B-195044, B-195510(2), APR 21, 1980

B-195044,B-195510(2): Apr 21, 1980

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THE REQUIREMENT WAS ORIGINALLY ADVERTISED IN LATE 1978. SINCE THE GOVERNMENT ESTIMATE WAS ONLY $306. THE SOLICITATION WAS CANCELED WITHOUT AWARD BECAUSE OF THE "UNREASONABLE" BID PRICES. THE REQUIREMENT WAS SUBSEQUENTLY READVERTISED WITH AN INCREASED ESTIMATE OF $473. WAS AGAIN CANCELED AFTER IT WAS DETERMINED THAT THE $619. 000 BID FROM ARLANDRIA (THE ONLY ONE RECEIVED) WAS "UNREASONABLE" AS COMPARED TO THE GOVERNMENT ESTIMATE. THE REQUIREMENT WAS READVERTISED A THIRD TIME WITHOUT A REVISION TO THE GOVERNMENT ESTIMATE. THE THIRD SOLICITATION WAS CANCELED FOR THE SAME REASONS. THE GOVERNMENT ESTIMATE WAS REVIEWED AGAIN. FOUND TO BE IN ERROR AND WAS INCREASED TO $808. AWARD WAS MADE TO BEIRO FOR $800.

B-195044, B-195510(2), APR 21, 1980

PRECIS-UNAVAILABLE

CLIFFORD L. ALEXANDER, JR.; SECRETARY OF THE ARMY:

WE ENCLOSE A COPY OF OUR DECISION OF TODAY DENYING THE PROTEST OF ARLANDRIA CONSTRUCTION COMPANY CONCERNING THE AWARD OF A CONTRACT TO A.A. BEIRO CONSTRUCTION COMPANY UNDER INVITATION FOR BIDS (IFB) NO. DAHC30-79-B -0050, ISSUED BY THE U. S. ARMY MILITARY DISTRICT OF WASHINGTON FOR THE WATERPROOFING OF TWO BUILDINGS AND THE REPAIR OF THE STORM SEWER SYSTEM AT FT. MEYER, VIRGINIA.

THE REQUIREMENT WAS ORIGINALLY ADVERTISED IN LATE 1978, WITH BIDS RECEIVED FROM ARLANDRIA AND BEIRO IN THE AMOUNT OF $623,000 AND $688,000, RESPECTIVELY. SINCE THE GOVERNMENT ESTIMATE WAS ONLY $306,495, THE SOLICITATION WAS CANCELED WITHOUT AWARD BECAUSE OF THE "UNREASONABLE" BID PRICES. THE REQUIREMENT WAS SUBSEQUENTLY READVERTISED WITH AN INCREASED ESTIMATE OF $473,633, BUT WAS AGAIN CANCELED AFTER IT WAS DETERMINED THAT THE $619,000 BID FROM ARLANDRIA (THE ONLY ONE RECEIVED) WAS "UNREASONABLE" AS COMPARED TO THE GOVERNMENT ESTIMATE. THE REQUIREMENT WAS READVERTISED A THIRD TIME WITHOUT A REVISION TO THE GOVERNMENT ESTIMATE, AND AGAIN ONLY ARLANDRIA SUBMITTED A BID ($622,000). THE THIRD SOLICITATION WAS CANCELED FOR THE SAME REASONS.

THE ARMY THEREAFTER SOUGHT TO NEGOTIATE A CONTRACT WITH THE SMALL BUSINESS ADMINISTRATION PURSUANT TO THAT AGENCY'S MINORITY SET-ASIDE PROGRAM BUT TERMINATED THAT PROCEDURE WHEN IT BECAME APPARENT THAT A CONTRACT COULD NOT BE NEGOTIATED FOR LESS THAN $850,000. THE ARMY THEN READVERTISED THE REQUIREMENT FOR A FOURTH TIME WITH A REVISED ESTIMATE OF $571,890. BEIRO SUBMITTED THE LOW BID OF $800,000, AND ARLANDRIA THE THIRD LOWEST AT $914,500. THE GOVERNMENT ESTIMATE WAS REVIEWED AGAIN, FOUND TO BE IN ERROR AND WAS INCREASED TO $808,041. AWARD WAS MADE TO BEIRO FOR $800,000.

WE BELIEVE IT IS CLEAR THAT THE ARMY'S APPARENT INABILITY TO ARRIVE AT A REASONABLY ACCURATE CONSTRUCTION ESTIMATE RESULTED IN A NEEDLESS EXPENDITURE OF APPROXIMATELY $180,000 AND HIGHLIGHTS THE NEED FOR IMPROVED ESTIMATING PROCEDURES. WE BRING THIS MATTER TO YOUR ATTENTION SO THAT APPROPRIATE ACTION CAN BE TAKEN.