B-165018, SEPT. 19, 1968

B-165018, SEPT. 19, 1968

TO MR. SECRETARY:

ENCLOSED IS A COPY OF OUR DECISION OF TODAY TO UNIDYNAMICS DIVISION OF UMC INDUSTRIES, INC., DENYING THAT FIRM'S PROTEST AGAINST ANY AWARD OF A CONTRACT FOR LAUNCHING GROUPS (ANTI-SUBMARINE ROCKETS) UNDER IFB NO. N00017-68-B-1104. THIS MATTER WAS THE SUBJECT OF A REPORT DATED AUGUST 12, 1968, FROM THE EXECUTIVE DIRECTOR, CONTRACTS OFFICE, NAVAL ORDNANCE SYSTEMS COMMAND.

WE BELIEVE THIS CASE RAISES A QUESTION AS TO WHETHER IT CAN BE CONSIDERED IN THE INTEREST OF THE GOVERNMENT TO PROHIBIT THE OFFERING OF PRICES FOR LESS THAN THE TOTAL QUANTITY OF AN ITEM, AND TO REJECT ANY BID CONTAINING SUCH AN OFFER AS NONRESPONSIVE, SINCE SUCH A PROVISION MAY TEND TO LEAD CAUTIOUS BIDDERS TO INSERT ALL-OR-NONE QUALIFICATIONS IN THEIR BIDS, AND THUS DEPRIVE THE GOVERNMENT OF ALL OPPORTUNITY TO MAKE A DESIRABLE AWARD FOR A LESSER QUANTITY IN THE EVENT OF A CHANGE OF REQUIREMENTS, SUCH AS OCCURRED IN THE INSTANT CASE.

IF, AS INDICATED BY YOUR DEPARTMENT'S REPORT TO THIS OFFICE, THE PURPOSE OF PARAGRAPH (1) B IN THE SUBJECT SOLICITATION WAS MERELY TO INSURE AGAINST THE MAKING OF MULTIPLE AWARDS, WE BELIEVE THAT PURPOSE COULD BE MORE PROPERLY ACCOMPLISHED BY INSERTING A PROVISION INTO THE SCHEDULE THAT ONLY ONE CONTRACT WOULD BE AWARDED FOR THE ARTICLES TO BE PROCURED. THEREFORE SUGGEST THAT CONSIDERATION BE GIVEN TO THIS, OR OTHER APPROPRIATE, REVISION OF PARAGRAPH (1) B OF THE SUPPLEMENTAL SOLICITATION INSTRUCTIONS AND CONDITIONS IN FUTURE PROCUREMENTS. SINCE ANY SUCH REVISION WOULD OPERATE TO CHANGE THE EFFECT OF S.F. 33A IT SHOULD, OF COURSE, BE SUPPORTED BY A DETERMINATION THAT MULTIPLE AWARDS WOULD, FOR STATED REASONS, BE CONTRARY TO THE BEST INTEREST OF THE GOVERNMENT.