B-162171, SEP. 26, 1967

B-162171, SEP. 26, 1967

BIDDERS - UNSUCCESSFUL - NOTICE DECISION TO SECRETARY OF TRANSPORTATION IN CONNECTION WITH DECISION CONCERNING PROTEST TO C-E-I-R, INC. FAILURE OF CONTRACTING OFFICER TO NOTIFY LOW OFFEROR OF REASONS FOR REJECTION OF PROPOSAL FOR COST REIMBURSEMENT TYPE CONTRACT IS CALLED TO ATTENTION OF PROCURING AGENCY SINCE UNDER FPR 1-3.103 (B) UNSUCCESSFUL OFFERORS ARE REQUIRED TO BE FURNISHED WITH REASONS FOR REJECTION. ADDITIONALLY PROPER CONSIDERATION OF THIS TYPE OF BID MAY REQUIRE EXAMINATION OF SPECIFIC BASIS ON WHICH EACH MEMBER OF THE EVALUATION TEAM APPLIED EVALUATION CRITERIA AND THEREFORE, PROCURING AGENCY SHOULD REVIEW PROCEDURES TO ASSURE ADEQUATE RECORDS FOR SUCH PURPOSE.

TO MR. SECRETARY:

REFERENCE IS MADE TO A LETTER DATED SEPTEMBER 11, 1967, FROM THE FEDERAL HIGHWAY ADMINISTRATOR, FURNISHING A REPORT ON THE PROTEST OF C E-I-R INC., AGAINST THE AWARD MADE UNDER REQUEST FOR PROPOSALS NO. 135, ISSUED ON MAY 3, 1967, BY THE FEDERAL HIGHWAY ADMINISTRATION.

ENCLOSED IS A COPY OF OUR LETTER OF TODAY DENYING THE CORPORATION'S PROTEST.

PLEASE NOTE THAT THIS PROTEST ALLEGES FAILURE ON THE PART OF THE CONTRACTING OFFICER TO SUPPLY A CLEARLY DEFINED BASIS FOR MAKING THE AWARD TO A HIGHER BIDDER. PARAGRAPH 1-3.103 (B) OF THE FEDERAL PROCUREMENT REGULATIONS REQUIRES THAT, UPON REQUEST, UNSUCCESSFUL OFFERORS WHOSE OFFERED PRICES WERE LOWER THAN THOSE OF THE CONTRACTOR RECEIVING THE AWARD SHALL BE FURNISHED THE REASONS WHY THEIR PROPOSALS WERE NOT ACCEPTED. ADDITIONALLY, A PROPER CONSIDERATION OF THIS TYPE OF BID PROTEST BY OUR OFFICE MAY REQUIRE AN EXAMINATION OF THE SPECIFIC BASES ON WHICH EACH MEMBER OF THE EVALUATION TEAM APPLIED EACH OF THE EVALUATION CRITERIA SET OUT IN THE REQUEST FOR PROPOSALS. IN VIEW THEREOF, AND SINCE THE RECORD FORWARDED TO THIS OFFICE DOES NOT INCLUDE SUCH DETAILED INFORMATION, IT IS SUGGESTED THAT YOUR PROCEDURES IN THIS AREA BE REVIEWED WITH A VIEW TO ASSURING THAT ADEQUATE RECORDS FOR THE ABOVE PURPOSES ARE AVAILABLE.