B-150703, FEB. 15, 1963

B-150703, FEB. 15, 1963

TO MR. JACK BROOKS:

FURTHER REFERENCE IS MADE TO YOUR LETTER DATED JANUARY 24, 1963, PROTESTING THE INCLUSION IN INVITATION FOR BIDS NO. 600-660-63, ISSUED BY THE U.S. NAVY PURCHASING OFFICE, WASHINGTON, D.C., UNDER DATE OF JANUARY 10, 1963, AS AMENDED, OF PROVISIONS LIMITING BIDDERS THEREUNDER TO THOSE WHOSE PLANT FACILITIES ARE WITHIN A 50-MILE RADIUS OF THE ZERO MILESTONE NEAR THE WHITE HOUSE.

AS A BASIS FOR YOUR PROTEST YOU POINTED OUT THAT YOUR PLANT IS BEYOND THE SPECIFIED 50-MILE RADIUS AND THAT, THEREFORE, ALTHOUGH YOU HAVE THE NECESSARY FACILITIES, EXPERIENCE AND PERSONNEL TO MEET THE REQUIREMENTS OF THE INVITATION, YOU CANNOT SUBMIT A RESPONSIVE BID. YOU THEN EXPRESSED THE VIEW THAT THE INDICATED LIMITATION AMOUNTS TO A PREJUDGMENT OF THE ABILITY OF ANY SUPPLIER BEYOND THE 50-MILE RADIUS TO FURNISH THE REQUIRED SERVICES AND AS SUCH IS IMPROPER.

THE DEPARTMENT OF THE NAVY HAS FURNISHED A REPORT SHOWING THAT UNDER DATE OF NOVEMBER 1, 1962, THE U.S. NAVY PURCHASING OFFICE ISSUED INVITATION FOR BIDS NO. 600-315-63 FOR THE FURNISHING OF CERTAIN SPECIFIED LAUNDRY SERVICES; THAT YOUR COMPANY SUBMITTED THE LOWEST BID AND THAT UNDER DATE OF NOVEMBER 28, 1962, YOU WERE AWARDED CONTRACT NO. N600-59527 FOR A TOTAL ESTIMATED CONTRACT PRICE OF $96,459.52. WE WERE ADVISED THAT REPRESENTATIVES OF YOUR COMPANY ASSURED THE CONTRACTING OFFICER THAT THE LOCATION OF YOUR PLANT WOULD NOT PROHIBIT TIMELY AND SATISFACTORY PERFORMANCE. IT WAS REPORTED, HOWEVER, THAT PERFORMANCE UNDER YOUR CONTRACT WAS UNSATISFACTORY TO THE EXTENT THAT THE SAME WAS TERMINATED FOR DEFAULT, AND THAT THE LOCATION OF YOUR PLANT AND THE RELATIVE INACCESSIBILITY TO THE NAVAL ACTIVITY CUSTOMERS CONTRIBUTED SUBSTANTIALLY TO YOUR UNSATISFACTORY PERFORMANCE. IT IS THUS AT LEAST QUESTIONABLE WHETHER YOU COULD BE CONSIDERED ELIGIBLE FOR AWARD UNDER THE CURRENT INVITATION, WHICH IS ESSENTIALLY A REPROCUREMENT OF THE SERVICES AS TO WHICH YOU DEFAULTED. IN VIEW OF THE EXISTING SITUATION, THE CONTRACTING OFFICER ADMINISTRATIVELY DETERMINED TO LIMIT THE SOLICITATION ON THE REPLACEMENT CONTRACT TO FIRMS LOCATED WITHIN A 25-MILE RADIUS OF THE ZERO MILESTONE NEAR THE WHITE HOUSE, IT BEING STATED THAT AMONG THE ACTIVITIES TO BE SERVED UNDER THIS PROCUREMENT ARE THREE NAVAL DISPENSARIES USING HUNDREDS OF PIECES OF LINEN DAILY, AND THAT FAILURE TO MAINTAIN NORMAL, AS WELL AS ANTICIPATED EMERGENCY SERVICES FOR THESE DISPENSARIES WOULD HAVE SERIOUS CONSEQUENCES. UPON FURTHER CONSIDERATION THE 25-MILE LIMIT WAS EXTENDED BY AMENDMENT TO 50 MILES.

THE CONTRACTING OFFICER EXPRESSED THE OPINION THAT AT LEAST SIX BIDS MAY BE RECEIVED FROM FIRMS WITHIN THE 50-MILE RADIUS AND THAT BASED UPON THE NATURE OF THE PROCUREMENT WITH REQUIREMENT FOR PROMPT SERVICE AND PLANT ACCESSIBILITY IT IS BELIEVED THAT THE GEOGRAPHICAL MILEAGE LIMITATION IS A REASONABLE LIMITATION ON COMPETITION AND IS PROPER FOR THIS PROCUREMENT. CONSIDERING THE CIRCUMSTANCES REPORTED IN THIS CASE, WE ARE IN AGREEMENT WITH THE VIEWS EXPRESSED BY THE CONTRACTING OFFICER AND, THEREFORE, YOUR PROTEST IS HEREBY DENIED.