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B-157055, SEP. 2, 1965

B-157055 Sep 02, 1965
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INC.: REFERENCE IS MADE TO YOUR LETTER OF JULY 9. OF THE 13 FIRMS TO WHICH COPIES OF THE IFB WERE SENT. THE STANDING OF THE BIDDERS IS AS FOLLOWS: TABLE NAME BID AMOUNT FREQUENCY ENGINEERING LABORATORIES. YOU ARE THE LOWEST QUALIFIED BIDDER UNDER THE IFB. IN WHICH FREQUENCY ENGINEERING IS LOCATED. THAT ADEQUATE EXPLANATIONS WERE FURNISHED FOR ITS DELINQUENCIES ON FIVE OF ITS CURRENT CONTRACTS. ALL OF WHICH WERE SCHEDULED FOR COMPLETION BY JULY 31. THAT DELIVERIES UNDER THE SIXTH DELINQUENT CONTRACT WILL HAVE VIRTUALLY NO EFFECT ON FALT PRODUCTION. IT WAS FURTHER REPORTED THAT FEL'S INITIAL MODEL OF THE FALT UNDER ITS CURRENT CONTRACT HAD BEEN COMPLETED AND DEBUGGED AND HAD DEMONSTRATED SATISFACTORY PERFORMANCE AND THAT A REVISED PRODUCTION SCHEDULE INDICATED THAT DELIVERIES WOULD BE COMPLETED PRIOR TO THE REQUIRED DELIVERY DATES UNDER THE PRESENT IFB.

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B-157055, SEP. 2, 1965

TO CALIFORNIA COMPUTER PRODUCTS, INC.:

REFERENCE IS MADE TO YOUR LETTER OF JULY 9, 1965, ADDRESSED TO THE COMMANDING OFFICER, FRANKFORD ARSENAL, PHILADELPHIA, PENNSYLVANIA, PROTESTING AWARD OF A CONTRACT TO ANY OTHER BIDDER UNDER INVITATION FOR BIDS NO. AMC/A/-36-038-65-1033 WEI.

THE IFB, ISSUED ON MAY 3, 1965, BY FRANKFORD ARSENAL, SOLICITED BIDS, ON A TOTAL SMALL BUSINESS SET-ASIDE BASIS, TO FURNISH A QUANTITY OF COMPUTER LOGIC TEST SET UNITS (FALT), FOR DELIVERY COMMENCING IN APRIL 1966 AND TERMINATING IN JULY 1966, AND A QUANTITY OF PULSE GENERATORS, FOR DELIVERY COMMENCING IN NOVEMBER 1965 AND TERMINATING IN MAY 1966. OF THE 13 FIRMS TO WHICH COPIES OF THE IFB WERE SENT, 5 SUBMITTED RESPONSIVE BIDS. THE STANDING OF THE BIDDERS IS AS FOLLOWS:

TABLE

NAME BID AMOUNT FREQUENCY ENGINEERING LABORATORIES, INC. $ 677,950.01 TECHNICAL SUPPORT COMPANY

765,037.38 RODALE ELECTRONICS, INC. 789,238.84 CALIFORNIA COMPUTER PRODUCTS, INC. 1,108,627.06 CHRISTIAN PRECISION MFG. O., INC. 1,444,934.80

YOU CONTEND THAT NONE OF THE THREE LOWER BIDDERS HAS THE CAPABILITIES OR THE TECHNICAL KNOWLEDGE TO FABRICATE THE FALT. IN ADDITION, YOU STATE THAT YOU DO NOT BELIEVE THAT THE DELINQUENT PERFORMANCE OF FREQUENCY ENGINEERING, THE LOWEST BIDDER, QUALIFIES IT TO RECEIVE ADDITIONAL ORDERS FOR FALT EQUIPMENT. ACCORDINGLY, YOU STATE, YOU ARE THE LOWEST QUALIFIED BIDDER UNDER THE IFB.

THE RECORD BEFORE OUR OFFICE SHOWS THAT QUALITY ASSURANCE AND ENGINEERING PERSONNEL OF THE NEW YORK PROCUREMENT DISTRICT (NYPD), IN WHICH FREQUENCY ENGINEERING IS LOCATED, ASSISTED BY A REPRESENTATIVE FROM FRANKFORD ARSENAL, CONDUCTED A PREAWARD SURVEY OF THE FACILITIES AND CAPABILITIES OF THE LOW BIDDER, FREQUENCY ENGINEERING LABORATORIES, GIVING CONSIDERATION TO THE BIDDER'S PERFORMANCE, BOTH PAST AND CURRENT, ON OTHER GOVERNMENT CONTRACTS.

THE REPORTS FURNISHED TO THE CONTRACTING OFFICER BY BOTH NYPD AND THE ARSENAL'S REPRESENTATIVE STATE THE CONCLUSION THAT FREQUENCY ENGINEERING HAS ALL OF THE QUALIFICATIONS, INCLUDING TECHNICAL KNOWLEDGE, NECESSARY TO PERFORM THE PROPOSED CONTRACT; THAT ON ONE PAST CONTRACT FOR SIGNAL DATA REPRODUCER IT DELIVERED THE MATERIAL SIX MONTHS AHEAD OF SCHEDULE; THAT ADEQUATE EXPLANATIONS WERE FURNISHED FOR ITS DELINQUENCIES ON FIVE OF ITS CURRENT CONTRACTS, ALL OF WHICH WERE SCHEDULED FOR COMPLETION BY JULY 31, 1965, OR FOUR MONTHS PRIOR TO THE FIRST DELIVERY DATE UNDER THE PROPOSED CONTRACT, BASED ON A JUNE 30, 1965, AWARD DATE; AND THAT DELIVERIES UNDER THE SIXTH DELINQUENT CONTRACT WILL HAVE VIRTUALLY NO EFFECT ON FALT PRODUCTION. IT WAS FURTHER REPORTED THAT FEL'S INITIAL MODEL OF THE FALT UNDER ITS CURRENT CONTRACT HAD BEEN COMPLETED AND DEBUGGED AND HAD DEMONSTRATED SATISFACTORY PERFORMANCE AND THAT A REVISED PRODUCTION SCHEDULE INDICATED THAT DELIVERIES WOULD BE COMPLETED PRIOR TO THE REQUIRED DELIVERY DATES UNDER THE PRESENT IFB. ACCORDINGLY, IT WAS THE RECOMMENDATION OF BOTH THE NYPD AND THE ARSENAL'S REPRESENTATIVE THAT THE PROPOSED CONTRACT BE AWARDED TO FREQUENCY ENGINEERING.

IT IS THE POSITION OF THE CONTRACTING OFFICER, BASED ON THE FAVORABLE PREAWARD SURVEY REPORT AND OTHER EVIDENCE OF THE CAPABILITY OF FREQUENCY ENGINEERING, THAT IT SHOULD BE AWARDED THE CONTRACT. HOWEVER, AWARD IS BEING WITHHELD PENDING OUR DECISION ON YOUR PROTEST.

THE APPLICABLE PROCUREMENT STATUTE, 10 U.S.C. 2305 (C), REQUIRES THAT A CONTRACT AWARD PURSUANT TO FORMAL ADVERTISING BE MADE TO THE RESPONSIBLE BIDDER WHOSE BID IS RESPONSIVE AND WILL BE MOST ADVANTAGEOUS TO THE UNITED STATES. ARTICLE 8 (A), TERMS AND CONDITIONS OF THE INVITATION FOR BIDS, SMUFA FORM 20-1872-3, CONTAINS LANGUAGE SIMILAR TO THE LANGUAGE OF THE STATUTE. ARMED SERVICES PROCUREMENT REGULATION 1-904 PRECLUDES AWARD OF A CONTRACT UNLESS THE BIDDER IS DETERMINED TO BE RESPONSIBLE.

THE RESPONSIBILITY OF A BIDDER IS PRIMARILY A MATTER FOR DETERMINATION BY THE CONTRACTING AGENCY, AND SUCH DETERMINATIONS ARE NOT QUESTIONED BY OUR OFFICE IN THE ABSENCE OF CONVINCING EVIDENCE OF FRAUD, COLLUSION, BAD FAITH, OR LACK OF ANY SUBSTANTIAL FACTUAL BASIS. 37 COMP. GEN. 703, 705. MOREOVER, WE HAVE FREQUENTLY HELD THAT DEFICIENT PERFORMANCE OF A PARTICULAR CONTRACTOR ON A PAST PROCUREMENT DOES NOT PER SE WARRANT A FINDING THAT THE BIDDER IS NONRESPONSIBLE. NOT ONLY SHOULD THERE BE CONSIDERED THE CIRCUMSTANCES GIVING RISE TO THE DEFICIENT PAST PERFORMANCE, BUT THE DETERMINATION OF RESPONSIBILITY SHOULD BE BASED ON THE SITUATION EXISTING AT THE TIME THE DETERMINATION IS MADE. 43 COMP. GEN. 323; B-155600, FEBRUARY 25, 1965.

THE RECORD BEFORE US INDICATES THAT WHILE THERE HAVE BEEN DEFICIENCIES IN SOME OF FREQUENCY ENGINEERING'S CONTRACT PERFORMANCES, ACTION HAS BEEN TAKEN BY THE FIRM TO CORRECT SUCH FAILINGS WITH A VIEW TO COMPLETING ALL BUT ONE OF THE DELINQUENT CONTRACTS WELL IN ADVANCE OF THE TIME DELIVERIES WILL BE REQUIRED TO COMMENCE UNDER THE PROPOSED CONTRACT. ACCORDINGLY, AND SINCE THE PERFORMANCE OF THE REMAINING DELINQUENT CONTRACT REPORTEDLY WILL NOT AFFECT FREQUENCY ENGINEERING'S PERFORMANCE OF THE PROPOSED CONTRACT, IT IS OUR VIEW THAT THE RECORD DOES NOT AFFORD A LEGAL BASIS TO QUESTION THE DETERMINATION OF THE CONTRACTING OFFICER THAT IT IS A RESPONSIBLE BIDDER.

IN VIEW OF OUR DECISION CONCERNING THE ELIGIBILITY OF FREQUENCY ENGINEERING, AS THE LOWEST RESPONSIBLE BIDDER, FOR AWARD OF THE PROPOSED CONTRACT, AS RECOMMENDED BY THE CONTRACTING OFFICER, THERE IS NO NECESSITY FOR CONSIDERING THE QUALIFICATIONS OF THE SECOND AND THIRD LOW BIDDERS.

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