Skip to main content

B-142796, MAY 17, 1960, 39 COMP. GEN. 779

B-142796 May 17, 1960
Jump To:
Skip to Highlights

Highlights

CONDITIONS THE PRICE UPON RECEIPT OF NOTICE OF AWARD IN A MUCH SHORTER PERIOD OF TIME IS A BID WHICH CONTAINS A MATERIAL DEVIATION FROM THE REQUIREMENTS AND MUST BE REJECTED AS NONRESPONSIVE TO THE INVITATION. A BID WHICH IS RESPONSIVE TO ONE ITEM. IF IT IS ADMINISTRATIVELY DETERMINED TO BE IN THE BEST INTERESTS OF THE GOVERNMENT TO PROCURE ONLY ONE ITEM. OTHER SIGNIFICANT PROVISIONS OF THE INVITATION ARE AS FOLLOWS: AWARD: AWARD WILL BE TO ONE BIDDER. WILL BE CONSIDERED NONRESPONSIVE AND WILL BE REJECTED. BIDS WERE REQUIRED TO REMAIN OPEN FOR ACCEPTANCE 90 OR MORE CALENDAR DAYS FROM APRIL 21. IT IS REPORTED THAT BIDS WERE RECEIVED FROM TWO FIRMS. IT IS STATED THAT THE MIEHLE BID IS RESPONSIVE AS TO ITEM NO. 1 BUT THAT THE FIRM NOTED EXCEPTIONS TO THE SPECIFICATIONS FOR ITEM NO. 2 (A) AND (B) OF SO SUBSTANTIAL A NATURE AS TO RENDER THAT PORTION OF THE BID NONRESPONSIVE.

View Decision

B-142796, MAY 17, 1960, 39 COMP. GEN. 779

BIDS - QUALIFIED - ACCEPTANCE TIME DIFFERENCE - SEPARABLE OR AGGREGATE ITEMS A LOW BID WHICH, NOTWITHSTANDING THE STATEMENT THAT THE BID REMAINS OPEN FOR ACCEPTANCE FOR 90 DAYS AS REQUIRED IN THE INVITATION, CONDITIONS THE PRICE UPON RECEIPT OF NOTICE OF AWARD IN A MUCH SHORTER PERIOD OF TIME IS A BID WHICH CONTAINS A MATERIAL DEVIATION FROM THE REQUIREMENTS AND MUST BE REJECTED AS NONRESPONSIVE TO THE INVITATION. UNDER AN INVITATION WHICH PROVIDES FOR AWARD OF A TWO-ITEM PROCUREMENT TO ONE BIDDER BUT RESERVES TO THE GOVERNMENT THE RIGHT TO MAKE AN AWARD ON ONE ITEM ALONE, A BID WHICH IS RESPONSIVE TO ONE ITEM, BUT WHICH CONTAINS EXCEPTIONS TO THE SECOND ITEM SPECIFICATIONS, MAY BE ACCEPTED ON THE BASIS OF THE ONE ITEM, IF IT IS ADMINISTRATIVELY DETERMINED TO BE IN THE BEST INTERESTS OF THE GOVERNMENT TO PROCURE ONLY ONE ITEM; HOWEVER, THE BID ON THE BASIS OF BOTH ITEMS MUST BE CONSIDERED NONRESPONSIVE.

TO ADMIRAL H. ARNOLD KARO, MAY 17, 1960:

WE REFER TO A LETTER OF MAY 4, 1960, NO. XO-CRG. SIGNED BY THE ADMINISTRATIVE OFFICER, REQUESTING OUR VIEWS PURSUANT TO 36 COMP. GEN. 513, AS TO THE PROPER DISPOSITION OF BIDS SUBMITTED PURSUANT TO AN INVITATION ISSUED BY THE COAST AND GEODETIC SURVEY ON MARCH 31, 1960, SOLICITING BIDS FOR A LITHOGRAPHIC OFFSET FIVE-COLOR PRESS AND ACCESSORY EQUIPMENT.

ITEM 1 OF THE INVITATION CALLS FOR THE PRESS ITSELF, ITEM 2 (A) FOR A DOUBLE DELIVERY AND ITEM 2 (B) FOR A CONTINUOUS PILE FEEDER. OTHER SIGNIFICANT PROVISIONS OF THE INVITATION ARE AS FOLLOWS:

AWARD: AWARD WILL BE TO ONE BIDDER. THE GOVERNMENT RESERVES THE RIGHT TO MAKE AN AWARD ON ITEM 1 ALONE OR ON ITEM 1 AND ITEM 2 (A) (B).

BID ACCEPTANCE PERIOD: BIDS, OFFERING LESS THAN 90 CALENDAR DAYS FOR ACCEPTANCE BY THE GOVERNMENT FROM DATE OF THE PUBLIC OPENING SPECIFIED ON PAGE 1 OF THIS INVITATION, WILL BE CONSIDERED NONRESPONSIVE AND WILL BE REJECTED.

ANOTHER PROVISION APPEARING ON PAGE 4 OF THE INVITATION ADVISED THAT THE GOVERNMENT DESIRED DELIVERY IN THE SHORTEST POSSIBLE TIME. PURSUANT TO THE " BID ACCEPTANCE PERIOD" PARAGRAPH, BIDS WERE REQUIRED TO REMAIN OPEN FOR ACCEPTANCE 90 OR MORE CALENDAR DAYS FROM APRIL 21, 1960, OR UNTIL JULY 20, 1960.

IT IS REPORTED THAT BIDS WERE RECEIVED FROM TWO FIRMS. THE MIEHLE COMPANY, CHICAGO, ILLINOIS, SUBMITTED A BID IN THE NET AMOUNT OF $290,784 INCLUDING A TRADE-IN ALLOWANCE FOR AN OLD PRESS. IT IS STATED THAT THE MIEHLE BID IS RESPONSIVE AS TO ITEM NO. 1 BUT THAT THE FIRM NOTED EXCEPTIONS TO THE SPECIFICATIONS FOR ITEM NO. 2 (A) AND (B) OF SO SUBSTANTIAL A NATURE AS TO RENDER THAT PORTION OF THE BID NONRESPONSIVE.

THE HARRIS-SEYBOLD COMPANY, THE OTHER BIDDER, TOOK NO EXCEPTION TO THE SPECIFICATIONS IN ANY OF THREE ALTERNATIVES CONTAINED IN ITS BID. HOWEVER, WHILE THE HARRIS-SEYBOLD BID CONTAINED THE NOTATION BELOW THE " BID ACCEPTANCE PERIOD" THAT," THIS BID REMAINS OPEN FOR ACCEPTANCE FOR 90 S," ALTERNATIVES 1 AND 2 IN THE NET AMOUNT OF $284,812 INCLUDING TRADE-IN ALLOWANCE WERE CONDITIONED UPON RECEIPT OF NOTICE OF AWARD BEFORE MAY 5, 1960. THE THIRD HARRIS-SEYBOLD ALTERNATIVE, OFFERED WITHOUT CONDITION OR QUALIFICATION, WAS IN THE NET AMOUNT OF $301,412, INCLUDING TRADE-IN ALLOWANCE.

IT IS AXIOMATIC THAT A BID MAY BE CONSIDERED FOR AWARD ONLY IF IT COMPLIES IN ALL MATERIAL RESPECTS WITH THE TERMS OF THE INVITATION. SEE 17 COMP. GEN. 554. A PROVISION IN AN INVITATION REQUIRING THAT A BID TO BE CONSIDERED FOR AWARD MUST REMAIN AVAILABLE FOR ACCEPTANCE FOR A DESIGNATED PERIOD IS A MATERIAL REQUIREMENT AND FAILURE TO CONFORM THEREWITH RENDERS THE BID NONRESPONSIVE. B-140978, OCTOBER 29, 1959, AND B-136528, AUGUST 6, 1958. IT IS CLEAR THAT THE FIRST TWO ALTERNATIVES IN THE HARRIS-SEYBOLD BID, NOTWITHSTANDING THE STATEMENT IN THE BID THAT IT REMAINS OPEN FOR ACCEPTANCE FOR 90 DAYS, ARE CONDITIONED UPON ACCEPTANCE WITHIN A PERIOD MATERIALLY LESS THAN PROVIDED BY THE TERMS OF THE INVITATION. THEREFORE, IN ACCORDANCE WITH THE FOREGOING, THE FIRST TWO ALTERNATIVES IN THE HARRIS-SEYBOLD BID MAY NOT BE CONSIDERED FOR AWARD.

WHETHER THE NEXT LOW BID, THAT OF THE MIEHLE COMPANY, MAY BE CONSIDERED FOR AWARD IS DEPENDENT UPON WHETHER IT IS ADMINISTRATIVELY DETERMINED TO BE IN THE BEST INTEREST OF THE GOVERNMENT TO PROCURE ITEM NO. 1 ALONE OR TO PURCHASE BOTH ITEM NOS. 1 AND 2. IF THE FORMER, AWARD MAY BE MADE TO THE MIEHLE COMPANY AS THE LOW RESPONSIVE BIDDER; IF THE LATTER, HOWEVER, THE EXCEPTIONS NOTED TO THE SPECIFICATIONS APPLICABLE TO ITEM NO. 2 BECOME SIGNIFICANT AND RENDER THAT BID NONRESPONSIVE. ACCORDINGLY, IF IT IS DETERMINED ADMINISTRATIVELY IN THE BEST INTEREST OF THE GOVERNMENT TO PROCURE BOTH ITEMS, THE LOW ACCEPTABLE BID BECOMES THE THIRD ALTERNATIVE BID OFFERED BY HARRIS SEYBOLD AT THE NET PRICE OF $301,412. SHOULD HARRIS -SEYBOLD THEREBY BECOME ELIGIBLE FOR CONSIDERATION, THERE WOULD, OF COURSE, BE NO OBJECTION TO A VOLUNTARY REDUCTION IN PRICE BY THAT FIRM. SEE LEITMAN V. UNITED STATES, 104 C.1CLS. 324. ..END :

GAO Contacts

Office of Public Affairs