B-182157, APR 22, 1975

B-182157: Apr 22, 1975

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PARTICULARLY IN LIGHT OF NAVY'S CURRENT POSITION THAT AS A RESULT OF ITS EXPERIENCE UNDER ITS NEGOTIATION PROCEDURE FOR MESS ATTENDANT SERVICES ALL FUTURE CONTRACTS OF THIS TYPE WILL BE FORMALLY ADVERTISED. N00204-74-R-0069 WAS ISSUED ON MAY 7. THE PERIOD OF THE PROPOSED CONTRACT WAS INITIALLY JULY 1. ABC WAS NOTIFIED BY TELEGRAM THAT SPACE SERVICES OF GEORGIA (SPACE SERVICES) WAS THE APPARENT SUCCESSFUL OFFEROR. AWARD WAS MADE TO SPACE SERVICES ON AUGUST 30. ABC'S PROTEST TO OUR OFFICE WAS FILED ON SEPTEMBER 4. RESPONSIBLE BID SHOULD NOT HAVE BEEN REJECTED SOLELY ON THE BASIS THAT ITS MANHOURS WERE LESS THAN THE GOVERNMENT'S ESTIMATE. (2) THAT THE PER MEAL VOLUME VARIATION PRICE SUBMITTED BY SPACE SERVICES CANNOT BE SUPPORTED BY FACT AND IS TOTALLY UNREALISTIC.

B-182157, APR 22, 1975

PARTICULARLY IN LIGHT OF NAVY'S CURRENT POSITION THAT AS A RESULT OF ITS EXPERIENCE UNDER ITS NEGOTIATION PROCEDURE 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.

ABC FOOD SERVICE, INC.:

REQUEST FOR PROPOSALS (RFP) NO. N00204-74-R-0069 WAS ISSUED ON MAY 7, 1974, SEEKING OFFERS TO PERFORM MESS ATTENDANT SERVICES AT THE NAVAL AIR STATION, PENSACOLA, FLORIDA. THE PERIOD OF THE PROPOSED CONTRACT WAS INITIALLY JULY 1, 1974, TO JUNE 30, 1975, BUT LATER REVISED TO SEPTEMBER 1 THROUGH JUNE 30. ON AUGUST 23, 1974, ABC WAS NOTIFIED BY TELEGRAM THAT SPACE SERVICES OF GEORGIA (SPACE SERVICES) WAS THE APPARENT SUCCESSFUL OFFEROR. AWARD WAS MADE TO SPACE SERVICES ON AUGUST 30, 1974. ABC'S PROTEST TO OUR OFFICE WAS FILED ON SEPTEMBER 4, 1974.

ABC PROTESTS THAT (1) ITS LOW RESPONSIVE, RESPONSIBLE BID SHOULD NOT HAVE BEEN REJECTED SOLELY ON THE BASIS THAT ITS MANHOURS WERE LESS THAN THE GOVERNMENT'S ESTIMATE; (2) THAT THE PER MEAL VOLUME VARIATION PRICE SUBMITTED BY SPACE SERVICES CANNOT BE SUPPORTED BY FACT AND IS TOTALLY UNREALISTIC; AND (3) SPACE SERVICES HAS ALLEGEDLY FALSIFIED ITS WORKMEN'S COMPENSATION AND UNEMPLOYMENT RATES IN ORDER TO JUSTIFY A LOWER COST PER HOUR.

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.