B-138796, DEC. 31, 1959

B-138796, DEC. 31, 1959

TO SABRE METAL PRODUCTS, INC.:

FURTHER REFERENCE IS MADE TO YOUR PROTEST RELATIVE TO THE EVALUATION OF THE BIDS RECEIVED IN RESPONSE TO INVITATION FOR BIDS NO. DA-ENG-11-184-59- A-316 ISSUED BY THE UNITED STATES ARMY ENGINEER PROCUREMENT OFFICE, CHICAGO, ILLINOIS.

THE INVITATION REQUESTED BIDS FOR FURNISHING 31 SELF-PROPELLED, MAGNETIC, ROAD SWEEPERS, F.O.B. CARS, ORIGIN, LOADED, BLOCKED AND BRACED. THE INVITATION PROVIDED THAT FOR THE PURPOSE OF EVALUATING THE BIDS RECEIVED, THE FINAL DESTINATIONS WOULD BE CONSIDERED AS A POINT SPECIFIED THEREIN. THE INVITATION REQUESTED BIDDERS TO STATE THE POINT OF SHIPMENT AND TO SPECIFY A GUARANTEED SHIPPING WEIGHT. WITH RESPECT TO THE GUARANTEED SHIPPING WEIGHT THE INVITATION PROVIDED AS FOLLOWS:

"SHIPPING DATA GUARANTEE--- BIDDER REPRESENTS THAT THE SHIPPING DATE SET FORTH HEREIN IS CORRECT AND AGREES THAT IF HIS BID IS ACCEPTED AND AWARD HEREUNDER IS MADE ON AN F.O.B. ORIGIN BASIS THAT HE WILL BE LIABLE TO AND WILL REIMBURSE THE GOVERNMENT FOR ANY INCREASED TRANSPORTATION COSTS THAT THE GOVERNMENT IS REQUIRED TO PAY AS THE RESULT OF THE ACTUAL SHIPPING WEIGHT OF THE ITEM BEING MORE THAN THAT AS SET FORTH HEREIN BY BIDDER.'

TWO BIDS WERE RECEIVED IN RESPONSE TO THE INVITATION. SABRE METAL PRODUCTS, INC., QUOTED A TOTAL PRICE OF $230,545 FOR THE 31 SWEEPERS, F.O.B. LYONS, ILLINOIS, LESS A DISCOUNT OF 1/2 OF 1 PERCENT FOR PAYMENT WITHIN 20 CALENDAR DAYS AND A SHIPPING WEIGHT OF 10,000 POUNDS PER VEHICLE WAS GUARANTEED. CONSOLIDATED DIESEL ELECTRIC CORPORATION QUOTED A TOTAL PRICE OF $231,750, F.O.B. STAMFORD, CONNECTICUT, LESS A DISCOUNT OF 1/2 OF 1 PERCENT FOR PAYMENT WITHIN 20 CALENDAR DAYS, AND A SHIPPING WEIGHT OF 8,300 POUNDS PER VEHICLE WAS GUARANTEED.

UPON EVALUATION OF THE BIDS TO INCLUDE THE COST OF FREIGHT ON THE BASIS OF THE GUARANTEED SHIPPING WEIGHT SPECIFIED LESS DISCOUNT, IT WAS DETERMINED THAT THE BID OF CONSOLIDATED DIESEL ELECTRIC CORPORATION RESULTED IN THE LOWEST TOTAL COST TO THE GOVERNMENT AND, THEREFORE, THE AWARD WAS MADE TO THAT CORPORATION.

YOU PROTEST THE AWARD ON THE BASIS THAT THE SHIPPING WEIGHT OF 8,300 POUNDS PER VEHICLE GUARANTEED BY CONSOLIDATED DIESEL WAS NOT REALISTIC AND QUESTION SOME OF THE FREIGHT RATES USED IN EVALUATION OF THE BIDS. IT IS STATED THAT THE WEIGHT OF YOUR UNIT MAY BE ONLY 9,000 POUNDS AND YOU SUGGESTED, BUT APPARENTLY NOT SERIOUSLY, THAT YOUR GUARANTEED SHIPPING WEIGHT SHOULD BE REDUCED TO 9,100 POUNDS PER UNIT.

THE PROVISION IN THE INVITATION REQUIRING BIDDERS TO STATE A GUARANTEED SHIPPING WEIGHT IS FOR THE PURPOSE OF FIXING EXACTLY THE TOTAL MAXIMUM COST, INCLUDING FREIGHT, OF THE EQUIPMENT TO THE GOVERNMENT. CONSISTENTLY HAS BEEN HELD THAT THE GUARANTEED SHIPPING WEIGHT IS AN ESSENTIAL ELEMENT OF THE BID AND IS MATERIAL IN DETERMINING THE TOTAL AMOUNT THE GOVERNMENT WILL BE REQUIRED TO PAY FOR THE MATERIALS AND, THEREFORE, THE WEIGHT SPECIFIED IN THE BID MAY NOT BE CHANGED AFTER THE BIDS HAVE BEEN OPENED. SEE 30 COMP. GEN. 179; 38 ID. 819.

IT IS REPORTED THAT THE 8,300 POUNDS GUARANTEED BY CONSOLIDATED DIESEL WHEN COMPARED WITH SIMILAR UNITS, BUT WITHOUT CABS, PREVIOUSLY FURNISHED BY THAT COMPANY, WAS IN FACT A REALISTIC SHIPPING WEIGHT OF UNITS WITH CABS. IN ANY EVENT THE 8,300 POUNDS GUARANTEED BY CONSOLIDATED DIESEL WAS THE MAXIMUM WEIGHT FOR WHICH THE GOVERNMENT IS REQUIRED TO PAY FREIGHT AND ANY COST INCURRED BY THE GOVERNMENT DUE TO EXCESS WEIGHT IS CHARGEABLE TO THE CONTRACTOR.

THE QUESTION AS TO THE USE OF PROPER FREIGHT RATES IN THE EVALUATION OF THE BIDS WAS REFERRED TO THE TRANSPORATION DIVISION OF THIS OFFICE FOR CHECKING. AS YOU ARE AWARE THEY FOUND IT NECESSARY IN ORDER TO DETERMINE THE PROPER CHANGES TO OBTAIN THE ACTUAL LENGTH OF THE TRACTORS TO BE USED IN THE MANUFACTURE OF THE SWEEPERS FROM YOU AND CONSOLIDATED DIESEL. WHILE THEY DO NOT COMPLETELY AGREE WITH THE FREIGHT RATES USED IN EVALUATING THE BIDS, THE RATES FOUND APPLICABLE STILL RESULT IN MAKING THE BID OF CONSOLIDATED DIESEL THE LOWEST TOTAL COST TO THE GOVERNMENT. THE RATES WHICH OUR TRANSPORTATION DIVISION DETERMINED TO BE APPLICABLE ARE AS FOLLOWS:

TABLE

MINIMUM LYONS, ILLINOIS RATE WEIGHT AUTHORITY --------------- ---- ------ - --------- NEW YORK, N.Y. 2.26 30,000 CLASS 50, CTR E-1009, I.C.C. 4487 OKLAHOMA CITY, OKLA. 1.93 24,000 CLASS 45, SWL SW/W 1006, I.C.C.

3999 MOBILE, ALA. 2.00 30,000 CLASS 45, IFA I/S 1003-A, I.C.C.

797 SAN FRANCISCO, CAL. 4.08 40,000 COMMODITY RATE, ITEM 9165-D,

TCFB 1-G, I.C.C. 1588, HIGHEST

RATED ARTICLE IN THE

"COMBINATION" PER ITEM 535 OF

THE SAME TARIFF SEATTLE, WASH. 4.08 40,000 SAME RATES AND AUTHORITY AS

PLUS SAN FRANCISCO, CALIFORNIA, BASED

16.84 ON TWO CARS, WITH STOP-OFF AT

SEATTLE, WASHINGTON STAMFORD, CONNECTICUT --------------------- NEW YORK, N.Y. .72 30,000 CLASS 50, CTR E-1009, I.C.C. 4487 OKLAHOMA CITY, OKLA. 3.01 24,000 CLASS 45, SWL S/W 1005, I.C.C.

3998 MOBILE, ALA. 2.53 30,000 COMMODITY RATE, ITEM 9165-D,

TCFB 1-G, I.C.C. 1588, HIGHEST

RATED ARTICLE IN THE

"COMBINATION" PER ITEM 535

OF THE SAME TARIFF SEATTLE, WASH. 5.79 30,000 SAME RATES AND AUTHORITY AS SAN

PLUS FRANCISCO, CALIFORNIA, BASED

16.84 ON TWO CARS, WITH STOP-OFF AT

SEATTLE, WASHINGTON

BASED ON SUCH RATES THE TOTAL EVALUATION OF CONSOLIDATED DIESEL'S BID IS $237,758.54--- $231,750 FOR THE SWEEPERS LESS DISCOUNT ( 1/2 OF 1 PERCENT) OF $1,158.75 PLUS $7,167.29 FOR FREIGHT. THE EVALUATION OF YOUR BID WOULD HAVE BEEN $238,112.48--- $230,545 FOR THE SWEEPERS LESS DISCOUNT ( 1/4 OF 1 PERCENT) OF $576.36 PLUS $8,143.84 FOR FREIGHT.

IF IN FACT THE COST TO THE GOVERNMENT WOULD HAVE BEEN LOWER UNDER YOUR BID BECAUSE OF YOUR FAILURE TO GUARANTEE A REALISTIC SHIPPING WEIGHT, IT IS UNFORTUNATE, BUT UNDER THE ESTABLISHED RULES OF COMPETITIVE ADVERTISED PROCUREMENT YOUR BID WAS REQUIRED TO BE EVALUATED ON THE BASIS STATED IN THE INVITATION.

SINCE THE BID OF THE CONSOLIDATED DIESEL AS EVALUATED PURSUANT TO THE TERMS OF THE INVITATION RESULTS IN THE LOWEST TOTAL, THERE IS NO BASIS UPON WHICH WE COULD QUESTION THE AWARD MADE BY THE DEPARTMENT OF THE ARMY.