B-205750, FEB 26, 1982

B-205750: Feb 26, 1982

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DIGEST: FAILURE TO CONSIDER TRANSPORTATION COSTS IN BID EVALUATION WAS PROPER WHERE SOLICITATION PROVIDES THAT TRANSPORTATION COSTS ARE AN EVALUATION FACTOR "AS APPLICABLE. " AND ANOTHER SOLICITATION SECTION INCORPORATES BY REFERENCE A DAR PROVISION WHICH PROVIDES THAT TRANSPORTATION COSTS WILL NOT BE CONSIDERED AS AN EVALUATION FACTOR FOR THIS SOLICITATION. ADVISE THAT TRANSPORTATION COSTS WILL NOT BE CONSIDERED UNDER THE SOLICITATION. MKB ASSERTS THAT IF TRANSPORTATION COSTS ARE CONSIDERED. MKB'S VIEW OF THE SOLICITATION IS ERRONEOUS. THE SOLICITATION PROVISION CONCERNING EVALUATION OF BIDS STATED IN PERTINENT PART: "*** BIDS *** WILL BE EVALUATED BY ADDING THE EXTENDED PRICES *** FOR BASIC AWARD QUANTITIES SET FORTH IN THE SCHEDULE.

B-205750, FEB 26, 1982

DIGEST: FAILURE TO CONSIDER TRANSPORTATION COSTS IN BID EVALUATION WAS PROPER WHERE SOLICITATION PROVIDES THAT TRANSPORTATION COSTS ARE AN EVALUATION FACTOR "AS APPLICABLE," AND ANOTHER SOLICITATION SECTION INCORPORATES BY REFERENCE A DAR PROVISION WHICH PROVIDES THAT TRANSPORTATION COSTS WILL NOT BE CONSIDERED AS AN EVALUATION FACTOR FOR THIS SOLICITATION. THE TWO PROVISIONS, WHEN READ TOGETHER, ADVISE THAT TRANSPORTATION COSTS WILL NOT BE CONSIDERED UNDER THE SOLICITATION.

MKB MANUFACTURING CORPORATION:

MKB MANUFACTURING CORPORATION (MKB) PROTESTS THE DEPARTMENT OF THE AIR FORCE'S (AIR FORCE) AWARD OF A CONTRACT NO. F09603-82-C-0233, FOR SLEEVE ASSEMBLIES FOR AN AIR FORCE MISSILE TO P/M ENGINEERING CO. (P/M). MKB ALLEGES THAT THE AIR FORCE IMPROPERLY REFUSED TO CONSIDER TRANSPORTATION COSTS IN THE BID EVALUATION AS REQUIRED UNDER THE TERMS OF THE SOLICITATION AND THIS RESULTED IN AN ERRONEOUS AWARD TO P/M. MKB ASSERTS THAT IF TRANSPORTATION COSTS ARE CONSIDERED, MKB WOULD BE THE LOW BIDDER UNDER THIS SOLICITATION.

WE DENY THE PROTEST.

MKB'S VIEW OF THE SOLICITATION IS ERRONEOUS. THE SOLICITATION PROVISION CONCERNING EVALUATION OF BIDS STATED IN PERTINENT PART:

"*** BIDS *** WILL BE EVALUATED BY ADDING THE EXTENDED PRICES *** FOR BASIC AWARD QUANTITIES SET FORTH IN THE SCHEDULE. OTHER PRICE FACTORS (E.G., FIRST ARTICLES, TRANSPORTATION, PACKAGING) SHALL THEN BE ADDED AS APPLICABLE TO ARRIVE AT A TOTAL PRICE EVALUATION."

THUS, THE SOLICITATION ADVISED THAT OTHER PRICE FACTORS SUCH AS TRANSPORTATION COSTS WOULD BE CONSIDERED ONLY "AS APPLICABLE." THE SOLICITATION ALSO SPECIFICALLY REFERENCED DEFENSE ACQUISITION REGULATION (DAR) SEC. 7-2003.70 (DPCNO.76-8, JUNE 15, 1977), "EVALUATION OF TRANSPORTATION COSTS." THIS DAR PROVISION STATES THAT "COSTS OF TRANSPORTING SUPPLIES TO BE DELIVERED UNDER THIS CONTRACT WILL NOT BE AN EVALUATION FACTOR." WHEN THE TWO SOLICITATION PROVISIONS ARE READ TOGETHER, CONTRARY TO MKB'S ASSERTION, BIDDERS WERE ADVISED THAT TRANSPORTATION COSTS WOULD NOT BE CONSIDERED AS AN EVALUATION FACTOR.

UNDER THESE CIRCUMSTANCES, THE AIR FORCE PROPERLY EVALUATED THE BIDS WITHOUT CONSIDERATION OF TRANSPORTATION COSTS, AND THE AWARD TO P/M WAS PROPER. THEREFORE, MKB'S CLAIM FOR BID PREPARATION COSTS IS DENIED. TRANS-ALASKA MECHANICAL CONTRACTORS, B-204737, SEPTEMBER 29, 1981, 81-2 CPD 268.

WE DENY THE PROTEST.