B-181071, SEP 4, 1974

B-181071: Sep 4, 1974

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WHERE SOLE BID WAS 271 PERCENT HIGHER THAN ITEMS PROCURED UNDER PREVIOUS CONTRACTS. DSA100-74-B-1197 WAS ISSUED BY THE DEFENSE PERSONNEL SUPPORT CENTER (DPSC). WHICH WAS THE SOLE BIDDER OF EIGHT FIRMS SOLICITED. THE CONTRACTING OFFICER DETERMINED THAT ALCO'S PRICE WAS UNREASONABLY HIGH (271 PERCENT) AS COMPARED TO THE PRICE OBTAINED UNDER A PREVIOUS PROCUREMENT OF THE ITEM. THE PROCUREMENT WAS READVERTISED UNDER IFB DSA100-74-B-1398. BIDS WERE RECEIVED FROM CHAPPEL INDUSTRIES. AWARD WAS MADE TO CHAPPEL ON MAY 28. THE DISCLOSURE OF A BID PRICE FOLLOWED BY A CANCELLATION OF THE INVITATION AND A READVERTISMENT IS REGRETTABLE. "UNLESS THERE IS A COMPELLING REASON TO REJECT ALL BIDS AND CANCEL THE INVITATION.".

B-181071, SEP 4, 1974

WHERE SOLE BID WAS 271 PERCENT HIGHER THAN ITEMS PROCURED UNDER PREVIOUS CONTRACTS, CONTRACTING OFFICER PROPERLY EXERCISED HIS DISCRETION IN CANCELING IFB AND READVERTISING BASED ON UNREASONABLENESS OF SOLE BIDDER'S PRICE.

ALCO METAL STAMPING CORP.:

INVITATION FOR BIDS (IFB) NO. DSA100-74-B-1197 WAS ISSUED BY THE DEFENSE PERSONNEL SUPPORT CENTER (DPSC), PHILADELPHIA, PENNSYLVANIA, ON FEBRUARY 26, 1974, FOR A SUPPLY (6,000 EACH) OF BUCKLES, BELTS, MP CHROME.

ALCO METAL STAMPING CORP. (ALCO), WHICH WAS THE SOLE BIDDER OF EIGHT FIRMS SOLICITED, OFFERED A UNIT PRICE OF $1.485 AND A TOTAL PRICE OF $8,910. THE CONTRACTING OFFICER DETERMINED THAT ALCO'S PRICE WAS UNREASONABLY HIGH (271 PERCENT) AS COMPARED TO THE PRICE OBTAINED UNDER A PREVIOUS PROCUREMENT OF THE ITEM, AND CANCELED THE IFB PURSUANT TO ARMED SERVICES PROCUREMENT REGULATION (ASPR) 2-404.1(B)(VI).

THE PROCUREMENT WAS READVERTISED UNDER IFB DSA100-74-B-1398. ALCO DID NOT SUBMIT A NEW BID; BIDS WERE RECEIVED FROM CHAPPEL INDUSTRIES, INC. (CHAPPEL), AT $1.02 PER UNIT PRICE AND $6,120 TOTAL PRICE, AND NORTH AND JUDD, INC., AT $1.25 PER UNIT PRICE AND $7,500 TOTAL PRICE. AWARD WAS MADE TO CHAPPEL ON MAY 28, 1974.

ALCO PROTESTS THE CANCELLATION AND READVERTISEMENT OF THE IFB ON THE BASIS THAT THIS ACTION RESULTED IN AN AUCTION WHICH PLACED ALCO AT A COMPETITIVE DISADVANTAGE BECAUSE ITS BID PRICE HAD BEEN REVEALED TO ITS COMPETITORS WHO DID NOT SUBMIT BIDS UNDER THE FIRST IFB.

THE DISCLOSURE OF A BID PRICE FOLLOWED BY A CANCELLATION OF THE INVITATION AND A READVERTISMENT IS REGRETTABLE. ASPR 2-404.1(A) PROVIDES AWARD SHALL BE MADE TO THAT RESPONSIBLE BIDDER WHO SUBMITTED THE LOWEST RESPONSIVE BID, "UNLESS THERE IS A COMPELLING REASON TO REJECT ALL BIDS AND CANCEL THE INVITATION."

HOWEVER, UNDER 10 U.S.C. 2305(C), THE SOLICITATION INSTRUCTIONS AND CONDITIONS, AND ASPR 2-404.1, THE CONTRACTING OFFICER IS AUTHORIZED TO REJECT ALL BIDS IN THE PUBLIC INTEREST. THE CITED ASPR PROVIDES IN SUBPARAGRAPH (B)(IV) THAT A SOLICITATION MAY BE CANCELED IF OTHERWISE ACCEPTABLE BIDS ARE RECEIVED AT UNREASONABLE PRICES. CONSIDERING THE VARIATION BETWEEN THE BID PRICE AND THE PRIOR PRICE, WE CONCLUDE THAT THE CONTRACTING OFFICER WAS JUSTIFIED IN ACTING AS HE DID. THE PRICES RECEIVED ON RESOLICITATION TEND TO SUPPORT THAT CONCLUSION.

THEREFORE, THE PROTEST IS DENIED.