B-156777, JUN. 29, 1965

B-156777, JUN. 29, 1965

TO CAMBEIS TRUCKING COMPANY:

FURTHER REFERENCE IS MADE TO YOUR TELEGRAM OF MAY 13, 1965, PROTESTING ON BEHALF OF YOURSELF AND MANGAM-KESTER TRANSFER CORPORATION, J. AND M. O- NEILL, INC., ROSENBLATT'S EXPRESS, STEAMSHIP TRUCKING, INC., UNITED STATES TRUCKING CORPORATION, AND WATERFRONT TRANSFER CORPORATION, AGAINST THE AWARD BY THE POST OFFICE DEPARTMENT OF ANY CONTRACT TO PRIDE TRANSPORTATION COMPANY, INC., FOR MAIL MESSENGER SERVICE ON MAIL MESSENGER ROUTES NOS. 0195, 0197, 0199, 0200 AND 0201 AT NEW YORK, NEW YORK.

WHILE YOUR PROTEST, AS SET FORTH IN YOUR TELEGRAM, IS STATED IN VERY GENERAL TERMS, IT APPEARS FROM THE REPORT WHICH WE HAVE RECEIVED FROM THE POST OFFICE DEPARTMENT IN THE MATTER THAT YOU CONTEND THAT MINIMUM TRIP RATES SPECIFIED BY BIDDERS SHOULD BE TAKEN INTO CONSIDERATION IN EVALUATING BIDS, AND THAT PRIDE TRANSPORTATION COMPANY, INC. (PRIDE), IS NOT QUALIFIED TO PERFORM THE SERVICES INVOLVED.

IN THE CASE OF EACH OF THE FIVE SEPARATE ADVERTISEMENTS SOLICITING BIDS TO BE OPENED MAY 10, 1965, FOR THE SERVICES INVOLVED, BIDDERS WERE FURNISHED WITH A BID FORM ON WHICH THEY WERE TO INDICATE THE UNIT PRICE PER "PIECE OR BAG" AND THE "MINIMUM TRIP RATE" FOR PROVIDING THE SERVICES DESCRIBED UNDER PART A AND PART B, RESPECTIVELY, OF THE BID SCHEDULE REFERRED TO HEREAFTER. THEY WERE ALSO FURNISHED WITH A TABULATION OF FIGURES, STATED TO BE BASED UPON THE POST OFFICE DEPARTMENT'S EXPERIENCE FOR THE YEAR 1964, FOR USE AS A GUIDE IN ESTIMATING THE TRAFFIC WHICH MIGHT BE ANTICIPATED ON THE PARTICULAR ROUTE DURING THE "COMING YEAR.' TYPICAL OF THE INFORMATION FURNISHED TO BIDDERS IN THIS RESPECT IS THE FOLLOWING TABLE APPEARING IN THE ADVERTISEMENT PERTAINING TO ROUTE 0195, INVOLVING MAIL MESSENGER SERVICE BETWEEN THE UNITED STATES LINES' PIERS AND MORGAN STATION AND/OR THE GENERAL POST OFFICE IN NEW YORK CITY:

TABLE

"ESTIMATED TRAFFIC

"PART A--- OUTBOUND MOVEMENTS:

ANNUAL VOLUME--- 902,500 SACKS OR PIECES.

ANNUAL NUMBER OF TRIPS--- 3,100 (BASED ON VEHICLES OF NOT LESS

THAN 900 CUBIC FEET CAPACITY).

ANNUAL NUMBER OF SHIPS CARRYING OUTBOUND MAIL 209

HIGHEST DAILY VOLUME 5150 PIECES

HIGHEST NUMBER OF DAILY TRIPS 18

"PART B--- INBOUND MOVEMENTS:

ANNUAL VOLUME--- * 227,900 SACKS OR PIECES.

ANNUAL NUMBER OF TRIPS--- * 725 (BASED ON VEHICLES OF NOT LESS

THAN 900 CUBIC FEET CAPACITY.)

* INCLUDES 2 TRIPS TO STATEN ISLAND PIERS AND 37 TRIPS TO PIER 29, BROOKLYN, N.Y. THE TOTAL VOLUME AT THESE PIERS WAS 14,000 SACKS.

ANNUAL NUMBER OF SHIPS CARRYING INBOUND MAIL 128

HIGHEST DAILY VOLUME 3750 PIECES

HIGHEST NUMBER OF DAILY TRIPS 11 "

BIDDERS WERE CAUTIONED THAT THE ABOVE INFORMATION WAS FOR INFORMATIONAL PURPOSES; THAT UNDER NO CIRCUMSTANCES SHOULD IT BE EXPECTED THAT THE SAME VOLUME WOULD DEVELOP DURING A LIKE PERIOD; AND THAT VOLUME COULD INCREASE OR DECREASE. ALSO, BIDDERS WERE CAUTIONED THAT SHIPS OF THE SHIPPING LINE INVOLVED MIGHT DOCK AT A PIER OTHER THAN THOSE LISTED, IN WHICH EVENT THE SUCCESSFUL BIDDER WOULD BE REQUIRED TO SERVICE THE SHIP AT "BID PRICE.'

WITH RESPECT TO SUBMISSION OF BIDS AND THE METHOD TO BE USED IN DETERMINING THE LOW BID, THE ADVERTISEMENTS STATED:

"SUBMISSION OF BIDS

"TO BE CONSIDERED, BIDDERS MUST BID ON A PER PIECE RATE, WITH A SPECIFIED MINIMUM TRIP RATE. PROPOSAL MUST SHOW A RATE FOR EACH PART (A AND B). MOREOVER, THE CONTRACTOR MUST HAVE SUFFICIENT EQUIPMENT TO HANDLE THE WHOLE OF THE MAILS AS OUTLINED IN THE ESTIMATED TRAFFIC SECTION. BIDS FOR THE TRANSPORTATION OF A PART OF THE VOLUME WILL BE REJECTED.

"METHOD OF DETERMINING LOW BID:

"THE TOTAL NUMBER OF PIECES OR SACKS SHOWN IN THE ESTIMATED TRAFFIC TABLE FOR EACH PART WILL BE MULTIPLIED BY THE PIECE RATE BID FOR EACH PART. THE AGGREGATE TOTAL WILL CONSTITUTE THE BID CE.'

THE ABSTRACT OF BIDS SUBMITTED IN RESPONSE TO THE ADVERTISEMENT PERTAINING TO ROUTE NO. 0195 SHOWS THAT PRIDE SUBMITTED A UNIT PRICE OF $0.15 PER PIECE OR BAG (EQUAL TO A TOTAL AMOUNT OF $135,375) AND MINIMUM TRIP RATE OF $60 FOR PERFORMING THE SERVICES DESIGNATED UNDER PART A OF THE BID SCHEDULE, AND A UNIT PRICE OF $0.235 PER PIECE OR BAG (EQUAL TO A TOTAL AMOUNT OF $53,556.50) AND MINIMUM TRIP RATE OF $47 FOR PERFORMING THE SERVICES DESIGNATED UNDER PART B THEREOF.

ON THE BASIS OF THE PER-PIECE-OR-BAG PRICES SHOWN ON ITS ORIGINAL BIDS FOR PERFORMING THE SERVICES UNDER PARTS A AND B OF THE BID SCHEDULES, PRIDE WAS THE LOW BIDDER WITH RESPECT NOT ONLY TO ROUTE 0195, BUT THE OTHER ROUTES AS WELL. HOWEVER, IF PRIDE'S MINIMUM TRIP RATES FOR THE SERVICES UNDER PARTS A AND B ARE MULTIPLIED BY THE ESTIMATED ANNUAL NUMBER OF TRIPS INDICATED FOR SERVICES IN THESE CATEGORIES WITH RESPECT TO ROUTE 0195, FOR INSTANCE, THE SUM OF THE TOTALS THUS DERIVED AMOUNTS TO $220,075, OR MORE THAN THE AGGREGATE AMOUNT OF WATERFRONT TRANSFER CORPORATION'S BID, AS CALCULATED ON A PER-PIECE-OR-BAG BASIS. THE SAID SUM ($220,075) ALSO EXCEEDS THE AGGREGATE AMOUNT WHICH IS DERIVED BY MULTIPLYING THE ANNUAL NUMBER OF TRIPS INDICATED FOR THE SERVICES UNDER PARTS A AND B BY THE MINIMUM TRIP RATES QUOTED BY WATERFRONT. THE SAME SITUATION, IN GENERAL, PREVAILS WITH RESPECT TO THE BIDS SUBMITTED FOR FURNISHING THE SERVICES AT THE OTHER ROUTES HERE INVOLVED, ALTHOUGH FIRMS OTHER THAN WATERFRONT (UNITED STATES TRUCKING CORPORATION ROSENBLATT'S EXPRESS AND WILLIAM T. O-NEIL, RESPECTIVELY) WERE THE SECOND LOW BIDDERS (ON THE BASIS OF PER-PIECE-OR-BAG RATES) WITH RESPECT TO THE OTHER ROUTES.

WHILE THE ADVERTISEMENT REQUIRED BIDDERS TO BID ON A PER-PIECE-OR BAG BASIS, SPECIFYING MINIMUM TRIP RATES, THEY WERE EXPRESSLY ADVISED THEREIN THAT THE TOTAL NUMBER OF PIECES OR SACKS SHOWN IN THE ESTIMATED TRAFFIC TABLE FOR PARTS A AND B OF THE SERVICES WOULD BE MULTIPLIED BY THE PIECE RATE BID FOR EACH PART, AND THE AGGREGATE TOTAL WOULD CONSTITUTE THE BID PRICE. BIDDERS WERE THUS FULLY ADVISED AS TO THE METHOD WHICH WOULD BE USED IN DETERMINING THE LOW BID.

IT APPEARS FROM THE POST OFFICE DEPARTMENT'S REPORT THAT BILLINGS TO ITS FIELD OFFICES FOR MAIL MESSENGER SERVICES ON A MINIMUM TRIP RATE BASIS IN THE PAST HAVE BEEN A RARE OCCURRENCE. DURING THE PERIOD MAY 23, 1964, TO MAY 26, 1965, FOR INSTANCE, MAIL MESSENGERS HAVING CONTRACTS ON THE NEW YORK PIERS WERE PAID ON THE BASIS OF A MINIMUM TRIP RATE, RATHER THAN A PER PIECE RATE, ONLY SIX TIMES. THE DEPARTMENT HAS ADVISED THAT LANGUAGE SIMILAR, IF NOT IDENTICAL, TO THAT CONTAINED IN THE SUBJECT ADVERTISEMENTS WITH REFERENCE TO THE MANNER IN WHICH THE LOW BIDS WOULD BE DETERMINED, SUPRA, HAS HERETOFORE BEEN USED BY ITS NEW YORK REGION IN ADVERTISING FOR MAIL MESSENGER SERVICES, AND NO QUESTION OF INTERPRETATION THEREOF HAS ARISEN. THE DEPARTMENT HAS FURTHER ADVISED THAT ON MAY 12, 1965, PRIDE REQUESTED ITS PERMISSION TO MODIFY ITS BID TO THE EXTENT OF REDUCING THE MINIMUM TRIP RATES WHICH IT HAD QUOTED TO $20.

CLEARLY, UNDER THE TERMS OF THE ADVERTISEMENTS THE LOW BIDS WERE REQUIRED TO BE DETERMINED ON THE BASIS OF THE PER-PIECE-OR-BAG RATES QUOTED, WITHOUT REGARD TO THE MINIMUM TRIP RATES QUOTED BY BIDDERS. MOREOVER, SINCE PRIDE'S BIDS WERE LOW ON THIS BASIS, THERE IS NO REASON (FROM THE STANDPOINT OF FAIRNESS TO OTHER BIDDERS) WHY PRIDE'S OFFER TO REDUCE ITS MINIMUM RATES TO THE EXTENT INDICATED SHOULD NOT BE ACCEPTED BY THE CONTRACTING OFFICER IN THE EVENT IT SHOULD BE AWARDED THE CONTRACT FOR THE ROUTES. SEE ALECK LEITMAN V. UNITED STATES (1945), 104 CT.CL. 324; 42 COMP. GEN. 170, 172.

THE CONTRACTING OFFICER HAS CONCLUDED THAT PRICE HAS THE CAPACITY TO PERFORM THE CONTRACT FOR ..END :