Protest Against Agency's Decision To Reevaluate Bids

B-194514.3: Jan 7, 1980

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An invitation for bids (IFB) issued by the Defense Logistics Agency (DLA) solicited bids for estimated amounts of coal to be delivered at various military installations located within the United States. A firm contended that DLA did not properly evaluate the bids because it did not use the correct freight rates when determining the low bid. The protester requested DLA to reevaluate two bids on the variance in the freight transportation rates. The railroads indicated that the proper freight rate per net ton for the awardee was not $11.97 as used by DLA but $12.28. Further, the protester argued that the proper freight rate for the evaluation of its bid was not the $13.03 per net ton used by DLA but rather $12.61. DLA reevaluated the two bids to verify the rate charges and informed the protester that it was now the low bidder. DLA notified the awardee and requested agreement at a cancellation of its contract for those two items at no cost to the Government. However, the awardee protested the proposed cancellation arguing that the protester's freight rate was also increasing in 30 days. After reevaluating the bids a second time, DLA concluded that the awardee was in fact the low bidder and that its contract should be allowed to stand. No legal basis was found to the objection to the final evaluation of bids or contract award made by DLA. The protest was denied.

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