B-150318, APR. 22, 1963
Highlights
YOU REPEAT YOUR CONTENTION THAT THE RECEIPT OF TWO UNREALISTICALLY LOW BIDS INDICATES THAT COMPETITIVE BIDS WERE NOT RECEIVED. WE ARE NOT AWARE OF ANY MEANS BY WHICH SPECIFICATIONS COULD BE DRAWN TO POSITIVELY INSURE THAT A BIDDER DOES NOT SUBMIT AN UNPROFITABLY PRICE.
B-150318, APR. 22, 1963
TO ELCOM CORPORATION:
IN YOUR LETTER OF MARCH 29, 1963, YOU ASKED US TO REVIEW OUR DECISION DATED MARCH 25, 1963, IN WHICH WE DENIED YOUR PROTEST AGAINST THE AWARD OF ANY CONTRACT UNDER INVITATION FOR BIDS 04-606-63-65.
YOU REPEAT YOUR CONTENTION THAT THE RECEIPT OF TWO UNREALISTICALLY LOW BIDS INDICATES THAT COMPETITIVE BIDS WERE NOT RECEIVED. IN REPLY, WE MUST REITERATE THAT THE SUBMISSION OF A BELOW-COST BID DOES NOT CONSTITUTE LEGAL JUSTIFICATION FOR REJECTION OF THAT BID. FURTHERMORE, WE ARE NOT AWARE OF ANY MEANS BY WHICH SPECIFICATIONS COULD BE DRAWN TO POSITIVELY INSURE THAT A BIDDER DOES NOT SUBMIT AN UNPROFITABLY PRICE. WE RECOGNIZE, OF COURSE, THAT GENERALLY A BIDDER CANNOT COMPETE WITH ONE WHO SUBMITS A BID BELOW COST. HOWEVER, WE KNOW NO LEGAL OR PROPER BASES FOR REJECTING SUCH A BID. IN VIEW THEREOF, WE SEE NO LEGAL JUSTIFICATION FOR CHANGING OUR PREVIOUS CONCLUSION.