B-134535, DEC. 30, 1957

B-134535, DEC. 30, 1957

TO THE HONORABLE CLARENCE G. MORSE, CHAIRMAN, FEDERAL MARITIME BOARD:

IN YOUR LETTER OF DECEMBER 10, 1957, WITH FURTHER REFERENCE TO CERTAIN IRREGULARITIES IN THE BID OF BETHLEHEM-SPARROWS POINT SHIPYARD, INC., DISCUSSED IN YOUR LETTER OF NOVEMBER 27, 1957, YOU ADVISE THAT IN THE EVENT WE SHOULD CONCLUDE THAT THE BID OF BETHLEHEM IS NON-RESPONSIVE, THERE ARISES THE FURTHER QUESTION CONCERNING THE AUTHORITY OF AMERICAN EXPORT LINES, INC., TO AWARD TO BETHLEHEM PURSUANT TO THE PROVISIONS OF SECTION 504 OF THE MERCHANT MARINE ACT, 1936, AS AMENDED. YOU FURTHER ADVISE THAT IT IS THE BOARD'S CONCLUSION THAT UNDER THE PROVISIONS OF SECTION 504, AMERICAN EXPORT'S SELECTION OF A RESPONSIVE BIDDER, OTHER THAN THE LOWEST RESPONSIVE BID, COULD BE APPROVED BY THE BOARD, BUT THAT THE BOARD IS NOT AUTHORIZED TO APPROVE THE AWARD TO A BIDDER DETERMINED TO BE NON RESPONSIVE.

IN OUR DECISION OF DECEMBER 17, 1957, B-134535, IN RESPONSE TO YOUR LETTER OF NOVEMBER 27, WE CONCLUDED THAT BETHLEHEM'S BID WAS NON RESPONSIVE. FURTHERMORE, WE STATED THAT TO ACCEPT THE BIDDER'S PROPOSAL UNDER THE CIRCUMSTANCES MANIFESTLY WOULD BE UNFAIR TO THOSE BIDDERS WHO HAVE NOT SIMILARLY QUALIFIED THEIR BIDS, AND WOULD RESULT IN A FRUSTRATION OF THE APPARENT INTENT OF SECTIONS 504 AND 505 OF THE MERCHANT MARINE ACT, 1936, AS AMENDED, THAT THE PROCUREMENT OF COMPETITIVE BIDS BE CONDUCTED UPON AN EQUAL BASIS AND THAT AWARD BE MADE TO THE LOWEST RESPONSIVE BIDDER.

IN VIEW OF THE FOREGOING, AND SINCE SECTION 504 OF THE ACT SPECIFICALLY PROVIDES THAT THE ,CONSTRUCTION-DIFFERENTIAL SUBSIDY AND PAYMENTS FOR NATIONAL DEFENSE FEATURES SHALL BE BASED ON THE LOWEST RESPONSIBLE DOMESTIC BID," WE CONCUR IN THE BOARD'S VIEW THAT IT LACKS AUTHORITY TO APPROVE AN AWARD TO BETHLEHEM-SPARROWS POINT SHIPYARD, INC. ..END :