B-175973, AUG 4, 1972

B-175973: Aug 4, 1972

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THE ADMINISTRATIVE DISCRETION TO REJECT ALL OFFERS IS EXTREMELY BROAD. WHEN EXERCISED WILL NOT BE QUESTIONED BY GAO UNLESS ABUSED. NO SUCH ABUSE EXISTS IN THIS INSTANCE BECAUSE THE CANCELLATION OF THE ORIGINAL RFP WAS NECESSITATED BY THE FACT THAT ALL OFFERED PRICES WERE SUBSTANTIALLY IN EXCESS OF THE GOVERNMENT'S ESTIMATE AND FUNDING. TO TIDEWATER SHIP & YACHT YARD: REFERENCE IS MADE TO YOUR LETTER OF JULY 5. SIX OFFERS WERE RECEIVED IN RESPONSE TO RFP -3204 WHICH WAS TOTALLY RESTRICTED TO SMALL BUSINESS FIRMS. 876 WAS REJECTED WHEN IT BECAME KNOWN THAT THE OFFEROR WAS NOT A SMALL BUSINESS. 475.25 AND ALL REMAINING OFFERS WERE THEREAFTER REJECTED AS UNREASONABLE AS TO PRICE UPON THE ADVICE OF THE REQUIRING ACTIVITY THAT ITS ESTIMATE FOR THE WORK WAS APPROXIMATELY $60.

B-175973, AUG 4, 1972

BID PROTEST - CANCELLATION OF SOLICITATION DENIAL OF PROTEST BY TIDEWATER SHIP & YACHT YARD AGAINST THE CANCELLATION OF A SMALL BUSINESS SET ASIDE RFP AND A SUBSEQUENT RESOLICITATION OF THE REQUIREMENTS ON AN UNLIMITED BASIS BY THE NAVAL REGIONAL PROCUREMENT OFFICE, NEWPORT, R.I. THE ADMINISTRATIVE DISCRETION TO REJECT ALL OFFERS IS EXTREMELY BROAD, AND WHEN EXERCISED WILL NOT BE QUESTIONED BY GAO UNLESS ABUSED. B-168000, NOVEMBER 26, 1969. NO SUCH ABUSE EXISTS IN THIS INSTANCE BECAUSE THE CANCELLATION OF THE ORIGINAL RFP WAS NECESSITATED BY THE FACT THAT ALL OFFERED PRICES WERE SUBSTANTIALLY IN EXCESS OF THE GOVERNMENT'S ESTIMATE AND FUNDING.

TO TIDEWATER SHIP & YACHT YARD:

REFERENCE IS MADE TO YOUR LETTER OF JULY 5, 1972, AND PRIOR CORRESPONDENCE, PROTESTING THE CANCELLATION OF REQUEST FOR PROPOSALS (RFP) N00140-72-R-3204 AND THE SUBSEQUENT RESOLICITATION UNDER RFP N00140-72-R- 3332 ISSUED BY THE NAVAL REGIONAL PROCUREMENT OFFICE, NEWPORT, RHODE ISLAND.

SIX OFFERS WERE RECEIVED IN RESPONSE TO RFP -3204 WHICH WAS TOTALLY RESTRICTED TO SMALL BUSINESS FIRMS. THE LOWEST OFFER OF $53,876 WAS REJECTED WHEN IT BECAME KNOWN THAT THE OFFEROR WAS NOT A SMALL BUSINESS. TIDEWATER'S SECOND LOW OFFER OF $90,475.25 AND ALL REMAINING OFFERS WERE THEREAFTER REJECTED AS UNREASONABLE AS TO PRICE UPON THE ADVICE OF THE REQUIRING ACTIVITY THAT ITS ESTIMATE FOR THE WORK WAS APPROXIMATELY $60,000 AND THAT THE TIDEWATER OFFER WAS SUBSTANTIALLY IN EXCESS OF FUNDS AVAILABLE FOR THE WORK.

SUBSEQUENTLY, THE SERVICES REQUIRED WERE RESOLICITED ON AN UNRESTRICTED BASIS UNDER RFP -3332. WHILE RESOLUTION OF THE PROTEST WAS PENDING, AWARD WAS MADE UNDER THE AUTHORITY OF ARMED SERVICES PROCUREMENT REGULATION (ASPR) 2-407.8(B)(3) ON THE BASIS OF URGENCY TO THE LOW OFFEROR AT A PRICE OF $64,800. TIDEWATER AGAIN WAS THE SECOND LOW OFFEROR AT A PRICE OF $90,475.25.

PARAGRAPH 10(B) OF THE "SOLICITATION INSTRUCTIONS AND CONDITIONS" OF THE CANCELED RFP RESERVED TO THE GOVERNMENT THE RIGHT TO REJECT ANY AND ALL OFFERS. WE HAVE HELD THAT THE ADMINISTRATIVE DISCRETION TO REJECT ALL OFFERS IS EXTREMELY BROAD, AND WHEN EXERCISED WILL NOT BE QUESTIONED BY OUR OFFICE UNLESS SUCH DISCRETION HAS BEEN ABUSED. B 168000, NOVEMBER 26, 1969. NO SUCH ABUSE EXISTS IN THIS INSTANCE BECAUSE THE CANCELLATION OF RFP -3204 WAS NECESSARY SINCE ALL OFFERED PRICES WERE SUBSTANTIALLY IN EXCESS OF THE GOVERNMENT'S ESTIMATE AND FUNDING.

ACCORDINGLY, THE PROTEST IS DENIED.