B-149243, JUL. 26, 1962

B-149243, JUL. 26, 1962

TO GRAY COMPANY, INC.:

BY TELEGRAM DATED JUNE 21, 1962, YOU PROTESTED AGAINST THE AWARD OF A CONTRACT UNDER INVITATION FOR BIDS NO. 600-1068-62 TO ANY BIDDER OTHER THAN YOUR FIRM.

THE INVITATION DATED MAY 25, 1962, REQUESTED BIDS, AS THE SECOND STEP OF A 2-STEP PROCUREMENT, ON 112 HIGH PRESSURE AIRCRAFT CLEANING MACHINES. ADDENDUM NO. 1 DATED JUNE 1, 1962, BIDDERS WERE ADVISED, IN EFFECT, TO QUOTE PRICES FOR EACH NAMED DESTINATION ON BOTH THE ORIGIN AND DESTINATION BASES. NO PROVISION WAS CONTAINED THEREIN WITH RESPECT TO THE CONSEQUENCES OF A FAILURE TO BID ON BOTH BASES. ATTACHED TO AND MADE A PART OF THE INVITATION WAS A "TRANSPORTATION DATA SHEET" WHICH WAS REQUIRED TO BE COMPLETED BY BIDDERS TO AID IN THE DETERMINATION OF TRANSPORTATION COST TO THE GOVERNMENT.

FOUR BIDS WERE RECEIVED AND OPENED ON JUNE 19, 1962, AND RANGED FROM A LOW BID OF $209,104 TO $335,095.60 ON AN F.O.B. ORIGIN BASIS AND FROM $238,542.44 TO $340,904 ON A DESTINATION BASIS. ALL BIDDERS EXCEPT THE STEWART-WARNER CORPORATION SUBMITTED BOTH ORIGIN AND DESTINATION BIDS. THAT CORPORATION SUBMITTED ONLY AN ORIGIN BID WHICH WAS THE LOWEST RECEIVED. THE NEXT LOWEST ORIGIN AND DESTINATION BIDS WERE RECEIVED FROM THE ALEMITE COMPANY, AND YOUR FIRM SUBMITTED THE THIRD LOWEST ORIGIN AND DESTINATION BIDS. SINCE THE BIDS OF ALEMITE WERE DETERMINED BY THE CONTRACTING OFFICER TO BE NONRESPONSIVE, ITS BIDS ARE NOT FOR CONSIDERATION IN MAKING AN AWARD UNDER THE INVITATION.

IT IS CONTENDED BY YOUR FIRM THAT THE LOW ORIGIN BID OF STEWART WARNER IS NONRESPONSIVE SINCE THE INVITATION, AS AMENDED, REQUESTED BIDS ON BOTH THE ORIGIN AND DESTINATION BASES.

IN OUR DECISION AT 30 COMP. GEN. 179, WE HELD THAT THE ESSENTIAL DETERMINATION TO BE MADE IN BID DEVIATION CASES IS WHETHER THE DEVIATION INVOLVED GOES TO THE SUBSTANCE OF THE BID SO AS TO AFFECT EITHER THE PRICE, QUANTITY, OR QUALITY OF THE ARTICLES OFFERED AND THEREFORE WHETHER WAIVER OF THE DEVIATION WOULD BE PREJUDICIAL TO THE RIGHTS OF OTHER BIDDERS.

THE ADVERTISED SPECIFICATIONS IN THIS CASE ADVISED PROSPECTIVE BIDDERS OF THE DESTINATIONS, AND THEY WERE INFORMED THAT THE EVALUATION OF BIDS WOULD BE ON THE BASIS OF BID PRICE PLUS GOVERNMENT TRANSPORTATION COST FROM POINT OF ORIGIN. IN SUBSTANCE, THEREFORE, THE INVITATION SPELLED OUT CLEARLY THAT DELIVERED PRICES WERE TO BE USED IN THE EVALUATION OF THE BIDS. WHILE IT IS TRUE THAT IT WAS INTENDED THAT BIDDERS WERE TO BID ON BOTH ORIGIN AND DESTINATION BASES, IT IS NO LESS TRUE THAT THE GOVERNMENT'S PRIMARY CONCERN ON THIS PHASE OF THE PROCUREMENT WAS TO OBTAIN THE BEST POSSIBLE DELIVERED PRICE. SEE ASPR 1-1305.2 PROVIDING FOR THE EVALUATION OF ORIGIN OR DESTINATION BIDS ON THE BASIS OF THE OVER-ALL COST TO THE GOVERNMENT.

WE NOTE THAT BIDS UNDER THIS SOLICITATION WERE EVALUATED ON THE BASIS OF ORIGIN BID PRICES PLUS THE COST OF TRANSPORTATION TO THE NAMED DESTINATIONS ON GOVERNMENT BILLS OF LADING. UNDER SUCH EVALUATION, THE FOLLOWING RESULT WAS OBTAINED BY THE PROCUREMENT OFFICE:

CHART

NAME OF BIDDER ORIGIN BID DESTINATION BID

GRAY CO., INC. $263,461.92 $269,239.94

STEWART-WARNER CO. $209,104.00

SUN ELECTRIC CO. 335,095.60 340,904.00

NAME OF BIDDER ORIGIN BID

STEWART-WARNER CO. 209,104.00 NO DESTINATION BID

COST OF TRANSPORTATION

ON GBL 3,842.86

TOTAL $212,946.86

GRAY CO., INC. $263,461.92

COST OF TRANSPORTATION

ON GBL 5,215.00

TOTAL $268,676.92

ACCORDINGLY, SINCE THE ORIGIN BID OF STEWART-WARNER IS LOWER THAN YOUR FIRM'S ORIGIN BID AND, AS EVALUATED, LOWER ON A DESTINATION BASIS, WE DO NOT FEEL THAT CONSIDERATION OF STEWART-WARNER'S LOW ORIGIN BID WOULD BE PREJUDICIAL TO YOUR FIRM OR OTHERWISE CONTRARY TO THE COMPETITIVE BIDDING SYSTEM. WE THEREFORE MUST DENY YOUR PROTEST.