B-140053, AUG. 11, 1959
Highlights
TO FLEET STORAGE CORPORATION: REFERENCE IS MADE TO YOUR TELEGRAM DATED JUNE 29. THEN YOUR BID FOR EACH INDIVIDUAL VESSEL WAS $36. THE SAME PATTERN WAS USED ON INVITATION NO. WAS ACCEPTABLE. THE EFFECT OF THIS EXERCISE OF CHOICE WAS TO ELIMINATE THE FIRST ALTERNATIVE OF YOUR BID. 666 WAS CONSIDERED ACCEPTABLE. WAS ACCEPTABLE TO THE GOVERNMENT. YOUR BID ON INDIVIDUAL VESSELS WAS NOT USED AGAINST YOU. EVALUATION OF BIDS UNDER INVITATION TO BID B-212-59-131 WAS CONDUCTED ON THE SAME BASIS.
B-140053, AUG. 11, 1959
TO FLEET STORAGE CORPORATION:
REFERENCE IS MADE TO YOUR TELEGRAM DATED JUNE 29, 1959, PROTESTING THE ACTION OF THE DEPARTMENT OF THE NAVY IN AWARDING CONTRACTS TO OTHERS THAN YOUR CONCERN UNDER INVITATIONS NOS. B-211-59-131 AND B-212 59-131.
THE ADMINISTRATIVE REPORT REQUESTED OF THE DEPARTMENT OF THE NAVY ON THOSE MATTERS HAS NOW BEEN RECEIVED. ON INVITATION NO. B-211-59-131 YOU LISTED YOUR FIRST CHOICE OFFERING TO PURCHASE ALL FIVE VESSELS FOR $176,099. YOUR SECOND CHOICE OFFERED TO PURCHASE FOUR VESSELS, YOUR THIRD CHOICE THREE VESSELS, AND SO DOWN THE LINE. THEN YOUR BID FOR EACH INDIVIDUAL VESSEL WAS $36,290. AFTER EACH CHOICE YOU STATED "DO NOT USE OUR OWN INDIVIDUAL BIDS AGAINST US.' THE SAME PATTERN WAS USED ON INVITATION NO. B-212-59-131.
UNDER PARAGRAPH 3 OF BOTH INVITATIONS TO BID THE GOVERNMENT RESERVED THE RIGHT TO ACCEPT A BID ON ANY ONE OR GROUP OF ITEMS AS MIGHT BE IN THE BEST INTEREST OF THE GOVERNMENT.
IN EVALUATING THE BIDS RECEIVED, THE DEPARTMENT OF THE NAVY CONSIDERED THAT THE HIGH BID OF $37,333.33, SUBMITTED BY PHILLIPS WALKER SALES COMPANY ON ITEM 1, SALES INVITATION B-211-59-131, WAS ACCEPTABLE. THE EFFECT OF THIS EXERCISE OF CHOICE WAS TO ELIMINATE THE FIRST ALTERNATIVE OF YOUR BID. SIMILARLY, ON ITEM 5, THE BID OF $38,666 WAS CONSIDERED ACCEPTABLE, THUS ELIMINATING THE SECOND ALTERNATIVE OF YOUR BID. THE THIRD ALTERNATIVE OF YOUR BID, OFFERING TO PURCHASE ANY THREE VESSELS FOR $101,789, WAS ACCEPTABLE TO THE GOVERNMENT. IN THIS MANNER THE GOVERNMENT OBTAINED THE HIGHEST MONETARY RETURN WITHOUT IN ANY WAY DISTURBING THE ORDER OF CHOICE AS CONTAINED IN YOUR BID, AND YOUR BID ON INDIVIDUAL VESSELS WAS NOT USED AGAINST YOU.
EVALUATION OF BIDS UNDER INVITATION TO BID B-212-59-131 WAS CONDUCTED ON THE SAME BASIS.
THE ABOVE DESCRIBED METHOD OF EVALUATION REFLECTS A TOTAL NET RETURN OF $12,029 GREATER THAN THE COMBINED FIRST CHOICE BID OF YOUR CONCERN.
FOR THE REASONS ABOVE INDICATED, OUR OFFICE WOULD NOT BE JUSTIFIED IN OBJECTING TO THE ACTION TAKEN BY THE DEPARTMENT OF THE NAVY IN THE MATTER.