B-181785, APR 24, 1975

B-181785: Apr 24, 1975

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PARTICULARLY IN LIGHT OF NAVY'S CURRENT POSITION THAT AS A RESULT OF ITS EXPERIENCE UNDER ITS NEGOTIATION PROCEDURES FOR MESS ATTENDANT SERVICES ALL FUTURE CONTRACTS OF THIS TYPE WILL BE FORMALLY ADVERTISED. ALL THE OFFERORS WERE CONSIDERED TO BE IN COMPETITIVE RANGE. AWARD WAS MADE TO THE LOW OFFEROR. DYNETERIA CONTENDS THAT ALL OFFERS WERE NOT EVALUATED ON AN EQUAL BASIS BY THE CONTRACTING OFFICER. THE PROBLEMS ASSOCIATED WITH THE MANNER IN WHICH FOOD SERVICE CONTRACTS HAVE BEEN NEGOTIATED HAVE BECOME MANIFEST IN RECENT YEARS. THAT FUTURE MESS ATTENDANT SERVICE CONTRACTS WILL BE AWARDED ON A FORMALLY ADVERTISED BASIS. IT IS OUR VIEW. THAT OPTIONS IN EXISTING CONTRACTS WHICH WERE REACHED UNDER IMPROPER NEGOTIATION PROCEDURES SHOULD NOT BE EXERCISED.

B-181785, APR 24, 1975

PARTICULARLY IN LIGHT OF NAVY'S CURRENT POSITION THAT AS A RESULT OF ITS EXPERIENCE UNDER ITS NEGOTIATION PROCEDURES FOR MESS ATTENDANT SERVICES ALL FUTURE CONTRACTS OF THIS TYPE WILL BE FORMALLY ADVERTISED, OPTIONS IN EXISTING CONTRACT ENTERED INTO UNDER IMPROPER NEGOTIATION PROCEDURES SHOULD NOT BE EXERCISED. FURTHERMORE, SINCE SPECIFIC CONTRACT IN QUESTION HAS SUBSTANTIALLY RUN ITS INITIAL 1-YEAR BASE PERIOD, LITTLE USEFUL PURPOSE IN TERMS OF REMEDY WOULD BE SERVED THROUGH FURTHER CONSIDERATION OF PROTEST.

DYNETERIA, INC.:

DYNETERIA, INC. (DYNETERIA) PROTESTS THE AWARD OF A CONTRACT UNDER REQUEST FOR PROPOSALS (RFP) N00140-74-R-0767, WHICH CALLED FOR THE PERFORMANCE OF MESS ATTENDANT SERVICES AT THE NAVAL STATION, ARGENTIA, NEWFOUNDLAND, CANADA, FOR THE PERIOD FROM JULY 1, 1974 TO JUNE 30, 1975. THE RFP, ISSUED BY THE NAVAL REGIONAL PROCUREMENT OFFICE, PHILADELPHIA, PENNSYLVANIA, RESULTED IN THREE PROPOSALS BEING RECEIVED BY JUNE 19, 1974, THE AMENDED DATE SPECIFIED FOR RECEIPT OF OFFERS. ALL THE OFFERORS WERE CONSIDERED TO BE IN COMPETITIVE RANGE. AWARD WAS MADE TO THE LOW OFFEROR, JET SERVICES, INC. (JET SERVICES), AT A PRICE OF $127,870.36.

DYNETERIA CONTENDS THAT ALL OFFERS WERE NOT EVALUATED ON AN EQUAL BASIS BY THE CONTRACTING OFFICER. IT ALLEGES THAT JET SERVICES' PROPOSAL AND THE EVALUATION CRITERIA SET FORTH IN THE RFP DID NOT CONFORM TO THE LOCAL STANDARDS REQUIRED FOR PERFORMING A CONTRACT IN CANADA. DYNETERIA ALSO MAINTAINS THAT JET SERVICES' FAILURE TO MAKE A SITE VISIT RESULTED IN THAT FIRM'S SUBMITTING A LOW BID WITHOUT ANY KNOWLEDGE OF THE ACTUAL CONDITIONS REQUIRED FOR AN OFFER TO BE IN COMPLIANCE WITH CANADIAN LAWS, AS WELL AS THE LOCAL CANADIAN UNION CONTRACT TERMS IN EFFECT AT ARGENTIA. THEREFORE, DYNETERIA ALLEGES THAT JET SERVICES' OFFER DID NOT SUPPORT ITS PROPOSED MANNING WHEN PROPERLY EVALUATED IN ACCORDANCE WITH THE RFP'S REQUIREMENTS.

THE PROBLEMS ASSOCIATED WITH THE MANNER IN WHICH FOOD SERVICE CONTRACTS HAVE BEEN NEGOTIATED HAVE BECOME MANIFEST IN RECENT YEARS. THESE PROBLEMS RESULTED IN NUMEROUS PROTESTS BY COMPETING FIRMS, WHICH IN THE AGGREGATE DEMONSTRATE THE DIFFICULTIES INHERENT IN THE STRUCTURE FOR EVALUATING PROPOSALS. SEE MATTER OF IRA GELBER FOOD SERVICE, INC.; T AND S SERVICE ASSOCIATES, INC., B-181663, MARCH 28, 1975, 54 COMP. GEN. .

THE NAVY HAS AGREED, AS A RESULT OF ITS EXPERIENCE UNDER ITS NEGOTIATION PROCEDURES FOR THESE CONTRACTS, THAT FUTURE MESS ATTENDANT SERVICE CONTRACTS WILL BE AWARDED ON A FORMALLY ADVERTISED BASIS. IT IS OUR VIEW, PARTICULARLY IN LIGHT OF THE NAVY'S CURRENT POSITION, THAT OPTIONS IN EXISTING CONTRACTS WHICH WERE REACHED UNDER IMPROPER NEGOTIATION PROCEDURES SHOULD NOT BE EXERCISED. SEE MATTER OF IRA GELBER FOOD SERVICE, INC., ET AL, SUPRA. EXERCISE OF THOSE OPTIONS WOULD UNNECESSARILY EXTEND THE EFFECT OF THE QUESTIONABLE PROCEDURES.

FURTHERMORE, BECAUSE THE SPECIFIC FOOD SERVICE CONTRACT PRESENTLY AT ISSUE HAS SUBSTANTIALLY RUN ITS INITIAL 1-YEAR BASE PERIOD, LITTLE USEFUL PURPOSE IN TERMS OF REMEDY WOULD BE SERVED THROUGH FURTHER CONSIDERATION OF THE PROTEST.