B-160935, MAR. 6, 1968

B-160935, MAR. 6, 1968

BIDS - NEGOTIATION - CANCELLATION DECISION TO CONRAC CORP., DENYING PROTEST AGAINST FAILURE OF NAVY AVIATION SUPPLY OFFICE TO CONSIDER UNSOLICITED PRIOR REDUCTION MODIFICATION WHICH WOULD HAVE MADE SECOND LOW OFFEROR LOW AND TO CANCELLATION OF PROCUREMENT. SINCE CONTRACT WITH LOW OFFEROR HAS BEEN TERMINATED FOR DEFAULT AND REQUEST FOR PROPOSALS HAVE BEEN CANCELLED BECAUSE PROCURING OFFICE NO LONGER HAS COGNIZANCE OVER PARTICULAR PROCUREMENT AND NO FUNDS FOR AWARD, THERE IS NO BASIS FOR OBJECTION TO THE CANCELLATION OF REQUEST.

TO CONRAC CORPORATION:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 22, 1967, PROTESTING AGAINST THE AWARD OF A CONTRACT TO ANY COMPANY OTHER THAN YOUR OWN UNDER REQUEST FOR PROPOSALS (RFP) NO. N00383-68-R-0001 ISSUED JULY 14, 1967, BY THE NAVY AVIATION SUPPLY OFFICE (ASO), PHILADELPHIA, PENNSYLVANIA.

THE RFP, AS AMENDED, REQUESTED PROPOSALS FOR THE FURNISHING OF ACCELEROMETER COUNTING GROUP CONSISTING OF 2,508 EACH INDICATORS AND VARIOUS QUANTITIES OF FIVE TYPES OF TRANSDUCERS FOR A TOTAL OF 2,353 EACH TRANSDUCERS. THREE PROPOSALS WERE RECEIVED AND UMC ELECTRONICS WAS THE LOW OFFEROR, WITH AERODYNE CONTROLS CORPORATION SECOND AND YOUR COMPANY THIRD. BECAUSE THE PROPOSALS INITIALLY SUBMITTED WERE BASED ON VARYING PROVISIONS WITH RESPECT TO LIQUIDATED DAMAGES AND DELIVERY, THE GOVERNMENT, TO INSURE THAT THE THREE OFFERORS WERE PLACED ON AN EQUAL BASIS FOR EVALUATION, MADE A RESOLICITATION BY WIRE DATED SEPTEMBER 13, 1967. THE RESOLICITATION CONTAINED A CLOSING DATE OF SEPTEMBER 18, SUBSEQUENTLY EXTENDED TO SEPTEMBER 20, 1967, AND REQUESTED QUOTATIONS ON VARIOUS ALTERNATIVES. YOUR COMPANY SUBMITTED THE HIGHEST OFFER; HOWEVER, ON OCTOBER 17, 1967, YOU SUBMITTED A LATE UNSOLICITED MODIFICATION TO YOUR PROPOSAL REVISING THE PRICE DOWNWARD.

IN YOUR LETTER OF NOVEMBER 22, 1967, YOU STATE THAT THE UNSOLICITED MODIFICATION TO YOUR PROPOSAL MADE YOU THE LOWEST OFFEROR AND, THEREFORE, A CONTRACT SHOULD BE AWARDED TO YOU. YOU STATE, HOWEVER, THAT THE GOVERNMENT IS NOT CONTEMPLATING CONTRACTING UNDER THE INSTANT RFP BECAUSE OF THE PRESENT STATUS OF CONTRACT NO. N00383-67-C-0086 AWARDED ON DECEMBER 1, 1966, TO UMC FOR FURNISHING ACCELEROMETER COUNTING GROUPS. YOU POINT OUT THAT AT THE TIME PROPOSALS WERE SOLICITED FOR THAT CONTRACT YOU INDICATED TO THE GOVERNMENT THAT THE SPECIFICATIONS COULD NOT BE MET AND THAT SUBSEQUENT EVENTS HAVE PROVEN YOU TO BE RIGHT. YOU FURTHER POINT OUT THAT UMC IS IN DEFAULT UNDER THAT CONTRACT AND THAT AN AGREEMENT HAS BEEN REACHED BETWEEN ASO AND NAVAL AIR SYSTEMS COMMAND THAT WILL ALLOW ASO TO ISSUE A "SHOW CAUSE" LETTER TO UMC KNOWING FULL WELL THAT UMC WILL RESPOND WITH A PROPOSAL TO BUILD THE EQUIPMENT TO THE NEW SPECIFICATION, MIL-A- 22145B/AS), FOR WHICH ASO WILL NEGOTIATE A CHANGE ORDER TO THE EXISTING CONTRACT. YOU CONTEND THAT THIS WILL RESULT IN THE TERMINATION OF A DEFAULTED CONTRACT AND THE AWARD TO UMC OF A DIFFERENT CONTRACT WITHOUT COMPETITION.

WE HAVE BEEN ADVISED BY THE NAVAL SUPPLY SYSTEMS COMMAND THAT CONTRACT NO. N00383-67-C-0086 WITH UMC HAS BEEN TERMINATED FOR DEFAULT.

IN ADDITION, WE HAVE BEEN ADVISED THAT THE AVIATION SUPPLY OFFICE NO LONGER HAS COGNIZANCE OVER THE ACCELEROMETER COUNTING GROUP. IN VIEW THEREOF, NO FUNDS ARE NOW AVAILABLE FOR MAKING AN AWARD UNDER THE SUBJECT REQUEST FOR PROPOSALS AND, CONSEQUENTLY, THE RFP WAS CANCELED. IN VIEW OF THE FOREGOING, THERE APPEARS NO LEGAL BASIS ON WHICH WE COULD OBJECT TO THE CANCELLATION OF THE REQUEST FOR PROPOSALS.

FOR YOUR INFORMATION, WE HAVE BEEN INFORMED THAT IT IS EXPECTED THAT A NEW PROCUREMENT FOR THE MATERIAL WILL BE INITIATED IN THE NEAR FUTURE.