B-169912, SEP. 2, 1970

B-169912: Sep 2, 1970

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THE INDIVIDUAL ITEMS LISTED IN THE SCHEDULE WERE DIVIDED INTO LOTS A THROUGH G. DIVISION WAS THE LOW BIDDER ON SEVERAL OF THE LOTS. WE CONCLUDED IN OUR DECISION THAT THIS ACTION WAS NOT IMPROPER. IT IS YOUR CONTENTION THAT THIS ADMINISTRATIVE ACTION IS CONTRARY TO THE BIDDING STATUTES BECAUSE A CONTRACTING OFFICER BY THE CANCELLATION OF ONLY ONE LOT UNDER A MULTIPLE AWARDS TYPE SOLICITATION CAN SELECT HIS CONTRACTOR REGARDLESS OF PRICE. IT IS THAT WHENEVER THE GOVERNMENT CONSOLIDATES REQUIREMENTS FOR SEPARABLE ITEMS IN ONE INVITATION FOR BIDS AND DISCOVERS AFTER BID OPENING THAT IT NO LONGER NEEDS ONE OR MORE OF THE ITEMS.

B-169912, SEP. 2, 1970

BID PROTEST AFFIRMATION OF DECISION OF JULY 21, 1970, DENYING PROTEST AGAINST CANCELLATION OF BIDS UNDER A MULTIPLE TYPE AWARD.

TO MR. JAMES F. GARDNER:

THIS REFERS TO YOUR LETTER OF AUGUST 14, 1970, REQUESTING RECONSIDERATION OF OUR DECISION OF JULY 21, 1970, B-169912.

IN THAT DECISION WE DENIED YOUR PROTEST ON BEHALF OF DIVISION LAUNDRY AND CLEANERS, INCORPORATED, AGAINST CERTAIN CONTEMPLATED AWARDS UNDER INVITATION FOR BIDS NO. F41615-70-B-0895, ISSUED AT LACKLAND AIR FORCE BASE, TEXAS. THE PROCUREMENT CALLED FOR LAUNDRY AND DRY CLEANING SERVICES AT THE BASE MEDICAL CENTER, AND THE INDIVIDUAL ITEMS LISTED IN THE SCHEDULE WERE DIVIDED INTO LOTS A THROUGH G, ACCORDING TO THE TYPES OF GARMENTS, LINENS, AND PROCESSING REQUIRED. THE INVITATION PROVIDED THAT THE GOVERNMENT RESERVED THE RIGHT TO MAKE AWARD TO THE LOWEST BIDDER ON EACH LOT. DIVISION WAS THE LOW BIDDER ON SEVERAL OF THE LOTS, INCLUDING LOT E, DIAPER SERVICE PIECE WORK. AFTER BID OPENING, HOWEVER, THE CONTRACTING OFFICER CANCELLED LOT E ON THE BASIS THAT IT WOULD BE LESS EXPENSIVE TO USE DISPOSABLE DIAPERS THAN TO PROCEED WITH THE AWARD ON THIS LOT. WE CONCLUDED IN OUR DECISION THAT THIS ACTION WAS NOT IMPROPER.

IT IS YOUR CONTENTION THAT THIS ADMINISTRATIVE ACTION IS CONTRARY TO THE BIDDING STATUTES BECAUSE A CONTRACTING OFFICER BY THE CANCELLATION OF ONLY ONE LOT UNDER A MULTIPLE AWARDS TYPE SOLICITATION CAN SELECT HIS CONTRACTOR REGARDLESS OF PRICE, THUS THWARTING THE COMPETITIVE BID SYSTEM. IF WE UNDERSTAND YOUR POSITION CORRECTLY, IT IS THAT WHENEVER THE GOVERNMENT CONSOLIDATES REQUIREMENTS FOR SEPARABLE ITEMS IN ONE INVITATION FOR BIDS AND DISCOVERS AFTER BID OPENING THAT IT NO LONGER NEEDS ONE OR MORE OF THE ITEMS, AS HAPPENED HERE IN THE CASE OF LOT E, ALL BIDS ON ALL ITEMS MUST BE REJECTED AND NEW BIDS SOLICITED FOR THE ITEMS STILL NEEDED. WE FIND NOTHING IN THE LANGUAGE OF THE APPLICABLE PROCUREMENT STATUTES WHICH SUPPORTS SUCH A CONCLUSION.

ACCORDINGLY, WE AFFIRM OUR PRIOR DECISION DENYING YOUR PROTEST.

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