B-175405, APR 25, 1972

B-175405: Apr 25, 1972

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

WHILE IT IS UNFORTUNATE THAT SEAMLOC'S SUPPLIERS HAVE BURDENED THE COMPANY WITH INCREASED COSTS. IT IS WELL SETTLED THAT AN INCREASED COST OF PERFORMANCE NEITHER EXCUSES NONPERFORMANCE NOR ENTITLES THE CONTRACTOR TO ADDITIONAL COMPENSATION. 45 COMP. FPNFH-C-28365-A-10-20-71 WAS ISSUED BY THE GENERAL SERVICES ADMINISTRATION (GSA) FOR A FEDERAL SUPPLY SCHEDULE CONTRACT FOR HOUSEHOLD FURNISHING. ALTHOUGH IT WAS EXPECTED THAT COMPETITIVE BIDDING WOULD BE OBTAINED ON THE PROCUREMENT. AT BID OPENING IT WAS FOUND THAT YOUR COMPANY HAD SUBMITTED THE ONLY BID. BECAUSE SEAMLOC'S PRICES WERE DETERMINED TO BE FAIR AND REASONABLE. GS-00S-09581 WAS AWARDED SEAMLOC UNDER THE INVITATION ON DECEMBER 1.

B-175405, APR 25, 1972

CONTRACTS - REQUESTED INCREASE IN CONTRACT PRICE DECISION DENYING A REQUEST OF SEAMLOC LOMA-LOOM CARPET CO., FOR AN INCREASE IN PRICE ON A CONTRACT AWARDED BY THE GENERAL SERVICES ADMINISTRATION. WHILE IT IS UNFORTUNATE THAT SEAMLOC'S SUPPLIERS HAVE BURDENED THE COMPANY WITH INCREASED COSTS, IT IS WELL SETTLED THAT AN INCREASED COST OF PERFORMANCE NEITHER EXCUSES NONPERFORMANCE NOR ENTITLES THE CONTRACTOR TO ADDITIONAL COMPENSATION. 45 COMP. GEN. 224, 227 (1965). ACCORDINGLY, THE REQUEST FOR RELIEF MUST BE DENIED.

TO SEAMLOC LOMA-LOOM CARPET CO.:

WE REFER TO YOUR LETTERS OF MARCH 7, 1972, REQUESTING THAT YOUR PRICES UNDER CONTRACTS NOS. GS-00S-09581 AND GS-00S-09869 BE INCREASED TO COMPENSATE YOU FOR COST INCREASES IMPOSED BY YOUR SUPPLIERS.

INVITATION FOR BIDS NO. FPNFH-C-28365-A-10-20-71 WAS ISSUED BY THE GENERAL SERVICES ADMINISTRATION (GSA) FOR A FEDERAL SUPPLY SCHEDULE CONTRACT FOR HOUSEHOLD FURNISHING, CLASS 7220, CARPETS AND RUGS, FOR THE PERIOD APRIL 1, 1972, THROUGH MARCH 31, 1973. ALTHOUGH IT WAS EXPECTED THAT COMPETITIVE BIDDING WOULD BE OBTAINED ON THE PROCUREMENT, AT BID OPENING IT WAS FOUND THAT YOUR COMPANY HAD SUBMITTED THE ONLY BID. BECAUSE SEAMLOC'S PRICES WERE DETERMINED TO BE FAIR AND REASONABLE, CONTRACT NO. GS-00S-09581 WAS AWARDED SEAMLOC UNDER THE INVITATION ON DECEMBER 1, 1971.

INVITATION FOR BIDS NO. FPNFH-C-28313-A-10-26-71 WAS ISSUED BY GSA FOR A FEDERAL SUPPLY SCHEDULE CONTRACT FOR HOUSEHOLD FURNISHINGS, CLASS 7220, FLOOR COVERINGS, CARPET AND CARPET CUSHION, FOR THE PERIOD MARCH 15, 1972, THROUGH MARCH 14, 1973. SEAMLOC WAS THE SOLE BIDDER ON ITEM 31-19 OF THE INVITATION. ITS PRICE BID WAS THE SAME AS THAT OF ITS PREVIOUS CONTRACT FOR THIS ITEM, WHICH HAD BEEN AWARDED TO SEAMLOC AS SOLE BIDDER. BECAUSE SEAMLOC'S BID PRICE ON ITEM 31-19 ALSO WAS DETERMINED TO BE REASONABLE, AWARD OF CONTRACT NO. GS-00S-09869 WAS MADE TO SEAMLOC UNDER THE INVITATION ON DECEMBER 14, 1971.

THE FACTS OF RECORD DO NOT ESTABLISH THAT A MISTAKE, AS SUCH, WAS MADE BY SEAMLOC IN COMPUTING ITS BID; RATHER IT APPEARS THAT SUBSEQUENT EVENTS UNFORESEEN AT AWARD NOW THREATEN TO MAKE THE CONTRACTS UNPROFITABLE. WHILE IT IS UNFORTUNATE THAT YOUR SUPPLIERS HAVE PUT YOUR COMPANY IN AN AWKWARD POSITION PRICE-WISE, WE ARE OBLIGED TO DENY YOUR REQUEST FOR RELIEF. AN UNEXPECTED OR INCREASED COST OF PERFORMANCE, WHETHER FORESEEN OR UNFORESEEN, IS A HAZARD WHICH MAY BE ENCOUNTERED DURING CONTRACT PERFORMANCE AND SUCH OCCURRENCE NEITHER EXCUSES NONPERFORMANCE NOR ENTITLES THE CONTRACTOR TO ADDITIONAL COMPENSATION. 45 COMP. GEN. 224, 227 (1965).

ACCORDINGLY, YOUR REQUEST FOR RELIEF IS DENIED.