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B-155241, DEC. 1, 1964

B-155241 Dec 01, 1964
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WAS A MULTI- YEAR PROCUREMENT AND COMPRISED A REQUIREMENT FOR 24. THE REQUIREMENT FOR FISCAL YEAR 1965 WAS FOR 10. THE ABSTRACT OF BIDS INDICATES YOUR BID WAS NOT THE LOWEST BID RECEIVED. YOU HAVE PROTESTED AN AWARD TO EITHER LIECO. YOU ALLEGE THAT NEITHER OF THESE BIDDERS ARE QUALIFIED TO MEET THE REQUIREMENTS OF PARAGRAPHS 2. 4 AND 8 OF THE "INFORMATION TO BIDDERS" WHICH WAS ATTACHED TO THE ABOVE INVITATION. THE "INFORMATION TO BIDDERS" PROVIDES THAT THE FOLLOWING FACTORS WILL BE CONSIDERED IN THE PRE-AWARD SURVEY: "2. IT IS THE POSITION OF OUR OFFICE THAT DETERMINATIONS REGARDING THE RESPONSIBILITY OF A BIDDER ARE PRIMARILY THE FUNCTION OF THE PROCURING ACTIVITY AND THAT SUCH DETERMINATIONS WILL NOT BE QUESTIONED BY OUR OFFICE UNLESS SHOWN TO BE ARBITRARY.

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B-155241, DEC. 1, 1964

TO AMERICAN ELECTRIC, INCORPORATED:

WE REFER TO YOUR LETTER DATED SEPTEMBER 4, 1964, TO THE CONTRACTING OFFICER, UNITED STATES NAVAL ORDNANCE PLANT, LOUISVILLE, KENTUCKY, PROTESTING THE AWARD OF A CONTRACT UNDER INVITATION FOR BIDS NO. 197 436- 64. AS REQUESTED, YOUR LETTER OF SEPTEMBER 4, 1964, HAS BEEN FORWARDED TO OUR OFFICE FOR REVIEW BY THE DEPARTMENT OF THE NAVY.

THE ABOVE INVITATION ISSUED BY THE CONTRACTING OFFICER, UNITED STATES NAVAL ORDNANCE PLANT, LOUISVILLE, KENTUCKY, ON JUNE 19, 1964, WAS A MULTI- YEAR PROCUREMENT AND COMPRISED A REQUIREMENT FOR 24,000 BOMB FINS, MK 14, MOD 1, IN ACCORDANCE WITH APPLICABLE SPECIFICATIONS AND 2,000 CINCH RING SPANNERS FOR FISCAL YEAR 1964. THE REQUIREMENT FOR FISCAL YEAR 1965 WAS FOR 10,000 OF THE BOMB FINS AND 834 OF THE CINCH RING SPANNERS.

THE ABSTRACT OF BIDS INDICATES YOUR BID WAS NOT THE LOWEST BID RECEIVED. YOU HAVE PROTESTED AN AWARD TO EITHER LIECO, INCORPORATED, OR COLUMBUS MILPAR AND MANUFACTURING COMPANY, BOTH OF WHICH SUBMITTED BIDS LOWER THAN YOURS. YOU ALLEGE THAT NEITHER OF THESE BIDDERS ARE QUALIFIED TO MEET THE REQUIREMENTS OF PARAGRAPHS 2, 4 AND 8 OF THE "INFORMATION TO BIDDERS" WHICH WAS ATTACHED TO THE ABOVE INVITATION. THE "INFORMATION TO BIDDERS" PROVIDES THAT THE FOLLOWING FACTORS WILL BE CONSIDERED IN THE PRE-AWARD SURVEY:

"2. PRODUCTION EXPERIENCE:

BIDDER'S ABILITY TO DEMONSTRATE PRESENT COMPETENCE AND PREVIOUS EXPERIENCE IN THE PRODUCTION OF PRODUCTS HAVING COMPARABLE CHARACTERISTICS OF RELIABILITY, MECHANICAL PRECISION AND COMPLEXITY.

"4. FACILITIES:

ADEQUACY AND AVAILABILITY OF PROCESS ENGINEERING, TEST AND PRODUCTION FACILITIES (INCLUDING PRODUCTION AND ASSEMBLY AREAS) REQUIRED TO MEET BIDDER'S TIME PHASED SCHEDULES.

"8. FINANCIAL CAPABILITY:

THE OVERALL FINANCIAL CAPABILITY OF THE BIDDER TO HANDLE THIS PROGRAM CONSIDERING OTHER WORKLOADS, FINANCIAL COMMITMENTS AND CREDIT AVAILABILITY.'

THE QUALIFICATIONS SPECIFIED IN THE PARAGRAPHS QUOTED ABOVE RELATE TO THE DETERMINATION OF THE RESPONSIBILITY OF A BIDDER. SEE 39 COMP. GEN. 173. IT IS THE POSITION OF OUR OFFICE THAT DETERMINATIONS REGARDING THE RESPONSIBILITY OF A BIDDER ARE PRIMARILY THE FUNCTION OF THE PROCURING ACTIVITY AND THAT SUCH DETERMINATIONS WILL NOT BE QUESTIONED BY OUR OFFICE UNLESS SHOWN TO BE ARBITRARY, CAPRICIOUS OR IN BAD FAITH. AWARD UNDER THIS INVITATION WAS MADE TO COLUMBUS MILPAR WHICH SUBMITTED A BID LOWER THAN YOURS PURSUANT TO A PRE-AWARD SURVEY ON COLUMBUS MILPAR CONDUCTED BY THE NAVAL ORDNANCE PLANT, LOUISVILLE, KENTUCKY AND THE INSPECTOR OF NAVAL MATERIAL, CINCINNATI, OHIO. THE RESULTS OF THIS SURVEY INDICATED THAT COLUMBUS MILPAR WOULD SATISFACTORILY BE ABLE TO PERFORM A CONTRACT AWARDED UNDER THIS INVITATION. PURSUANT TO OUR REVIEW OF THIS MATTER WE FIND NO EVIDENCE THAT THE DETERMINATION THAT COLUMBUS MILPAR WAS A RESPONSIBLE BIDDER WAS ARBITRARY, CAPRICIOUS OR IN BAD FAITH. CONSEQUENTLY, YOUR PROTEST IS DENIED. SEE 38 COMP. ..END :

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