFLIGHT AND POSTFLIGHT DISCUSSION AND THAT THIS CHARGE WAS NOT INCLUDED IN YOUR OFFER AND IS NOT CHARGED WHEN DUAL INSTRUCTION IS GIVEN BY YOUR FIRM. YOU CONTEND THAT YOUR FIRM WOULD HAVE PROVIDED ALL OF THE SERVICES REQUESTED IN THE REQUEST FOR QUOTATIONS AT A TOTAL PRICE LOWER THAN THE AMOUNT OF THE CONTRACT AWARD.

AN EXAMINATION OF YOUR OFFER DOES NOT REVEAL THAT YOU QUOTED A TOTAL PRICE OR THAT THE TOTAL PRICE WOULD BE $22,575 FOR THE REQUIRED SERVICES. RATHER, EXAMINATION OF THE OFFER SHOWS THAT YOU QUOTED SEPARATE UNIT PRICES FOR SOLO FLIGHT INSTRUCTION, DUAL FLIGHT INSTRUCTION, PREFLIGHT AND POST-FLIGHT DISCUSSION, AND CLASSROOM INSTRUCTION. THE CHARGE FOR PREFLIGHT AND POSTFLIGHT DISCUSSION WAS $8 PER HOUR. BASED ON AN ESTIMATE OF 6-1/3 HOURS OF PREFLIGHT AND POSTFLIGHT DISCUSSION PER STUDENT, IT WAS ESTIMATED THAT THE TOTAL PRICE FOR SUCH INSTRUCTION FOR 50 STUDENTS WOULD BE $2,520 AND THAT AMOUNT WAS INCLUDED IN THE EVALUATION OF YOUR TOTAL OFFER. SINCE THE PROCURING ACTIVITY REQUESTED A UNIT PRICE FOR PREFLIGHT AND POSTFLIGHT DISCUSSION AND YOU QUOTED A UNIT PRICE FOR SUCH DISCUSSION AND YOU DID NOT INDICATE IN THE OFFER THAT THE CHARGE WAS INCLUDED IN ANY OF THE OTHER ITEMS, IT WAS NOT ARBITRARY FOR THE PROCURING ACTIVITY TO CONSIDER IT IN ESTIMATING THE TOTAL PRICE OF THE OFFER.

BASED ON THE EVALUATION EMPLOYED ABOVE, YOUR TOTAL PRICE WAS ESTIMATED AT $30,845 WHEREAS CHANTILLY'S WAS ESTIMATED AT $25,350. HOWEVER, EVEN IF THE LOWEST UNIT PRICES YOU QUOTED FOR SOLO AND DUAL INSTRUCTION, RESPECTIVELY, WERE SUBSTITUTED FOR THE UNIT PRICES UTILIZED FOR SUCH INSTRUCTION IN THE EVALUATION OF YOUR OFFER AND THE LOWEST RESPECTIVE UNIT PRICES CHANTILLY OFFERED FOR THE SAME INSTRUCTION WERE SUBSTITUTED FOR THE UNIT PRICES UTILIZED IN THE EVALUATION OF ITS OFFER, CHANTILLY WOULD REMAIN THE LOWEST EVALUATED OFFEROR SINCE ON THAT BASIS ITS TOTAL ESTIMATED PRICE WOULD BE $22,730 WHEREAS YOURS WOULD BE $25,095.

ACCORDINGLY, IN VIEW OF THE FOREGOING, THE PROTEST IS DENIED.