B-142126, APR. 5, 1960

B-142126, APR. 5, 1960

TO HUGO NEU CORPORATION:

WE REFER AGAIN TO YOUR TELEGRAM OF FEBRUARY 26, 1960, PROTESTING AGAINST THE AWARD OF A CONTRACT TO ANOTHER BIDDER FOR ITEM 98 UNDER SPOT BID SALE NO. 38-101-S-60-3, HELD BY THE CHARLESTON TRANSPORTATION DEPOT, ON FEBRUARY 25, 1960.

WE HAVE BEEN ADVISED BY REPORT OF MARCH 23, 1960, FROM THE DEPARTMENT OF THE ARMY THAT THE HIGH BID IN THE AMOUNT OF $102,222.20, AND THE SECOND HIGH BID IN THE AMOUNT OF $82,222.22, WERE REJECTED FOR FAILURE OF THE BIDDERS TO PROVIDE THE 20 PERCENT DEPOSIT REQUIRED AS A CONDITION PRECEDENT UNDER THE TERMS OF THE INVITATION TO A VALID AWARD, TO BE FURNISHED BEFORE THE CLOSE OF BUSINESS ON THE DAY OF THE SALE. WE ARE ADVISED FURTHER THAT THE CONTRACTING OFFICER DETERMINED THAT ACCEPTANCE OF ANY OTHER BID WOULD NOT HAVE RESULTED IN A REASONABLE RETURN TO THE GOVERNMENT. PURSUANT TO SUCH DETERMINATION, ITEM 98, A REVOLVING FLOATING CRANE, WAS WITHDRAWN FROM THE SALE AND WILL BE READVERTISED AT SOME FUTURE DATE.

SINCE THE ACTION, AWARD OF ITEM 98 TO A BIDDER NOT MEETING THE DEPOSIT REQUIREMENT DID NOT, IN FACT, TAKE PLACE, IT DOES NOT APPEAR NECESSARY TO TAKE ANY FURTHER ACTION WITH RESPECT THERETO. HOWEVER, IN VIEW OF YOUR TELEGRAM, IT SEEMS APPROPRIATE TO ADVISE YOU THAT THE DEPOSIT INVOLVED IN THE MATTER IS NOT, STRICTLY SPEAKING, A BID DEPOSIT, NOR, EXCEPT IN A FEW INSTANCES, DOES THE LAW REQUIRE SUBMISSION OF A BID DEPOSIT. SEE IN THIS CONNECTION OUR LETTER B-141226, JANUARY 13, 1960, COPY ENCLOSED.