B-173806, AUG 16, 1971

B-173806, AUG 16, 1971

BID PROTEST - BID RESPONSIVENESS - LOT BIDDING DECISION REGARDING REJECTION OF BID OF WILLAMETTE IRON & STEEL CO. UNDER IFB ISSUED BY NAVAL SHIP SYSTEMS COMMAND FOR DRYDOCKING AND TOPSIDE REPAIRS TO THE USS MARS. THE CONTRACTING OFFICER REJECTED WILLAMETTE'S BID AS NONRESPONSIVE AS THE IFB REQUIRED A BID ON LOT 3 TO BE ACCOMPANIED BY BIDS ON LOTS 1 AND 2, AND WILLAMETTE FAILED TO BID ON LOT 2. THE PURPOSE OF BIDDING BY LOTS WAS TO PROVIDE SMALLER YARDS THAT WOULD NOT HAVE THE CAPABILITY TO BID ON THE TOTAL JOB AN OPPORTUNITY TO COMPETE FOR A PORTION OF THE WORK. HOWEVER, SINCE NO SMALL SHIPYARD IS IN CONTENTION FOR AWARD, THE PURPOSE SOUGHT TO BE ACHIEVED BY LOT BIDDING HAS NOT BEEN VIOLATED. ACCORDINGLY, FAILURE OF WILLAMETTE TO BID ON LOT 2 MAY BE REGARDED AS AN IMMATERIAL DEVIATION AND THEY MAY BE CONSIDERED FOR THE AWARD OF LOT 3.

TO MR. SECRETARY:

REFERENCE IS MADE TO LETTER 00J:AF:GW SER 640-00J OF AUGUST 9, 1971, FROM THE COUNSEL, NAVAL SHIP SYSTEMS COMMAND, REQUESTING A DECISION REGARDING THE REJECTION OF THE BID OF WILLAMETTE IRON & STEEL CO. UNDER INVITATION FOR BIDS NO. N62798-72-B-001 FOR DRYDOCKING AND TOPSIDE REPAIRS TO THE U.S.S. MARS (AFS-1).

THE INVITATION SOLICITED BIDS FOR DRYDOCKING WORK ALONE (LOT 1), TOPSIDE REPAIRS ALONE (LOT 2), AND FOR THE TOTAL OF LOT 1 AND LOT 2 WORK (LOT 3). THE BIDDING INFORMATION AND REQUIREMENTS OF THE INVITATION ARE AS FOLLOWS:

"(A) THE GOVERNMENT RESERVES THE RIGHT TO MAKE AWARD TO BIDDERS ON ANY COMBINATION OF LOTS 1 THROUGH 3 AS MAY BE IN THE BEST INTEREST OF THE GOVERNMENT, PRICE AND OTHER FACTORS CONSIDERED.

"(B) BIDS WILL NOT BE CONSIDERED WHICH DO NOT CONTAIN THE INFORMATION CALLED FOR IN SUBPARAGRAPH (C) AND/OR WHICH ARE NOT SUBMITTED IN STRICT ACCORDANCE WITH SUBPARAGRAPH (D).

"(C) BY SIGNING AND SUBMITTING THE BID, THE BIDDER REPRESENTS THAT:

"(1) HE IS QUALIFIED AND CAN ......, CANNOT ......, PERFORM THE TOPSIDE WORK REQUIRED WITHIN THE SPECIFIED PERIOD.

"(2) HE IS QUALIFIED AND CAN ......, CANNOT ......, PERFORM THE DRY DOCK WORK WITHIN THE SPECIFIED PERIOD.

"(3) HE IS QUALIFIED AND CAN ......, CANNOT ......, PERFORM THE TOTAL TOPSIDE AND DRY-DOCK WORK REQUIRED.

"(D) NO BIDDER WILL BE AWARDED A GREATER AMOUNT OF SHIP WORK THAN HE HAS INDICATED A CAPABILITY FOR PERFORMING UNDER SUBPARAGRAPH (C) ABOVE. *** ALL BIDDERS INDICATING A CAPABILITY UNDER (C)(3) MUST SUBMIT BIDS ON ALL LOTS."

CONCERNING THE REQUIREMENT THAT BIDS ON LOT 3 ALSO BE ACCOMPANIED BY BIDS ON LOT 1 AND LOT 2, THE SHIP REPAIR CONTRACTING MANUAL PROVIDES THAT "THE PRIMARY PURPOSE OF LOT BIDDING IS TO ENABLE SMALLER YARDS TO PARTICIPATE IN THE PERFORMANCE OF SPECIFIC PORTIONS OF THE WORK IN CASES WHERE THE SCOPE OF THE TOTAL JOB WOULD BE BEYOND THEIR INDIVIDUAL CAPACITIES."

FIVE BIDS WERE RECEIVED UNDER THE INVITATION. WILLAMETTE IRON & STEEL CO. AND TODD SHIPYARDS CORPORATION, EACH HAVING THE CAPABILITIES FOR THE TOTAL JOB, ARE THE ONLY BIDDERS THAT ARE IN THE REALM OF CONSIDERATION FOR AN AWARD ON LOT 3. THE BIDS FROM THE TWO COMPANIES ARE:

LOT 1 LOT 2 LOT 3

WILLAMETTE $596,000 "NO BID" $1,973,000

TODD 357,000 $1,714,000 2,071,000

THE CONTRACTING OFFICER REJECTED THE WILLAMETTE BID AS NONRESPONSIVE BECAUSE IT FAILED TO BID ON LOT 2 EVEN THOUGH IT INDICATED IN SUBPARAGRAPH (C), ABOVE, THAT IT HAD THE CAPABILITY TO PERFORM THE TOTAL TOPSIDE AND DRYDOCK WORK.

AS INDICATED IN THE SHIP REPAIR CONTRACTING MANUAL, THE PURPOSE OF REQUIRING BIDS ON A LOT BASIS IS TO PROVIDE SMALLER YARDS THAT WOULD NOT HAVE THE CAPABILITY TO BID ON THE TOTAL JOB AN OPPORTUNITY TO COMPETE FOR A PORTION OF THE WORK. HOWEVER, SINCE NO SMALL SHIPYARD IS IN CONTENTION FOR AWARD, THE PURPOSE SOUGHT TO BE ACHIEVED BY LOT BIDDING WOULD NOT BE VIOLATED. ACCORDINGLY, THE FAILURE OF WILLAMETTE TO BID ON LOT 2 MAY BE REGARDED AS AN IMMATERIAL DEVIATION. THEREFORE, WILLAMETTE MAY BE CONSIDERED FOR AWARD OF LOT 3 IF PROPER IN OTHER RESPECTS.