B-162881, MAR. 13, 1968

B-162881, MAR. 13, 1968

BIDS - EVALUATION - TRANSPORTATION CHARGES DECISION TO PROTESTING BIDDER, CESCO CONTAINER MFG. CORP., REAFFIRMING DECISION OF JAN. 9, 1968, DENYING THAT METHOD OF FREIGHT EVALUATION OF F.O.B. ORIGIN BID WAS IMPROPER.

TO BEEKMAN AND BOGUE:

REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 6, 1968, REQUESTING RECONSIDERATION OF OUR DECISION B-168281, JANUARY 9, 1968, WHEREIN WE DENIED THE PROTEST OF CESCO CONTAINER MFG. CORP. AGAINST THE METHOD OF FREIGHT EVALUATION OF THAT COMPANY'S F.O.B. ORIGIN BID FOR THE ATLANTA ARMY DEPOT REQUIREMENTS UNDER INVITATION FOR BIDS NO. DSA100-67-B 2224. THE INVITATION, ISSUED JUNE 14, 1967, BY THE DEFENSE SUPPLY AGENCY, DEFENSE PERSONNEL SUPPORT CENTER, SOLICITED BIDS FOR THE PURCHASE OF FOOTLOCKERS TO BE DELIVERED IN SPECIFIED QUANTITIES TO MECHANICSBURG, PENNSYLVANIA, AND ATLANTA, GEORGIA, AND OTHER DESTINATIONS STATED THEREIN.

WITH RESPECT TO THE PORTION OF THE PROCUREMENT FOR CONSIGNMENT TO THE ATLANTA ARMY DEPOT, OUR OFFICE WAS ADVISED ON DECEMBER 12, 1967, BY THE PROCUREMENT AGENCY THAT A SECTION 22 FREIGHT RATE WAS IN EXISTENCE AT THE TIME OF BID OPENING (TEA 3149B; SFA 2980-B) AND WAS PROPER FOR CONSIDERATION IN EVALUATING THE F.O.B. ORIGIN BID OF BERN KANE PRODUCTS, INC. FURTHER, WE WERE ADVISED THAT CESCO'S EVALUATED BID TO ATLANTA WOULD NOT BE LOW TO THAT DESTINATION. IN VIEW THEREOF, OUR DECISION WAS LIMITED TO A DISCUSSION OF THE MERITS OF YOUR PROTEST WITH REGARD TO THE AWARD OF A CONTRACT COVERING THE SHIPMENTS TO THE DEFENSE DEPOT, MECHANICSBURG.

YOUR REQUEST FOR RECONSIDERATION OF THE PORTION OF THE JANUARY 9 DECISION DEALING WITH THE ATLANTA AWARD IS PREDICATED UPON YOUR DISCOVERY OF THE EXISTENCE OF AN EMERGENCY 5-DAY PROPOSAL TO THE GENERAL FREIGHT TRAFFIC COMMITTEE, EASTERN RAILROADS, BY THE EASTERN REGION OF THE MILITARY TRAFFIC MANAGEMENT AND TERMINAL SERVICE (MTMTS), DATED JANUARY 18, 1968, FOR A SECTION 22 FREIGHT RATE FROM THE SITE OF THE BERN KANE FACILITY IN BROOKLYN, NEW YORK, TO ATLANTA, INDICATING THAT THE ONLY APPLICABLE FREIGHT RATE WAS A CLASS RATE OF $2.46 PER HUNDRED-WEIGHT. IT IS YOUR CONTENTION THAT THE JANUARY 18, 1968,SECTION 22 RATE PROPOSAL EVIDENCES THE FACT THAT, AT THE TIME OF BID OPENING, NO APPLICABLE SECTION 22 RATE EXISTED FOR EVALUATION OF THE BERN KANE BID AND, THEREFORE, IT WOULD APPEAR THAT CESCO IS THE LOW EVALUATED BIDDER FOR THAT PORTION OF THE PROCUREMENT.

IN RESPONSE TO YOUR REQUEST FOR RECONSIDERATION, THE PROCUREMENT AGENCY FURNISHED US WITH A LETTER FROM THE CHIEF, NEGOTIATIONS DIVISION, DIRECTORATE OF FREIGHT TRAFFIC, MTMTS, DATED FEBRUARY 26, 1968, WHICH READS AS FOLLOWS:

"1. BY WIRE DATED 9 JANUARY 1968, DCASR, NEW YORK, SUBMITTED A VOLUME MOVEMENT REPORT ON 1,458,000 POUNDS OF ARMY TRUNK LOCKERS TO MOVE FROM BERN KANE PRODUCTS, INC., BROOKLYN, NEW YORK, TO ATLANTA ARMY DEPOT, GEORGIA. THE REPORT RECEIVED IN THIS HEADQUARTERS ON 9 JANUARY 1968, INDICATED THAT THE SHIPPING DATE OF THE COMMODITY WAS TO BE 12 JANUARY 1968.

"2. IN THE REVIEW OF RATES THAT WOULD BE APPLICABLE TO THIS TRAFFIC, AND FACED WITH A VERY CLOSE SHIPPING DATE, IT WAS DETERMINED THAT A CLASS RATE OF 246 CENTS CWT., SUBJECT TO EX PARTE 256 INCREASE, WAS THE ONLY RATE SPECIFICALLY AVAILABLE. FURTHER RESEARCH OF COMMODITY TARIFFS REVEALED THAT RAIL CARRIERS WERE PROTECTING A RATE OF $1.78 CWT., WITH VARYING MINIMUM WEIGHTS PREDICATED ON THE LENGTH OF THE CAR USED, ON A COMMODITY DESCRIBED AS FURNITURE AND RELATED ITEMS, SOME OF WHICH COULD BE COMPARABLE TO TRUNK LOCKERS. ON THIS BASIS THE EASTERN AND SOUTHERN RAILROADS WERE REQUESTED TO OFFER THIS SAME BASIS OF RATES ON THE ABOVE GOVERNMENT SHIPMENT.

"3. WITHIN A FEW DAYS FOLLOWING THE SUBMISSION OF OUR REQUEST FOR THE ESTABLISHMENT OF THE ABOVE RATE, AND PRIOR TO ANY OFFICIAL RAILROAD ACTION, IT WAS LEARNED THAT THERE WAS PRESENTLY IN EFFECT A RATE OF $1.86 CWT. AVAILABLE ON THE COMMODITY TO BE SHIPPED, MADE APPLICABLE BY AN INTERMEDIATE APPLICATION FROM A POINT NAMED BEYOND BROOKLYN, NEW YORK. THE RAILROADS WERE IMMEDIATELY REQUESTED TO WITHDRAW OUR PROPOSAL.

"4. IN ALL OF THE ABOVE EVALUATION PROCESSES AND IN THE SUBSEQUENT REQUEST FOR THE ESTABLISHMENT OF THE $1.78 CWT. RATE, TECHNICIANS WERE NOT AWARE THAT A SOUTHERN FREIGHT ASSOCIATION SECTION 22 QUOTATION ADVICE A- 2980-B, ISSUED JOINTLY WITH EASTERN RAILROADS ON FREIGHT ALL KINDS, AND WHICH APPLIED A RATE OF $1.19 CWT., SUBJECT TO EX PARTE 256 INCREASES WAS AVAILABLE AT THAT TIME, ON THE TRAFFIC INVOLVED. A THOROUGH RECENT EXAMINATION OF THIS QUOTATION REVEALS THAT IT WAS ISSUED 26 JULY 1965, WITH AN EFFECTIVE DATE OF 2 APRIL 1965, AND HAS BEEN IN CONTINUOUS EFFECT SINCE THAT DATE.'

ACCORDINGLY, THE BERN KANE F.O.B. ORIGIN BID WAS PROPERLY EVALUATED AS THE LOWEST BID ON THE ATLANTA PORTION OF THE PROCUREMENT. WE THEREFORE FIND NO BASIS TO QUESTION THAT AWARD AND OUR PRIOR DECISION IS AFFIRMED.