B-175131, JUN 15, 1972

B-175131: Jun 15, 1972

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IT WAS PROPER FOR THE CONTRACTING OFFICER TO CANCEL THE SOLICITATION AND READVERTISE IN THE BEST INTERESTS OF THE GOVERNMENT. SINCE PEABODY WAS ALSO THE APPARENT LOW BIDDER ON THE SECOND IFB. TO BARENBAUM AND BARENBAUM: FURTHER REFERENCE IS MADE TO YOUR REPRESENTATION OF S. WAS ISSUED ON DECEMBER 28. INCLUDED A CERTIFICATION THAT THE BIDDER WAS A SMALL BUSINESS CONCERN. KANE WAS THE SECOND LOW BIDDER AT A PRICE OF $118. KANE PROTESTED AWARD TO PEABODY & WIND TO BOTH OUR OFFICE AND THE SMALL BUSINESS ADMINISTRATION ON THE GROUND THAT PEABODY & WIND WAS NOT A SMALL BUSINESS CONCERN WITHIN THE MEANING OF THE APPLICABLE CRITERIA. THE SBA SIZE APPEALS BOARD DETERMINED PEABODY & WIND WAS AN ELIGIBLE SMALL BUSINESS CONCERN UNDER THE TERMS OF THE SOLICITATION.

B-175131, JUN 15, 1972

BID PROTEST - PROPRIETY OF RESOLICITATION DECISION DENYING THE PROTEST OF S. KANE & SON, INC; AGAINST AWARD OF A CONTRACT TO PEABODY & WIND ENGINEERING CORPORATION UNDER AN IFB ISSUED BY THE ARMY ENGINEER DISTRICT, BALTIMORE, MD. IT WAS PROPER FOR THE CONTRACTING OFFICER TO CANCEL THE SOLICITATION AND READVERTISE IN THE BEST INTERESTS OF THE GOVERNMENT, AFTER PEABODY DENIED THE ARMY'S REQUEST FOR AN EXTENSION. SINCE PEABODY WAS ALSO THE APPARENT LOW BIDDER ON THE SECOND IFB, THERE EXISTS NO BASIS FOR OBJECTION TO THE AWARD.

TO BARENBAUM AND BARENBAUM:

FURTHER REFERENCE IS MADE TO YOUR REPRESENTATION OF S. KANE & SON, INCORPORATED, IN CONNECTION WITH ITS PROTEST AGAINST THE PROPOSED AWARD OF A CONTRACT TO THE APPARENT LOW BIDDER UNDER INVITATION FOR BIDS NO. DACA31 -72-B-0023, ISSUED BY THE UNITED STATES ARMY ENGINEER DISTRICT, BALTIMORE, MARYLAND.

THE SOLICITATION, A TOTAL SMALL BUSINESS SET-ASIDE, WAS ISSUED ON DECEMBER 28, 1971, FOR BIDS ON IMPROVING THE VENTILATION SYSTEM IN A BUILDING AT THE DEFENSE PERSONNEL SUPPORT CENTER IN PHILADELPHIA. THE LOW BID IN THE AMOUNT OF $102,464, SUBMITTED BY PEABODY & WIND ENGINEERING CORPORATION, INCLUDED A CERTIFICATION THAT THE BIDDER WAS A SMALL BUSINESS CONCERN. KANE WAS THE SECOND LOW BIDDER AT A PRICE OF $118,484, AND ALSO CERTIFIED ITSELF AS A SMALL BUSINESS CONCERN.

ON FEBRUARY 3, 1972, KANE PROTESTED AWARD TO PEABODY & WIND TO BOTH OUR OFFICE AND THE SMALL BUSINESS ADMINISTRATION ON THE GROUND THAT PEABODY & WIND WAS NOT A SMALL BUSINESS CONCERN WITHIN THE MEANING OF THE APPLICABLE CRITERIA. ON MARCH 31, 1972, THE SBA SIZE APPEALS BOARD DETERMINED PEABODY & WIND WAS AN ELIGIBLE SMALL BUSINESS CONCERN UNDER THE TERMS OF THE SOLICITATION. IN THE MEANTIME, HOWEVER, PEABODY & WIND'S BID HAD EXPIRED ON MARCH 27, 1972, AFTER IT DECLINED THE ARMY'S REQUEST FOR AN EXTENSION DUE TO AN ANTICIPATED INCREASE IN LABOR COSTS AS OF MAY 1, 1972, AND INCREASED COSTS OF EQUIPMENT.

SINCE PEABODY & WIND HAD BEEN DETERMINED TO BE AN ELIGIBLE SMALL BUSINESS CONCERN AND ITS BID WAS LOW BY $16,000, THE CONTRACTING OFFICER DETERMINED THAT IT WOULD BE IN THE GOVERNMENT'S INTEREST TO CANCEL THE SOLICITATION AND READVERTISE. THIS WAS DONE AND PEABODY & WIND ONCE AGAIN SUBMITTED THE LOW BID OF $108,089; KANE SUBMITTED A BID OF $116,444. AWARD WAS MADE TO PEABODY & WIND ON MAY 3, 1972.

IN THESE CIRCUMSTANCES, WE SEE NO BASIS FOR OUR OFFICE TO TAKE EXCEPTION TO THE ADMINISTRATIVE ACTION. ACCORDINGLY, KANE'S PROTEST IS DENIED.