B-173001(1), SEP 30, 1971

B-173001(1): Sep 30, 1971

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SINCE THE AWARD TO ATCO APPEARS TO HAVE RESULTED FROM DEFICIENCIES IN THE CRAIG PROPOSAL AND NOT BECAUSE ATCO OFFERED DESIGN FEATURES BEYOND THOSE REQUIRED BY THE SPECIFICATIONS. THERE IS NO BASIS FOR DISTURBING THE AWARD. TO DICKERMAN AND GLAZERMAN: REFERENCE IS MADE TO YOUR LETTER OF JULY 21. TWO OF THE FOUR OFFERORS RESPONDING WERE REJECTED AFTER INITIAL EVALUATION AND THE REMAINING TWO OFFERORS. THE CRAIG PROPOSAL WAS DOWNGRADED BECAUSE OF TECHNICAL DEFICIENCIES. TELEPHONE CONVERSATIONS WERE HELD WITH CRAIG WITH A VIEW TO UPGRADING THE TECHNICAL ASPECTS OF ITS PROPOSAL. THE CRAIG PROPOSAL WAS UPGRADED IN SOME RESPECTS BUT SOME TECHNICAL DEFICIENCIES STILL EXISTED. WAS STILL SLIGHTLY LOWER THAN ATCO'S.

B-173001(1), SEP 30, 1971

BID PROTEST - TECHNICAL EVALUATION DENIAL OF PROTEST ON BEHALF OF CRAIG SYSTEMS CORPORATION, AGAINST THE AWARD OF A CONTRACT TO ATCO INDUSTRIES LTD., UNDER AN RFP ISSUED BY THE PATUXENT NAVAL AIR STATION. SINCE THE AWARD TO ATCO APPEARS TO HAVE RESULTED FROM DEFICIENCIES IN THE CRAIG PROPOSAL AND NOT BECAUSE ATCO OFFERED DESIGN FEATURES BEYOND THOSE REQUIRED BY THE SPECIFICATIONS, THERE IS NO BASIS FOR DISTURBING THE AWARD.

TO DICKERMAN AND GLAZERMAN:

REFERENCE IS MADE TO YOUR LETTER OF JULY 21, 1971, AND PRIOR CORRESPONDENCE, PROTESTING ON BEHALF OF CRAIG SYSTEMS CORPORATION AGAINST THE AWARD OF A CONTRACT TO ATCO INDUSTRIES LTD. UNDER REQUEST FOR PROPOSALS (RFP) NO. N00421-71-R-7743, ISSUED BY THE PATUXENT NAVAL AIR STATION.

THE RFP SOLICITED PROPOSALS FOR THE DEVELOPMENT OF A TACTICAL SUPPORT CENTER MODULAR SOFTSITE. TWO OF THE FOUR OFFERORS RESPONDING WERE REJECTED AFTER INITIAL EVALUATION AND THE REMAINING TWO OFFERORS, CRAIG AND ATCO, UNDERWENT FURTHER EVALUATION. THE ATCO PROPOSAL RECEIVED A HIGHER RATING FROM THE EVALUATION COMMITTEE THAN THE CRAIG PROPOSAL ALTHOUGH CRAIG OFFERED A LOWER PRICE. THE CRAIG PROPOSAL WAS DOWNGRADED BECAUSE OF TECHNICAL DEFICIENCIES.

SUBSEQUENTLY, ON APRIL 2 AND 6, 1971, TELEPHONE CONVERSATIONS WERE HELD WITH CRAIG WITH A VIEW TO UPGRADING THE TECHNICAL ASPECTS OF ITS PROPOSAL. AS A RESULT OF THESE CONVERSATIONS, THE CRAIG PROPOSAL WAS UPGRADED IN SOME RESPECTS BUT SOME TECHNICAL DEFICIENCIES STILL EXISTED. MOREOVER, WHILE CRAIG'S PRICE, AS INCREASED, WAS STILL SLIGHTLY LOWER THAN ATCO'S, THE ADMINISTRATIVE REPORT STATED THAT THE NAVY WOULD HAVE TO BEAR ADDITIONAL CHARGES FOR CRAIG'S PROPOSED USE OF CERTAIN GOVERNMENT TEST FACILITIES AT EGLIN AIR FORCE BASE. THESE CHARGES, WHEN ADDED TO CRAIG'S OFFERED PRICE, MADE THE CRAIG PROPOSAL SLIGHTLY MORE COSTLY TO THE GOVERNMENT THAN ATCO'S PROPOSAL WHICH DID NOT REQUIRE THE USE OF GOVERNMENT FACILITIES. IN VIEW OF THIS AND CRAIG'S TECHNICAL DEFICIENCIES, THE DECISION WAS MADE TO AWARD THE CONTRACT TO ATCO.

THE AWARD TO ATCO APPEARS TO HAVE RESULTED FROM DEFICIENCIES IN THE CRAIG PROPOSAL AND NOT BECAUSE ATCO HAD OFFERED DESIGN FEATURES BEYOND THOSE REQUIRED BY THE GOVERNMENT SPECIFICATIONS AS YOU CONTEND. HOWEVER, WE DO FIND THAT AWARD WAS BASED ON EVALUATION FACTORS WHICH WERE NOT DISCLOSED AS SUCH TO THE OFFERORS.

WE HAVE HELD THAT THE FAILURE TO ADVISE OFFERORS OF EVALUATION FACTORS AND THE RELATIVE IMPORTANCE TO BE ATTACHED TO EACH FACTOR CONSTITUTES A DEFICIENCY IN SOUND PROCUREMENT POLICY. 50 COMP. GEN. (B-170682, MARCH 19, 1971); 49 ID. 229 (1969). WE ARE BRINGING THIS MATTER TO THE ATTENTION OF THE SECRETARY OF THE NAVY BY LETTER OF TODAY, COPY ENCLOSED. HOWEVER, WE DO NOT BELIEVE THAT THE CIRCUMSTANCES OF THE INSTANT CASE OTHERWISE REQUIRE THE INTERVENTION OF OUR OFFICE. THIS IS BECAUSE THE REJECTION OF THE CRAIG PROPOSAL RESULTED AT LEAST IN PART FROM THE DEFICIENCIES IN THE TECHNICAL PROPOSAL AND THE RECORD SHOWS THAT CRAIG WAS PROVIDED WITH TWO OPPORTUNITIES TO CORRECT THE TECHNICAL DEFICIENCIES BUT YET THE PROPOSAL REMAINED TECHNICALLY INADEQUATE.

ACCORDINGLY, THE PROTEST IS DENIED.