B-140053, DEC. 3, 1959
Highlights
TO THE FLEET STORAGE CORPORATION: REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 9. YOU WERE ADVISED BY OUR LETTER OF AUGUST 11. THAT THE AWARDS WERE MADE IN A MANNER WHEREBY THE GOVERNMENT OBTAINED THE HIGHEST MONETARY RETURN WITHOUT IN ANY WAY DISTURBING THE ORDER OF CHOICE AS CONTAINED IN YOUR BIDS. THAT YOUR BID ON INDIVIDUAL VESSELS WAS NOT USED AGAINST YOU. THAT THE AWARD AS MADE UNDER THE PRESENT INVITATION WAS NOT MADE IN SUCH A WAY AS TO BRING THE GOVERNMENT THE HIGHEST MONETARY RETURN. B-28-60-131 TO UNION MINERALS AND ALLOYS CORPORATION WAS BASED ON THE FACT THAT THE FIRST CHOICE BID SUBMITTED BY THAT COMPANY FOR THE THREE VESSELS AS A GROUP RESULTED IN A GREATER MONETARY RETURN TO THE GOVERNMENT THAN DID THE COMBINED INDIVIDUAL BIDS FROM THE HIGHER BIDDERS ON AN INDIVIDUAL VESSEL BASIS.
B-140053, DEC. 3, 1959
TO THE FLEET STORAGE CORPORATION:
REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 9, 1959, PROTESTING THE ACTION OF THE DEPARTMENT OF THE NAVY IN AWARDING A CONTRACT TO UNION MINERALS AND ALLOYS CORPORATION UNDER INVITATION NO. B-28-60-131.
IN CONNECTION WITH A PREVIOUS PROTEST AGAINST THE ACTION OF THE DEPARTMENT OF THE NAVY AWARDING CONTRACTS TO OTHER THAN YOUR CONCERN UNDER INVITATION NOS. B-211-59-131 AND B-212-59-131, YOU WERE ADVISED BY OUR LETTER OF AUGUST 11, 1959, THAT THE AWARDS WERE MADE IN A MANNER WHEREBY THE GOVERNMENT OBTAINED THE HIGHEST MONETARY RETURN WITHOUT IN ANY WAY DISTURBING THE ORDER OF CHOICE AS CONTAINED IN YOUR BIDS, AND THAT YOUR BID ON INDIVIDUAL VESSELS WAS NOT USED AGAINST YOU. YOU CONTEND IN YOUR LETTER OF OCTOBER 9, 1959, THAT THE AWARD AS MADE UNDER THE PRESENT INVITATION WAS NOT MADE IN SUCH A WAY AS TO BRING THE GOVERNMENT THE HIGHEST MONETARY RETURN.
THE RECORD BEFORE US DISCLOSES THAT YOU DID NOT BID UNDER THE INVITATION INVOLVED. THE DECISION TO AWARD THE ITEMS ON INVITATION NO. B-28-60-131 TO UNION MINERALS AND ALLOYS CORPORATION WAS BASED ON THE FACT THAT THE FIRST CHOICE BID SUBMITTED BY THAT COMPANY FOR THE THREE VESSELS AS A GROUP RESULTED IN A GREATER MONETARY RETURN TO THE GOVERNMENT THAN DID THE COMBINED INDIVIDUAL BIDS FROM THE HIGHER BIDDERS ON AN INDIVIDUAL VESSEL BASIS. THE TOTAL BID RECEIVED FROM UNION MINERALS AND ALLOYS CORPORATION WAS $719,689.89. THE TOTAL OF HIGH BIDS RECEIVED ON AN INDIVIDUAL SHIP BASIS WAS $689,777.76.
THE POSSIBILITY OF ACCEPTING THE SECOND CHOICE BID FROM UNION MINERALS AND ALLOYS CORPORATION FOR THE FIRST TWO VESSELS OFFERED AND THE BID OF THE BOSTON METALS COMPANY FOR THE THIRD VESSEL WAS CONSIDERED. THIS WOULD HAVE RESULTED IN A GREATER RETURN TO THE GOVERNMENT. HOWEVER, CONTRARY TO YOUR BELIEF, THE BID OF UNION MINERALS AND ALLOYS CORPORATION WAS NOT EXACTLY AND WORD FOR WORD PATTERNED AFTER YOUR BIDS UNDER INVITATIONS NOS. B-211-59-131 AND B 212-59-131. THE WORDING OF THE UNION MINERALS AND ALLOYS CORPORATIONS' SECOND CHOICE BID CONTAINED A RESTRICTIVE CLAUSE, NAMELY,"IF WE ARE NOT THE HIGHEST BIDDER UNDER OUR FIRST CHOICE * * *.' INASMUCH AS UNION MINERALS AND ALLOYS CORPORATION WAS THE HIGHEST BIDDER ON THEIR FIRST CHOICE BID, THE RESTRICTIVE WORDING OF THE SECOND CHOICE BID PRECLUDED CONSIDERATION OF THAT BID.
FOR THE REASONS ABOVE INDICATED, OUR OFFICE WOULD NOT BE JUSTIFIED IN OBJECTING TO THE ACTION TAKEN BY THE DEPARTMENT OF THE NAVY IN THE MATTER.
YOUR INTEREST AND SERVICE IN BRINGING THE MATTER TO OUR ATTENTION IS APPRECIATED.