B-172610, JUL 13, 1971

B-172610, JUL 13, 1971

BID PROTEST - CANCELLATION OF IFB - SUPPLIES NO LONGER REQUIRED DECISION DENYING PROTEST OF STEAM SPECIALTIES COMPANY, ONLY BIDDER, AGAINST CANCELLATION OF IFB FOR 8 STEAM CONTROL VALVES BY NAVY REGIONAL PROCUREMENT OFFICE, OAKLAND, CALIFORNIA. AS THE CONTRACTING OFFICER RECEIVED NOTICE THAT THE SOLICITATION WAS A DUPLICATE OF ONE PREVIOUSLY FILLED AND NO LONGER NEEDED, CANCELLATION PRIOR TO AWARD WAS REQUIRED AND PROPER UNDER THE IFB, ASPR, AND THE CONTROLLING STATUTE, 10 U.S.C. 2305(C).

TO STEAM SPECIALTIES COMPANY:

FURTHER REFERENCE IS MADE TO YOUR TELEGRAM DATED APRIL 14, 1971, PROTESTING THE CANCELLATION OF INVITATION FOR BIDS NO. N66314-71-B 1709, ISSUED BY THE NAVAL REGIONAL PROCUREMENT OFFICE, OAKLAND, CALIFORNIA.

THE INVITATION WAS ISSUED FEBRUARY 22, 1971, AND AS AMENDED, SOLICITED BIDS FOR EIGHT (8) STEAM CONTROL VALVES WITH CONTRACT DATA REQUIREMENTS IN ACCORDANCE WITH DESIGNATED MILITARY SPECIFICATIONS. BIDS WERE OPENED ON MARCH 15, 1971, AND YOUR BID AT $71,000, INCLUDING ON-BOARD REPAIR PARTS AT $6,000 WITH FIRST ARTICLE DELIVERY WITHIN 120 DAYS, WAS THE ONLY ONE RECEIVED.

ALTHOUGH THE CONTRACTING ACTIVITY HAD SATISFACTORY CONTRACTING EXPERIENCE WITH YOUR FIRM, NO INFORMATION WAS AVAILABLE CONCERNING THE PROPOSED SUBCONTRACTOR, CONTROL COMPONENTS, INCORPORATED, LOS ALAMITOS, CALIFORNIA. ACCORDINGLY, TO BE ASSURED THAT THE VALVES COULD BE PRODUCED TO MEET REQUIRED SPECIFICATIONS WITHIN THE DELIVERY TIME SPECIFIED, A PRE- AWARD SURVEY WAS CONDUCTED ON THE SUBCONTRACTOR AND A RECOMMENDATION WAS MADE FOR COMPLETE AWARD.

ON APRIL 8, 1971, PRIOR TO THE RECEIPT OF THE SURVEY RECOMMENDATION, THE REQUIRING ACTIVITY, HUNTERS POINT NAVAL SHIPYARD, REQUESTED THE CONTRACTING OFFICER NOT TO AWARD ANY CONTRACT UNTIL FURTHER NOTICE. APRIL 15, 1971, THE REQUIRING ACTIVITY REPORTED THAT THE REQUISITION WAS A DUPLICATE OF ONE THAT HAD BEEN FORWARDED TO THE NAVY SHIPS PARTS CONTROL CENTER, MECHANICSBURG, PENNSYLVANIA, BY THE USS RANGER (CVA-61) ON SEPTEMBER 20, 1970, AND THAT THE PROCUREMENT HAD BEEN MET BY A CONTRACT AWARDED MARCH 24, 1971, AT A PRICE OF $42,992. THE REQUIRING ACTIVITY THEREFORE REQUESTED THAT ITS REQUISITION BE CANCELLED.

YOUR ATTENTION IS INVITED TO ARMED SERVICES PROCUREMENT REGULATION (ASPR) 2-404.1, WHICH PROVIDES IN PERTINENT PART THAT INVITATIONS FOR BIDS MAY BE CANCELLED AFTER OPENING BUT PRIOR TO AWARD WHEN THE SUPPLIES OR SERVICES BEING PROCURED ARE NO LONGER REQUIRED.

MOREOVER, STANDARD FORM 33A, INCORPORATED IN THE INVITATION, EXPRESSLY RESERVES TO THE GOVERNMENT THE RIGHT TO REJECT ANY AND ALL BIDS RECEIVED UNDER THE INVITATION, AND THE CONTROLLING STATUTE, 10 U.S.C. 2305(C), SPECIFICALLY AUTHORIZES REJECTION OF ALL BIDS IF SUCH ACTION IS DETERMINED TO BE IN THE PUBLIC INTEREST. CONTRACTING OFFICERS NOT ONLY HAVE THE RIGHT TO REJECT BIDS ON SUPPLIES OR SERVICES WHICH ARE NO LONGER NEEDED, BUT WOULD BE NEGLECTING THEIR DUTY IF THEY DID NOT DO SO.

WE REGRET THAT THE LACK OF COMMUNICATIONS CAUSED DUPLICATE SOLICITATIONS TO BE ISSUED. HOWEVER, WE THINK YOU WILL AGREE THAT IT WOULD NOT HAVE BEEN IN THE GOVERNMENT'S BEST INTEREST TO AWARD A CONTRACT TO MEET A REQUIREMENT WHICH WOULD BE SATISFIED UNDER A CONTRACT AWARDED EARLIER. THE CIRCUMSTANCES, WE BELIEVE THAT THE CONTRACTING OFFICER WAS UNDER A DUTY TO CANCEL THE LATER INVITATION.

ACCORDINGLY, YOUR PROTEST IS DENIED.