B-139332, OCT. 14, 1959

B-139332, OCT. 14, 1959

TO CHICAGO PNEUMATIC TOOL COMPANY:

REFERENCE IS MADE TO A COPY OF YOUR LETTER OF APRIL 10, 1959, ADDRESSED TO THE GENERAL SERVICES ADMINISTRATION, WASHINGTON, D.C., AND YOUR LETTER OF JUNE 22, 1959, PROTESTING THE AWARD BY THAT ADMINISTRATION OF A CONTRACT TO THE ENTERPRISE DIVISION OF GENERAL METALS CORPORATION FOR THE FURNISHING OF DIESEL ELECTRIC POWER PLANTS.

BY INVITATION NO. FN-3N-18051-A-12-29-58 THE GENERAL SERVICES ADMINISTRATION REQUESTED BIDS FOR THE FURNISHING OF DIESEL ELECTRIC POWER PLANTS. INASMUCH AS THE EQUIPMENT WAS DESTINED FOR INDONESIA, ONE OF THE REQUIREMENTS OF THE INVITATION WAS THAT THE BIDDER FURNISH WEIGHTS AND CUBIC MEASUREMENTS, AS DIRECTED UNDER ARTICLE 9 OF GSA FORM 1246. ARTICLE 9 PROVIDED THAT THE COST OF INLAND AND OCEAN FREIGHT WOULD BE USED IN EVALUATING BIDS. BIDDERS WERE DIRECTED TO STATE THE WEIGHTS AND CUBIC MEASUREMENTS. ALSO, THE ARTICLE PROVIDED THAT FAILURE TO STATE SUCH WEIGHTS AND CUBIC MEASUREMENTS WOULD CAUSE REJECTION OF A BID. BIDS WERE SOLICITED FROM TWENTY PROSPECTIVE BIDDERS AND SIX BIDDERS SUBMITTED BIDS ON ITEM 1, THE ITEM IN QUESTION. THE BID OF ENTERPRISE WAS THE LOWEST BID RECEIVED AND WAS ACCEPTED APRIL 8, 1959.

YOU CONTEND THAT THE BID SUBMITTED BY ENTERPRISE DID NOT FURNISH THE WEIGHTS AND CUBIC MEASUREMENTS REQUIRED BY THE INVITATION AND, CONSEQUENTLY, SHOULD HAVE BEEN REJECTED. FURTHER, YOU STATED IN YOUR LETTER OF JUNE 22, 1959, THAT THE GENERAL SERVICES ADMINISTRATION ADVISED YOUR OFFICE THAT WHILE ENTERPRISE GAVE ONLY TOTAL WEIGHT AND MEASUREMENT OF THE ENTIRE SHIPMENT, WHICH CONSISTED OF 19 BOXES, THAT ADMINISTRATION WAS ABLE TO EVALUATE SHIPPING COSTS BY ASSUMING THAT 18 BOXES WEIGHED ONE POUND EACH, AND THEN APPLYING HEAVY LIFT CHARGES AND FREIGHT ON A TONNAGE BASIS TO THE REMAINING BOX.

THE RECORD BEFORE US DISCLOSES THAT YOUR ALLEGATION AS TO THE METHOD USED IN EVALUATING THE ENTERPRISE BID IS INCORRECT. ENTERPRISE LISTED THE WEIGHTS AND CUBIC MEASUREMENTS FOR A COMPLETE UNIT OF ITEM 1 ON PAGE 22 OF ITS BID, AS FOLLOWS:

TABLE

ITEM NET GROSS CUBIC NO. OF LENGTH, WIDTH

NO. WEIGHT WEIGHT MEASURE CONTAINERS AND HEIGHT *

---- ------ ------ ------- ---------- ------------- 1)

ENG. AND EQUIPT. 39,400

43,800 836 18 100 BY 59 BY 156

GEN. AND EQUIPT. 13,900 15,290 620 8 100 BY 78 BY 70

S.G. AND EQUIPT. 25,750 29,065 695 3 108 BY 104 BY 107

TOTAL 79,050 88,155 2,151 29

* LARGEST BOX

THE TRANSPORTATION CHARGES FOR THE OCEAN MOVEMENT WERE DETERMINED BY APPLYING THE TARIFF RATE TO EITHER THE LONG TON (2,240 POUNDS) OR FOR EACH 40 CUBIC FEET OF DISPLACEMENT; WHICHEVER PRODUCED THE GREATEST REVENUE. THE CHARGES FOR HEAVY LIFT, IN ACCORDANCE WITH THE FREIGHT TARIFF, IS APPLICABLE TO THE WEIGHT PER LONG TON ONLY FOR EACH PACKAGE.

IN EVALUATING THE ENTERPRISE BID, THE FREIGHT RATE WAS APPLIED TO UNITS OF 20.9, 15.5, AND 17.37, DERIVED FROM THE CUBE RATHER THAN WEIGHT. THE HEAVY LIFT RATE WAS APPLIED TO EACH TOTAL WEIGHT OF 43,800 POUNDS, 15,290 POUNDS, AND 29,065 POUNDS.

WITH RESPECT TO THE DATA COVERING THE ELECTRICAL EQUIPMENT, THE CONTRACTING OFFICER STATED THAT, IN HIS JUDGMENT, THE ENTERPRISE BID CONTAINED AN ADEQUATE AMOUNT OF SPECIFICATIONS AND DESCRIPTION OF THE ELECTRICAL EQUIPMENT TO BE SUPPLIED TO ENABLE HIM TO EVALUATE THE BID.

SINCE THE ADMINISTRATIVE ACTION DOES NOT APPEAR TO HAVE BEEN ARBITRARY, OR IN VIOLATION OF ANY LAW OR REGULATION, OUR OFFICE WOULD NOT BE WARRANTED IN RAISING AN OBJECTION TO THE CONTRACT AS MADE.