B-173376, AUG 16, 1971

B-173376: Aug 16, 1971

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AS THE PROCUREMENT WAS NEGOTIATED. NOTIFICATION OF CANCELLATION OF THE SOLICITATION AND EXERCISE OF THE OPTION WAS ALL THAT WAS REQUIRED OF THE AGENCY UNDER ASPR 3-508.3. WHICH WAS THE BASIS OF THE PROTEST. WAS NOT REQUIRED. THE PROTEST IS DENIED. TO MILLAR AND FALLIN: FURTHER REFERENCE IS MADE TO YOUR PROTEST ON BEHALF OF JETS SERVICES. THE INSTANT SOLICITATION WAS ISSUED. PROSPECTIVE OFFERORS WERE ADVISED THAT THE EXISTING CONTRACT CONTAINED AN OPTION FOR RENEWAL AND THAT THE GOVERNMENT MIGHT NOT MAKE AN AWARD ON THE BASIS OF THE NEW SOLICITATION. AS IT WAS PERMITTED TO DO UNDER ITS CURRENT CONTRACT. WHICH WAS A LOWER PRICE ON ITS EXISTING OPTION THAN THAT OFFERED UNDER THE SOLICITATION.

B-173376, AUG 16, 1971

BID PROTEST - NEGOTIATED CONTRACT - FAILURE TO GIVE ABSTRACT OF BIDS DECISION DENYING PROTEST OF JETS SERVICES, INC., HIGHER BIDDER, AGAINST AWARD OF CONTRACT TO SPACE SERVICES OF GEORGIA, LOW BIDDER UNDER RFP ISSUED BY NAVAL REGIONAL PROCUREMENT OFFICE, PHILADELPHIA, PA. THE SOLICITATION WARNED OFFERORS THAT A CONTRACT EXISTED WITH SPACE SERVICES WHICH CONTAINED AN OPTION TO RENEW AND THAT THE SOLICITATION MIGHT BE CANCELLED IF EXERCISE OF THE OPTION SHOULD BE DETERMINED TO BE IN THE BEST INTEREST OF THE GOVERNMENT. AS THE PROCUREMENT WAS NEGOTIATED, NOTIFICATION OF CANCELLATION OF THE SOLICITATION AND EXERCISE OF THE OPTION WAS ALL THAT WAS REQUIRED OF THE AGENCY UNDER ASPR 3-508.3. THE FAILURE TO FURNISH AN ABSTRACT OF THE BIDS, WHICH WAS THE BASIS OF THE PROTEST, WAS NOT REQUIRED; THEREFORE, THE PROTEST IS DENIED.

TO MILLAR AND FALLIN:

FURTHER REFERENCE IS MADE TO YOUR PROTEST ON BEHALF OF JETS SERVICES, INC. (JETS), AGAINST THE AWARD OF A CONTRACT TO SPACE SERVICES OF GEORGIA (SPACE SERVICES) UNDER REQUEST FOR PROPOSAL (RFP) NO. N00140-71 R-1452, ISSUED ON APRIL 19, 1971, BY THE NAVAL REGIONAL PROCUREMENT OFFICE, PHILADELPHIA, PENNSYLVANIA (NRPOPP).

THE INSTANT SOLICITATION WAS ISSUED, PURSUANT TO THE PROVISIONS OF SECTION 1-1505 OF THE ARMED SERVICES PROCUREMENT REGULATION (ASPR), TO TEST THE MARKET FOR A COMPARISON OF PRICES OFFERED UNDER THE SOLICITATION WITH THAT OFFERED UNDER AN OPTION IN THE CURRENT CONTRACT HELD BY SPACE SERVICES FOR MESS ATTENDANT SERVICES AT THE U. S. NAVAL STATION, PHILADELPHIA, PENNSYLVANIA. ACCORDINGLY, PROSPECTIVE OFFERORS WERE ADVISED THAT THE EXISTING CONTRACT CONTAINED AN OPTION FOR RENEWAL AND THAT THE GOVERNMENT MIGHT NOT MAKE AN AWARD ON THE BASIS OF THE NEW SOLICITATION.

OF THE SEVEN OFFERS RECEIVED ON MAY 27, 1971, SPACE SERVICES SUBMITTED THE LOWEST OFFER AND JETS SUBMITTED THE HIGHEST. CONCURRENT WITH SUBMISSION OF ITS PROPOSAL, SPACE SERVICES SUBMITTED AN ADJUSTMENT IN ITS ORIGINAL CONTRACT PRICE, AS IT WAS PERMITTED TO DO UNDER ITS CURRENT CONTRACT, WHICH WAS A LOWER PRICE ON ITS EXISTING OPTION THAN THAT OFFERED UNDER THE SOLICITATION. THE NEGOTIATOR, USING THE GOVERNMENT'S ESTIMATE OF THE NUMBER OF MANNING HOURS CONSIDERED NECESSARY FOR SATISFACTORY PERFORMANCE (54,504 UNDER THE EXISTING CONTRACT) AND THE INCREASE IN THE HOURLY MINIMUM WAGE (.14), AS INDICATED IN THE MARCH 19, 1971 WAGE DETERMINATION, CONSIDERED THE OFFERED PRICE OF $190,329.36 UNDER THE OPTION AS FAIR AND REASONABLE. IT WAS THEREFORE, DETERMINED TO BE IN THE BEST INTEREST OF THE GOVERNMENT TO CANCEL THE SOLICITATION AND TO EXERCISE THE OPTION.

YOU COMPLAIN ON BEHALF OF JETS THAT YOU WERE NOT FURNISHED AN ABSTRACT SHOWING THE BIDDERS AND THE BID PRICES, AND THAT THE OFFERED PRICE OF SPACE SERVICES IS LESS THAN THAT REQUIRED TO MEET THE COSTS OF PAYING THE MINIMUM WAGES FOR THE NUMBER OF MAN HOURS REQUIRED UNDER THE SOLICITATION.

IT IS REPORTED THAT ALL OFFERORS WERE NOTIFIED OF THE EXERCISE OF THE OPTION AND CANCELLATION OF THE SOLICITATION, AS REQUIRED BY ASPR 3 508.3. THE INFORMATION REQUIRED TO BE FURNISHED UNDER THE CITED ASPR PARAGRAPH IS ALL THAT A PROSPECTIVE CONTRACTOR IS ENTITLED TO UNDER A NEGOTIATED PROCUREMENT, AND APPARENTLY YOUR CLIENT HAS BEEN SO INFORMED.

CONCERNING YOUR ARGUMENT THAT SPACE SERVICES' OFFER WILL NOT MEET THE MINIMUM WAGE REQUIREMENTS FOR THE NUMBER OF HOURS REQUIRED, WE HAVE VERIFIED THAT WAGE DETERMINATION NUMBERED 67-258 (REV. 5) ISSUED ON MARCH 19, 1971, FOR THE PHILADELPHIA AREA PROVIDED FOR BASIC WAGES OF $2.67 PER HOUR, PLUS .08 FOR HEALTH AND WELFARE, TOGETHER WITH VACATION AND HOLIDAY PAY. SPACE SERVICE'S OFFER UNDER THE OPTION AMOUNTS TO APPROXIMATELY $3.50 PER HOUR FOR THE 54,504 ESTIMATED HOURS REQUIRED FOR THE NEW CONTRACT PERIOD. CONSEQUENTLY, IT WOULD APPEAR THAT SPACE SERVICES HAS SUBMITTED AN ACCEPTABLE OFFER THAT WILL PERMIT IT TO PAY THE MINIMUM WAGES IN QUESTION, AND YOUR PROTEST ON BEHALF OF JETS MUST THEREFORE BE DENIED.