B-181784, APR 22, 1975

B-181784, APR 22, 1975

PARTICULARLY IN LIGHT OF NAVY'S CURRENT POSITION THAT AS A RESULT OF ITS EXPERIENCE UNDER ITS NEGOTIATION PROCEDURES FOR MESS ATTENDANT SERVICES ALL FUTURE CONTRACTS OF THIS TYPE WILL BE FORMALLY ADVERTISED, OPTIONS IN EXISTING CONTRACTS ENTERED INTO UNDER IMPROPER NEGOTIATION PROCEDURES SHOULD NOT BE EXERCISED. FURTHERMORE, SINCE SPECIFIC CONTRACTS IN QUESTION HAVE SUBSTANTIALLY RUN THEIR INITIAL 1-YEAR BASE PERIODS, LITTLE USEFUL PURPOSE IN TERMS OF REMEDY WOULD BE SERVED THROUGH FURTHER CONSIDERATION OF PROTESTS.

DYNETERIA, INC.:

DYNETERIA, INC. (DYNETERIA), PROTESTS THE REJECTIONS OF ITS PROPOSALS AND/OR THE AWARD OF CONTRACTS UNDER REQUESTS FOR PROPOSALS (RFP) N00123 74 -R-1837; -1877; -1898; -1908; -1962; -2001; AND -2135, ISSUED BY THE NAVAL REGIONAL PROCUREMENT OFFICE, LONG BEACH, CALIFORNIA. THE RFP'S SOUGHT OFFERS RESPECTIVELY FOR THE PERFORMANCE OF MESS ATTENDANT SERVICES FOR THE PERIOD OF JULY 1, 1974 - JUNE 30, 1975, AT THE FOLLOWING INSTALLATIONS IN CALIFORNIA: NAVAL AIR STATION, NORTH ISLAND (-1837); NAVAL AIR STATION, MIRAMAR, SAN DIEGO (-1877); NAVAL AIR FACILITY, EL CENTRO (-1898); NAVAL TRAINING CENTER, SAN DIEGO (-1908); NAVAL SUBMARINE SUPPORT FACILITY, SAN DIEGO (-1962); NAVAL CONSTRUCTION BATTALION CENTER, PORT HUENEME (-2001); AND NAVAL STATION, SAN DIEGO ( 2135).

DYNETERIA CONTENDS THAT THE PROCEDURES AND PRACTICES USED IN THE EVALUATION OF ITS RESPECTIVE PROPOSALS UNDER THE SEVEN RFP'S WERE IMPROPER AND CONTRARY TO THE REQUIREMENTS OF THE ARMED SERVICES PROCUREMENT REGULATION (ASPR). ITS INITIAL PROPOSALS FOR FIVE OF THE RFP'S (-1837; - 1877; -1908; -2001; AND -2135) WERE REJECTED FOR NOT BEING WITHIN COMPETITIVE RANGE. DYNETERIA ASSERTS THAT A JUNE 10, 1974, FORM LETTER FROM THE NAVY DID NOT ADEQUATELY INFORM THE COMPANY OF THE REASONS WHY THE PROPOSED MANNING CHARTS WERE CONSIDERED TO BE INADEQUATE. ITS PROPOSAL FOR EACH RFP WAS SUBMITTED AT THE TOTAL (100 PERCENT) OF THE GOVERNMENT'S ESTIMATED PERSON-HOURS AND DYNETERIA STATES THAT:

"MANNING CHARTS ON THESE PARTICULAR JOBS WERE MADE FOR THE PAST SEVERAL YEARS AND HAVE BEEN IN ACCORDANCE TO THE EXACT SPECIFICATIONS AND MANNING REQUIRED IN PREVIOUS YEARS. VERY LITTLE IF ANY CHANGE TO THESE SPECIFICATIONS OR MANNING, THAT HAVE BEEN ACCEPTABLE IN PRIOR YEARS, HAVE BEEN MADE."

IN VIEW OF ITS PREVIOUS EXPERIENCE, DYNETERIA ASSERTS THAT UNDER THE PROVISIONS OF ASPR IT WAS IMPROPER FOR THE CONTRACTING OFFICER TO ARBITRARILY DENY THE CORPORATION ANY OPPORTUNITY TO PARTICIPATE IN NEGOTIATIONS ON THE ALLEGED DEFICIENCIES.

THE PROBLEMS ASSOCIATED WITH THE MANNER IN WHICH FOOD SERVICE CONTRACTS HAVE BEEN NEGOTIATED HAVE BECOME MANIFEST IN RECENT YEARS. THESE PROBLEMS RESULTED IN NUMEROUS PROTESTS BY COMPETING FIRMS, WHICH IN THE AGGREGATE DEMONSTRATE THE DIFFICULTIES INHERENT IN THE STRUCTURE FOR EVALUATING PROPOSALS. SEE MATTER OF IRA GELBER FOOD SERVICE, INC.; T AND S SERVICE ASSOCIATES, INC., B-181663, MARCH 28, 1975, 54 COMP. GEN. .

THE NAVY HAS AGREED, AS A RESULT OF ITS EXPERIENCE UNDER ITS NEGOTIATION PROCEDURES FOR THESE CONTRACTS, THAT FUTURE MESS ATTENDANT SERVICE CONTRACTS WILL BE AWARDED ON A FORMALLY ADVERTISED BASIS. IT IS OUR VIEW, PARTICULARLY IN LIGHT OF THE NAVY'S CURRENT POSITION, THAT OPTIONS IN EXISTING CONTRACTS WHICH WERE REACHED UNDER IMPROPER NEGOTIATION PROCEDURES SHOULD NOT BE EXERCISED. SEE MATTER OF IRA GELBER FOOD SERVICE, INC., ET AL., SUPRA. EXERCISE OF THOSE OPTIONS WOULD UNNECESSARILY EXTEND THE EFFECT OF THE QUESTIONABLE PROCEDURES.

FURTHERMORE, BECAUSE THE SPECIFIC FOOD SERVICE CONTRACTS PRESENTLY AT ISSUE HAVE SUBSTANTIALLY RUN THEIR INITIAL 1-YEAR BASE PERIODS, LITTLE USEFUL PURPOSE IN TERMS OF REMEDY WOULD BE SERVED THROUGH FURTHER CONSIDERATION OF THE PROTESTS.