B-144891, APR. 26, 1961

B-144891, APR. 26, 1961

TO MR. R. O. VAUGHAN, VICE PRESIDENT, MARKETING, DRESSER ELECTRONICS, SIE DIVISION:

WE REFER TO YOUR LETTER OF JANUARY 18, 1961, PROTESTING AGAINST THE AWARD OF A CONTRACT TO ANOTHER BIDDER UNDER INVITATION FOR BIDS NO. FN 3G-32325- A-11-22-60/FN-3G-32325-A-11-15-60).

THE INVITATION WAS ISSUED OCTOBER 26, 1960, BY THE GENERAL SERVICES ADMINISTRATION, WASHINGTON, D.C., CALLING FOR TWO ITEMS OF SEMI TRAILERS FOR THE POST OFFICE DEPARTMENT. ITEM NO. 1 COVERED 80 SEMI TRAILERS, CARGO VAN, SINGLE AXLE 20 FEET LONG; AND ITEM NO. 2 COVERED 10 SEMI- TRAILERS, CARGO VAN, TANDEM AXLES, 35 FEET LONG. BIDS WERE SOLICITED ON THE BASIS OF "F.O.B. POINT OF ORIGIN" WITH THE FURTHER PROVISO THAT BIDS WOULD BE EVALUATED ON THE BASIS OF COST FOR EACH ITEM PLUS TRANSPORTATION COSTS TO A NUMBER OF DESIGNATED BASING POINTS. BY SPECIAL NOTICE NO. 1, ISSUED ON NOVEMBER 10, 1960, WHICH ALSO CHANGED THE INVITATION NUMBER, THE OPENING DATE WAS POSTPONED FROM NOVEMBER 15, 1960, TO NOVEMBER 22, 1960, AND THE FOLLOWING CHANGE WAS MADE:

"THE BID EVALUATION CLAUSE SHOWN ON PAGE 4 OF THE INVITATION TO BID HAS BEEN DELETED AND THE FOLLOWING INSERTED IN LIEU:

" "AWARD: BIDS FOR LESS THAN THE TOTAL QUANTITY OF EACH ITEM SPECIFIED HEREIN WILL NOT BE CONSIDERED FOR AWARD. EXCEPT FOR THE FIRST SENTENCE, ARTICLE 8 (C) OF STANDARD FORM 33 ENTITLED ,AWARD OF CONTRACT" WILL NOT APPLY. BIDS WILL BE EVALUATED BY ADDING THE TRANSPORTATION CHARGES TO THE BASING POINTS SHOWN BELOW TO THE TOTAL COST FOR THE TOTAL QUANTITY OF EACH ITEM. TRANSPORTATION COSTS SHALL BE BASED ON THE MOST ECONOMICAL RATES AVAILABLE TO THE GOVERNMENT VIA OVERLAND COMMON CARRIER.'"

ON NOVEMBER 15, 1960, SPECIAL NOTICE NO. 2 WAS ISSUED, CALLING FOR CERTAIN AMENDMENTS TO AND CLARIFICATION OF THE SPECIFICATIONS.

BID OPENING WAS HELD ON NOVEMBER 22, 1960. ON NOVEMBER 23, 1960, DRESSER ELECTRONICS, A BIDDER ON THE SUBJECT INVITATION, SENT A TELEGRAM, FOLLOWED BY A LETTER, POINTING OUT A MISTAKE IN ITS SUBMITTED BID. IT WAS INDICATED THAT THE UNIT PRICE OF $2,889 QUOTED IN ITS BID ON ITEM NO. 1 WAS IN ERROR, AND INCONSISTENT WITH ITS TOTAL PRICE SPECIFIED IN THE BID OF $221,120 FOR 80 UNITS; AND THAT THE INTENDED UNIT PRICE WAS $2,764, WHICH WOULD CONFORM WITH ITS TOTAL PRICE OF $221,120. SUPPLEMENTAL INFORMATION IN THE FORM OF COPIES OF ITS "PRODUCTION ENGINEERING COST ESTIMATE" AND ITS "COST ANALYSIS" WERE FURNISHED, INDICATING A UNIT BID PRICE OF $2,764.

AN AWARD WAS MADE TO KINGHAM TRAILER CO., INC., AS THE LOWEST BIDDER ON ITEM NO. 1. WE ARE INFORMED ALSO THAT KINGHAM TRAILER CO., INC., RECEIVED THE AWARD ON ITEM NO. 2. THE ADMINISTRATIVE OFFICE REPORTS THAT THE AWARDS WERE BASED ON THE FOLLOWING BID EVALUATION.

TABLE

"EVALUATION AND COMPARISON OF BIDS

ITEM 1

CO., INC. SIE DIVISION

KINGHAM TRAILER DRESSER ELECTRONS CASH DISCOUNT 1/10 OF 1 PERCENT-20 DA. NET UNITED PRICE BID $ 2,850.00 $ 2,889.00 TOTAL BID 80 TRAILERS 227,772.00 231,120.00 CASH DISCOUNT 227.77 NONE

----------- ------------ NET COST 227,544.23 231,120.00 TOTAL RAIL FREIGHT COST 14,357.40 22,132.00

----------- ------------ TOTAL NET DELIVERED COST $241,901.63 $253,252.00 ALLEGED INTENDED PRICE (DRESSER) 2,764.00 TOTAL ALLEGED INTENDED PRICE (80) 221,120.00 TOTAL RAIL FREIGHT COST

22,132.00

$243,252.00

ITEM 2 UNIT PRICE BID 4,600.00

4,520.00 TOTAL BID 10 TRAILERS 46,000.00 45,200.00 CASH DISCOUNT

46.00 NONE ----------

---------- NET COST

45,954.00 45,200.00 TOTAL RAIL FREIGHT COST 3,294.50 7,285.00

---------- ---------- TOTAL NET DELIVERED COST $49,248.50 $52,485.00

IN VIEW OF THE ABOVE EVALUATION, THE ADMINISTRATIVE OFFICE DID NOT CONSIDER IT NECESSARY TO RESOLVE THE QUESTION OF DRESSER'S MISTAKE IN BID. IT IS ADMINISTRATIVELY REPORTED THAT DRESSER FAILED TO EXECUTE AND RETURN SPECIAL NOTICE NOS. 1 AND 2, AND THAT SPECIAL NOTICE NO. 2 SETS FORTH CHANGES IN SPECIFICATION REQUIREMENTS AFFECTING THE PRICE, QUANTITY OR QUALITY OF THE REQUIRED WORK.

YOU SAY THAT YOUR BID SHOULD HAVE BEEN CONSIDERED ON THE BASIS OF $2,764 PER UNIT ON ITEM NO. 1. THE ADMINISTRATIVE REPORT SHOWS THAT EVEN IF YOUR BID IS EVALUATED ON THE BASIS OF $2,764 PER UNIT, UNDER THE EVALUATION CRITERIA SET OUT IN THE INVITATION THE BID OF KINGHAM TRAILER IS STILL LOWER THAN YOURS ON BOTH ITEM NOS. 1 AND 2 AFTER CONSIDERING COSTS OF TRANSPORTATION. SEE 10 COMP. GEN. 402. IN VIEW THEREOF, WE DO NOT SEE THE NEED TO CONSIDER YOUR ALLEGATION OF MISTAKE IN BID.

AS YOU PRESENT NO BASIS UPON WHICH WE MIGHT QUESTION THE AWARD MADE HERE TO A LOWER BIDDER, YOUR PROTEST IS DENIED.