B-178684(2), MAR 21, 1974

B-178684(2): Mar 21, 1974

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PRECIS-UNAVAILABLE TO SECRETARY OF THE AIR FORCE: ENCLOSED IS A COPY OF OUR DECISION OF TODAY DENYING THE PROTEST OF FRONTIER BROADCASTING COMPANY D/B/A CABLE COLOR VISION. YOUR ATTENTION IS INVITED TO THAT PORTION OF THE DECISION WHEREIN IT IS POINTED OUT THAT THE EVALUATION CRITERIA STATED IN THE REQUEST FOR PROPOSALS (RFP). IT IS OUR POSITION THAT EACH MAJOR CRITERION IN THE EVALUATION PROCESS SHOULD BE STATED IN THE RFP AND ITS RELATIVE IMPORTANCE DENOMINATED. WE ALSO NOTICED THAT UNDER THE EVALUATION FORMULA AS STATED IN AFR 70-3 THE SUBMISSION OF SEVERELY UNBALANCED OFFERS IS PERMISSIBLE. ITEMS 5-7 ARE TOO SPECULATIVE AND DIFFICULT TO ADMINISTER TO BE INCLUDED IN THE COMPUTATION OF LOWEST OFFER.".

B-178684(2), MAR 21, 1974

PRECIS-UNAVAILABLE

TO SECRETARY OF THE AIR FORCE:

ENCLOSED IS A COPY OF OUR DECISION OF TODAY DENYING THE PROTEST OF FRONTIER BROADCASTING COMPANY D/B/A CABLE COLOR VISION, AGAINST THE AWARD OF THE CATV FRANCHISE AT WARREN AIR FORCE BASE, WYOMING.

YOUR ATTENTION IS INVITED TO THAT PORTION OF THE DECISION WHEREIN IT IS POINTED OUT THAT THE EVALUATION CRITERIA STATED IN THE REQUEST FOR PROPOSALS (RFP), WHICH REFLECTS THOSE REQUIRED BY AIR FORCE REGULATION (AFR) 70-3, DO NOT COMPORT WITH SOUND PROCUREMENT PRACTICES. IT IS OUR POSITION THAT EACH MAJOR CRITERION IN THE EVALUATION PROCESS SHOULD BE STATED IN THE RFP AND ITS RELATIVE IMPORTANCE DENOMINATED.

DURING THE COURSE OF OUR REVIEW, WE ALSO NOTICED THAT UNDER THE EVALUATION FORMULA AS STATED IN AFR 70-3 THE SUBMISSION OF SEVERELY UNBALANCED OFFERS IS PERMISSIBLE. ALTHOUGH CALLING FOR PRICING RESPONSES FOR ITEMS 5 AND 6 OF SCHEDULE "A," RECONNECTION AND RELOCATION FEES, THE AFR PROHIBITS THEIR CONSIDERATION IN THE EVALUATION FOR AWARD PROCESS BECAUSE "OWING TO THE UNCERTAINTY OF THE SUBSCRIBER TURNOVER, ITEMS 5-7 ARE TOO SPECULATIVE AND DIFFICULT TO ADMINISTER TO BE INCLUDED IN THE COMPUTATION OF LOWEST OFFER." WHILE GAO HAS REJECTED THE AIR FORCE ARGUMENT THAT THE RECONNECTION AND RELOCATION FEES ARE PERMISSIBLE EVALUATION CONSIDERATIONS UNDER THE AFR PLAN, WE BELIEVE THAT THEY SHOULD BE A PART OF THE DETERMINATION OF THE OFFER MOST ADVANTAGEOUS TO THE GOVERNMENT. IN THIS VEIN, WE NOTE THAT THE AVOWED PURPOSE OF THE AWARD OF A CATV FRANCHISE IS TO SECURE THE BEST QUALITY SERVICE AT THE LOWEST POSSIBLE PRICE FOR PROSPECTIVE SUBSCRIBERS. WHILE THE EXACT NUMBER OF RECONNECTIONS AND RELOCATIONS MAY BE DIFFICULT TO ESTIMATE, IT SEEMS CLEAR THAT THEY WILL OCCUR.

THEREFORE, WE RECOMMEND THAT THE AFR BE REVIEWED FOR THE PURPOSE OF INCLUDING THE RECONNECTION AND RELOCATION FEES IN THE EVALUATION PROCESS.

PLEASE ADVISE US OF WHATEVER ACTION IS TAKEN ON OUR RECOMMENDATION.