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B-163671, JUL. 18, 1968

B-163671 Jul 18, 1968
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POSTMASTER GENERAL: REFERENCE IS MADE TO LETTER OF APRIL 18. THERE IS ENCLOSED FOR YOUR INFORMATION A COPY OF OUR LETTER OF TODAY TO THE PROTESTANT. THE PROTESTANT WAS ADVISED THAT THE MATTER WOULD BE BROUGHT TO YOUR ATTENTION WITH A REQUEST THAT APPROPRIATE STEPS BE TAKEN TO INSURE THAT PROPER PROCEDURES ARE FOLLOWED IN THE FUTURE. ATTENTION ALSO IS INVITED TO THE FACT THAT THE INVITATION REQUIRED BIDDERS TO HAVE A SERVICE ORGANIZATION IN OPERATION FOR A MINIMUM OF 10 YEARS. IT SEEMS TO US THAT THE EXPERIENCE REQUIREMENT OF 10 YEARS IS AN UNNJUSTIFIABLY LONG PERIOD OF TIME. SINCE BIDS WERE RECEIVED FROM ONLY TWO BIDDERS. ONE OF WHICH IS THE INSTALLER OF THE EQUIPMENT. THE REQUIREMENT MAY HAVE BEEN RESTRICTIVE OF COMPETITION AND MAY HAVE DISCOURAGED OTHER RESPONSIBLE BIDDERS FROM BIDDING.

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B-163671, JUL. 18, 1968

TO MR. POSTMASTER GENERAL:

REFERENCE IS MADE TO LETTER OF APRIL 18, 1968, FROM THE DIRECTOR, PROCUREMENT DIVISION, BUREAU OF FACILITIES, REPORTING ON THE PROTEST OF ELEVATOR SERVICE COMPANY, INC., AGAINST THE REJECTION OF ITS LOW BID SUBMITTED UNDER INVITATION FOR BIDS 8-066.

THERE IS ENCLOSED FOR YOUR INFORMATION A COPY OF OUR LETTER OF TODAY TO THE PROTESTANT. ALTHOUGH OUR OFFICE DENIED THE PROTEST, THE PROTESTANT WAS ADVISED THAT THE MATTER WOULD BE BROUGHT TO YOUR ATTENTION WITH A REQUEST THAT APPROPRIATE STEPS BE TAKEN TO INSURE THAT PROPER PROCEDURES ARE FOLLOWED IN THE FUTURE.

ATTENTION ALSO IS INVITED TO THE FACT THAT THE INVITATION REQUIRED BIDDERS TO HAVE A SERVICE ORGANIZATION IN OPERATION FOR A MINIMUM OF 10 YEARS. IT SEEMS TO US THAT THE EXPERIENCE REQUIREMENT OF 10 YEARS IS AN UNNJUSTIFIABLY LONG PERIOD OF TIME, AND SINCE BIDS WERE RECEIVED FROM ONLY TWO BIDDERS, ONE OF WHICH IS THE INSTALLER OF THE EQUIPMENT, THE REQUIREMENT MAY HAVE BEEN RESTRICTIVE OF COMPETITION AND MAY HAVE DISCOURAGED OTHER RESPONSIBLE BIDDERS FROM BIDDING. IT IS THEREFORE SUGGESTED THAT THE NECESSITY FOR A 10-YEAR EXPERIENCE REQUIREMENT SHOULD BE CAREFULLY CONSIDERED IN ANY FUTURE SIMILAR PROCUREMENT.

ANOTHER REQUIREMENT OF THE INVITATION IS THAT WESTINGHOUSE OR WESTINGHOUSE-APPROVED REPLACEMENT PARTS BE UTILIZED IN THE MAINTENANCE OF THE ELEVATORS. THIS REQUIREMENT IS OBJECTIONABLE BECAUSE IT PLACES IN THE CONTROL OF A VENDOR THE RIGHT TO DETERMINE WHAT REPLACEMENT PARTS ARE TO BE USED BY ITS COMPETITORS, WITHOUT AFFORDING TO THE LATTER THE OPPORTUNITY TO DEMONSTRATE TO THE GOVERNMENT THE EQUALITY OF REPLACEMENT PARTS OF DIFFERENT MANUFACTURE. ACCORDINGLY, IT IS RECOMMENDED THAT CONSIDERATION BE GIVEN TO RELAXING THE REQUIREMENT IN FUTURE INVITATIONS. SEE B-161521, APRIL 29, 1968, TO THE DIRECTOR OF THE DEFENSE SUPPLY AGENCY, AND B-164212, JUNE 18, 1968, 47 COMP. GEN. - --, SUGGESTING A REQUIREMENT TO PERMIT CONTRACTORS TO SUPPLY PARTS HAVING DEMONSTRATED COMMERCIAL ACCEPTABILITY AS AN ALTERNATIVE TO SUPPLYING ORIGINAL MANUFACTURERS' PARTS.

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