B-181835, DEC 5, 1974

B-181835: Dec 5, 1974

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ALL OFFERORS THAT SUBMITTED ACCEPTABLE TECHNICAL PROPOSALS UNDER STEP I WERE ISSUED STEP II. THE PROVISIONS IN STEP II WERE IN COMPLIANCE WITH ARMED SERVICES PROCUREMENT REGULATION (ASPR) SECS. 2-501 THROUGH 2 503.2 (1973 ED.). COMPETITORS WERE ADVISED IN STEP II THAT IT WAS ISSUED PURSUANT TO TWO-STEP FORMAL ADVERTISING IN PART 5 OF SECTION II OF ASPR. WHILE THE DEW BID WAS NEXT LOW AT $221. IT IS DEW'S POSITION THAT THE CONTRACTING OFFICER IS REQUIRED UNDER ASPR 2-407.1 TO CONSIDER OTHER FACTORS. IN DETERMINING WHICH BID WILL BE MOST ADVANTAGEOUS TO THE GOVERNMENT. WILL BE MOST ADVANTAGEOUS TO THE GOVERNMENT. ASSUMING THE BID IS RESPONSIVE AND THE BIDDER RESPONSIBLE. THE AGENCY WAS PRECLUDED UNDER THE APPLICABLE STATUTORY AND REGULATORY PROVISIONS FROM CONSIDERING UNDER STEP II RELATIVE QUALITY OF ACCEPTABLE STEP I PROPOSALS.

B-181835, DEC 5, 1974

RELATIVE QUALITY OF PROPOSALS SUBMITTED IN RESPONSE TO FIRST STEP OF TWO- STEP FORMALLY ADVERTISED PROCUREMENT MAY NOT BE CONSIDERED IN SECOND STEP SINCE ASPR SEC. 2-503.2 REQUIRES THAT STEP II BE CONDUCTED ON FORMAL ADVERTISING BASIS WITH AWARD TO LOWEST PRICED RESPONSIBLE BIDDER WHO SUBMITS RESPONSIVE BID.

D.E.W. INCORPORATED:

BY LETTER DATED JULY 9, 1974, D.E.W. INCORPORATED (DEW) PROTESTED THE AWARD OF A CONTRACT TO KENNEDY ASSOCIATES, INC. (KENNEDY), TO SUPPLY AN UNINTERRUPTABLE POWER SYSTEM PURSUANT TO THE REQUIREMENTS STATED IN TWO STEP FORMALLY ADVERTISED SOLICITATION F41699-74-B-0067, ISSUED AT KELLY AIR FORCE BASE, TEXAS.

ALL OFFERORS THAT SUBMITTED ACCEPTABLE TECHNICAL PROPOSALS UNDER STEP I WERE ISSUED STEP II. THE PROVISIONS IN STEP II WERE IN COMPLIANCE WITH ARMED SERVICES PROCUREMENT REGULATION (ASPR) SECS. 2-501 THROUGH 2 503.2 (1973 ED.). COMPETITORS WERE ADVISED IN STEP II THAT IT WAS ISSUED PURSUANT TO TWO-STEP FORMAL ADVERTISING IN PART 5 OF SECTION II OF ASPR, AS REQUIRED BY ASPR SEC. 2-503.2 (1973 ED).

KENNEDY SUBMITTED THE LOW BID OF $220,382, WHILE THE DEW BID WAS NEXT LOW AT $221,883. IT IS DEW'S POSITION THAT THE CONTRACTING OFFICER IS REQUIRED UNDER ASPR 2-407.1 TO CONSIDER OTHER FACTORS, AS WELL AS PRICE, IN DETERMINING WHICH BID WILL BE MOST ADVANTAGEOUS TO THE GOVERNMENT. ACCOMPLISH THIS, DEW CONTENDS THAT PRICE SHOULD BE CONSIDERED IN RELATION TO THE QUALITY OF THE PROPOSAL.

ASPR SEC. 2-503.2 (1973 ED.) REQUIRES THAT UPON THE COMPLETION OF STEP I, STEP II SHALL BE CONDUCTED AS A FORMALLY ADVERTISED PROCUREMENT TO ALL OFFERORS THAT SUBMITTED TECHNICALLY ACCEPTABLE PROPOSALS UNDER STEP I. DEW CORRECTLY NOTES THAT ASPR SEC. 2-407.1 (1973 ED.), CONCERNING FORMALLY ADVERTISED INVITATION FOR BIDS, STATES THAT AWARD SHALL BE MADE TO THE RESPONSIBLE BIDDER WHOSE BID, CONFORMING TO THE INVITATION, WILL BE MOST ADVANTAGEOUS TO THE GOVERNMENT, PRICE AND OTHER FACTORS CONSIDERED. THIS ASPR REFLECTS THE REQUIREMENT IN 10 U.S.C. 2305(C). OUR OFFICE HAS CONSISTENTLY INTERPRETED THIS LANGUAGE TO REQUIRE AWARD ON THE BASIS OF THE MOST FAVORABLE COST TO THE GOVERNMENT, ASSUMING THE BID IS RESPONSIVE AND THE BIDDER RESPONSIBLE. MATTER OF REQUEST OF DIRECTOR, SUPPLY SERVICE, VETERANS ADMINISTRATION FOR ADVANCE DECISION, B-180477, FEBRUARY 11, 1974; 47 COMP. GEN. 658 (1968). THEREFORE, THE AGENCY WAS PRECLUDED UNDER THE APPLICABLE STATUTORY AND REGULATORY PROVISIONS FROM CONSIDERING UNDER STEP II RELATIVE QUALITY OF ACCEPTABLE STEP I PROPOSALS.

THE PROTEST IS DENIED.