Skip to main content

B-154370, JUN. 30, 1964

B-154370 Jun 30, 1964
Jump To:
Skip to Highlights

Highlights

TO BOGUE ELECTRIC MANUFACTURING COMPANY: REFERENCE IS MADE TO YOUR TELEGRAM OF JUNE 3. BIDS WERE TO BE EVALUATED ON THE BASIS OF THE LOWEST OVER-ALL COST TO THE GOVERNMENT TAKING INTO ACCOUNT FREIGHT AND OTHER COSTS AS SET OUT IN PARAGRAPH 20 OF AMENDMENT NO. 2 TO THE INVITATION. YOU CONTEND THAT THE BID OF INTERNATIONAL FERMONT SHOULD NOT BE CONSIDERED BECAUSE ITS BID AS READ AT THE BID OPENING WAS $800 EACH BUT THAT THIS PRICE WAS AMENDED BY A LATE TELEGRAM REDUCING THE UNIT PRICE BY $40 OR TO $760. 037 EACH OR TO $997 EACH (IF THE TELEGRAM WHICH REDUCED THE PRICE BY $40 IS TAKEN INTO CONSIDERATION).'. IS YOUR CONTENTION THAT NEITHER TELEGRAM SHOULD BE TAKEN INTO CONSIDERATION AND THAT INTERNATIONAL FERMONT SHOULD BE FORCED TO REMAIN WITH THEIR PROPOSAL OF $800 OR WITHDRAW ITS BID.

View Decision

B-154370, JUN. 30, 1964

TO BOGUE ELECTRIC MANUFACTURING COMPANY:

REFERENCE IS MADE TO YOUR TELEGRAM OF JUNE 3, 1964, AND YOUR LETTER OF THE SAME DATE, PROTESTING THE AWARD OF ANY CONTRACT TO EITHER THE INTERNATIONAL FERMONT DIVISION OF DYNAMICS CORPORATION OF AMERICA OR TO AMERICAN ELECTRONICS, INC., UNDER INVITATION FOR BIDS NO. AMC/T/-11 184-64 -AF-211-MYP ISSUED BY THE U.S. ARMY ENGINEER PROCUREMENT OFFICE, CHICAGO, ILLINOIS, ON MAY 11, 1964.

THE CITED INVITATION SOLICITED BIDS--- TO BE OPENED ON MAY 26, 1964, AT 11:30 A.M., CDST--- FOR FURNISHING 8,715 GENERATOR SETS CONFORMING TO CERTAIN SPECIFICATIONS. BIDS WERE TO BE EVALUATED ON THE BASIS OF THE LOWEST OVER-ALL COST TO THE GOVERNMENT TAKING INTO ACCOUNT FREIGHT AND OTHER COSTS AS SET OUT IN PARAGRAPH 20 OF AMENDMENT NO. 2 TO THE INVITATION.

YOU CONTEND THAT THE BID OF INTERNATIONAL FERMONT SHOULD NOT BE CONSIDERED BECAUSE ITS BID AS READ AT THE BID OPENING WAS $800 EACH BUT THAT THIS PRICE WAS AMENDED BY A LATE TELEGRAM REDUCING THE UNIT PRICE BY $40 OR TO $760. ALSO, THAT SEVERAL HOURS LATER ANOTHER TELEGRAM PEARED,"FURTHER AMENDING THE PRICE TO $1,037 EACH OR TO $997 EACH (IF THE TELEGRAM WHICH REDUCED THE PRICE BY $40 IS TAKEN INTO CONSIDERATION).' IS YOUR CONTENTION THAT NEITHER TELEGRAM SHOULD BE TAKEN INTO CONSIDERATION AND THAT INTERNATIONAL FERMONT SHOULD BE FORCED TO REMAIN WITH THEIR PROPOSAL OF $800 OR WITHDRAW ITS BID. YOU STATE THAT THIS LATTER FIGURE DOES NOT COVER THE MATERIAL COST. ALSO YOU STATE THAT INTERNATIONAL FERMONT IS "AN ASSEMBLER RATHER THAN A MANUFACTURER" AND IS RELYING ON SECURING CHANGES TO THE SPECIFICATIONS. AS TO THE BID OF AMERICAN ELECTRONICS, INC., YOU STATE THAT WHEN FREIGHT IS TAKEN INTO CONSIDERATION YOUR BID WILL BE LOWER THAN ITS BID.

PARAGRAPH 2 (A) OF THE TERMS AND CONDITIONS APPEARING ON THE REVERSE SIDE OF THE FIRST PAGE OF THE INVITATION (STANDARD FORM 30) PROVIDES THAT BIDS MAY BE MODIFIED BY TELEGRAPHIC NOTICE PROVIDED SUCH NOTICE IS RECEIVED PRIOR TO THE TIME SET FOR OPENING OF BIDS. THE CONTRACTING OFFICER REPORTS THAT THE FIRST TELEGRAM SENT BY INTERNATIONAL FERMONT WAS RECEIVED BY HIS OFFICE AT 9:44 A.M., MAY 26, 1944, ONE HOUR AND 46 MINUTES PRIOR TO TIME SET FOR BID OPENING. THIS TELEGRAM ACKNOWLEDGED RECEIPT OF AMENDMENT NO. 2 TO THE INVITATION AND INCREASED THE UNIT PRICE FROM $800 TO $1,037. THE SECOND TELEGRAM WAS RECEIVED BY THE CONTRACTING OFFICE AT 11:32 A.M., MAY 26, 1964, OR TWO MINUTES AFTER TIME SET FOR BID OPENING. THIS TELEGRAM OFFERED A $40 PRICE REDUCTION FOR EACH UNIT. IN REGARD TO THIS MATTER THE CONTRACTING OFFICER STATES THAT:

"WITH RESPECT TO THE TELEGRAM RECEIVED AFTER BID OPENING, OFFERING A $40.00 PRICE REDUCTION, THE FOLLOWING DETERMINATION HAS BEEN MADE:

"INTERNATIONAL FERMONT'S BID OF $1,037.00 WILL BE USED FOR EVALUATION PURPOSE. THE $40.00 PRICE REDUCTION WILL BE ACCEPTED PROVIDED THIS BID IS OTHERWISE ACCEPTABLE AS SET FORTH IN PARAGRAPH 2 305 (A) OF THE ARMED SERVICE PROCUREMENT REGULATIONS, AND PARAGRAPH 2, SPECIAL TERMS AND CONDITIONS OF THE IFB.'"

THE REFERRED-TO PARAGRAPH 2 OF THE SPECIAL TERMS AND CONDITIONS OF THE INVITATION PROVIDES THAT A MODIFICATION WHICH MAKES THE TERMS OF THE OTHERWISE SUCCESSFUL BID MORE FAVORABLE TO THE GOVERNMENT WILL BE CONSIDERED AT ANY TIME IT IS RECEIVED AND MAY THEREAFTER BE ACCEPTED.

BASED ON THE STATEMENT OF THE CONTRACTING OFFICER AND THE EVIDENCE SUBMITTED WITH HIS STATEMENT, WE AGREE WITH HIS DETERMINATION TO EVALUATE THE BID OF INTERNATIONAL FERMONT ON A UNIT PRICE OF $1,037 AND TO ACCEPT THE $40 UNIT PRICE REDUCTION ONLY IN THE EVENT THAT SAID BID IS FOUND TO BE OTHERWISE ACCEPTABLE.

WITH REGARD TO YOUR CONTENTION THAT INTERNATIONAL FERMONT IS ONLY AN "ASSEMBLER" AND NOT A MANUFACTURER, THE ADMINISTRATIVE OFFICE REPORTS THAT IT PREVIOUSLY HAS MANUFACTURED ENGINE DRIVEN GENERATOR SETS FOR THE ARMY AND THESE SETS CONTAINED ENGINES, GENERATORS AND OTHER COMPONENTS FROM SUBCONTRACTORS. THEREFORE HE FINDS NO BASIS FOR QUESTIONING ITS ABILITY TO PERFORM AS A MANUFACTURER.

AS TO YOUR CONTENTION THAT AMERICAN ELECTRONICS IS NOT THE LOW BIDDER WHEN FREIGHT COSTS ARE CONSIDERED, THE CONTRACTING OFFICER STATES THAT NO FINAL DECISION IN REGARD TO ITS BID HAS BEEN MADE AND THEREFORE THE MATTER IS NOT FOR CONSIDERATION AT THIS TIME.

GAO Contacts

Office of Public Affairs