B-129741, NOV. 26, 1956

B-129741, NOV. 26, 1956

TO COVERT MOVING AND STORAGE COMPANY, INC.:

YOUR LETTER OF SEPTEMBER 27, 1956, TO THE DEPUTY CHIEF OF STAFF FOR LOGISTICS, DEPARTMENT OF THE ARMY, PROTESTING THE AWARD OF A CONTRACT TO THE SANDERS TRANSFER AND STORAGE COMPANY FOR COMMERCIAL STORAGE OF HOUSEHOLD GOODS AT THE TENNESSEE MILITARY DISTRICT FOR THE PERIOD JULY 1, 1956, THROUGH JUNE 30, 1957, PURSUANT TO INVITATION FOR BIDS NO. TMD 40- 122-56-6, HAS BEEN FORWARDED TO US FOR CONSIDERATION.

THE INVITATION FOR BIDS WAS ISSUED ON APRIL 25, 1956. BIDS WERE RECEIVED FROM YOUR COMPANY AND FROM SANDERS. UPON EVALUATION OF THE BIDS IT WAS DETERMINED THAT THE PRICES BID FOR PACKING AND CRATING FOR OVERSEAS AND DOMESTIC SHIPMENT WERE TOO HIGH AND, ACCORDINGLY, ALL BIDS FOR THOSE ITEMS WERE REJECTED. YOU CONCEDE THAT THE REJECTION OF ALL BIDS FOR THOSE ITEMS WAS PROPER. AWARD AS TO THE OTHER ITEMS WAS MADE TO SANDERS. AMOUNTS BID ON THE ITEMS AS TO WHICH ALL BIDS WERE NOT DISCARDED ARE AS FOLLOWS:

CHART

COVERT MOVING AND SANDERS TRANSFER

STORAGE COMPANY AND STORAGE COMPANY

ITEM EST QUALITY UNIT PRICE AMT. UNIT PRICE AMT. 1. COMPLETE PRESTORAGE SERVICES,HANDLING IN SERVICES AND ONE MONTH'S STORAGE OF UNCRATED HOUSEHOLD GOODS PICKED UP WITHIN 15 MILES FROM NASHVILLE, TENNESSEE 485,000 2.29 $11,106.50 1.90 $9,215.00 2. ADDITIONAL CHARGE PER MILE FOR EACH MILE IN EXCESS OF 15 MILES FROM NASHVILLE, TENNESSEE 195,000 .0597.50 .06 117.00 3. COST PER MONTH FOR

STORAGE 250,000 .35 875.00 .36 900.00 4. HANDLING-OUT SERVICES

250,000 .04 100.00 0 0 5. UNPACKING,

UNCRATING, DRAYAGE TO RESIDENCE AND PLACING THEREIN WITHIN 15 MILES FROM NASHVILLE, TENNESSEE 225,000 1.11 2,497.50 1.50 3,375.00 6. ADDITIONAL CHARGE PER MILE FOR EACH MILE IN EXCESS OF 15 MILES FROM NASHVILLE, TENNESSEE, FOR UNPACKING AND UNCRATING 75,000 .05 37.50 .06 45.00

$14,714.00 $13,652.00

LESS 2 PERCENT 294.28

PROMPT PAYMENT $14,419.72

DISCOUNT

IT IS READILY APPARENT FROM THE FOREGOING THAT SANDERS WAS THE LOW BIDDER AND AWARD COULD PROPERLY BE MADE TO THAT CONCERN, IF OTHERWISE QUALIFIED.

PARAGRAPH 14 OF THE SPECIAL CONDITIONS TO THE INVITATION FOR BIDS PROVIDES THAT A PRE-AWARD SURVEY BE MADE OF EACH BIDDER'S FACILITIES TO INSURE THAT THE GOODS WOULD BE PROPERLY PROTECTED. MINIMUM REQUIREMENTS WERE STATED AS FOLLOWS:

"/1) FIRE ALARM SYSTEM AND ADEQUATE FIRE FIGHTING PROTECTION.

"/2) ADEQUATE AISLES FOR ACCESS TO ANY LOT OF STORED GOODS FOR INSPECTION PURPOSES.

"/3) GOOD HOUSEKEEPING PRACTICES (CLEAR OF DIRT, OLD PAPERS, TRASH, AND MATERIALS THAT CREATE FIRE HAZARDS.)

"/4) ADEQUATE MEASURES FOR THE PREVENTION OF EXCESSIVE MOISTURE, DUST, PILFERAGE, FIRE OR FLOOD DAMAGE, HEAT AND COLD DAMAGE.

"/5) ADEQUATE INSECT AND RODENT CONTROL SERVICE.

"/6) BUILDING CONSTRUCTION OF HIGHER GRADE THAN FRAME, IRON CLAD, OR OTHER SUBSTANDARD CONSTRUCTION.'

PRE-AWARD SURVEY OF THE SANDERS COMPANY FOUND IT TO CONFORM TO ALL THE STATED REQUIREMENTS EXCEPT NO. 1, AND THAT IT IS REPORTED THAT THE DEFICIENCY IN THAT RESPECT WAS IMMEDIATELY REMEDIED BY THE INSTALLATION OF EQUIPMENT WHICH HAS RECEIVED UNDERWRITERS' APPROVAL. WITH RESPECT TO THE CAPABILITIES OF THE COMPANY, THE PRE-AWARD SURVEY REPORT STATES AS FOLLOWS:

"SANDERS TRANSFER AND STORAGE COMPANY IS ONE OF THE LARGEST AND BEST EQUIPPED MOVING AND STORAGE FIRMS IN THIS CITY. THE ABOVE FIRM HAS PERFORMED ALL SIMILAR SERVICES IN AN EXCELLENT MANNER FOR THIS HEADQUARTERS SINCE JULY 1951, WITH THE EXCEPTION OF A PERIOD FROM 1 JULY 1954 THRU 31 JANUARY 1955, WHEN THE CONTRACT WAS AWARDED TO IDEAL VANS, WHICH WAS TERMINATED BY DEFAULT, AND SANDERS PERFORMED THE SERVICES UNDER A NEGOTIATED CONTRACT FOR THE BALANCE OF FY-55. OUR PRESENT CONTRACT IS BEING PERFORMED BY SANDERS TRANSFER AND STORAGE COMPANY AND A CHECK WITH THE TRANSPORTATION OFFICER AND THE POST ENGINEER REVEALS NO COMPLAINTS OF ANY SORT, AND SERVICES UNDER THIS CONTRACT HAVE BEEN ACCOMPLISHED IN AN OUTSTANDING MANNER. A THOROUGH CHECK WAS MADE TO ASCERTAIN WHETHER OR NOT ANY COMPLAINTS HAVE BEEN RECEIVED AND THERE WERE NONE. THEY ARE PERFORMING SERVICES UNDER A NEGOTIATED CONTRACT FOR THIS AREA ON A GENERAL SERVICES ADMINISTRATION SCHEDULE. PRIOR TO 1951 THEY PERFORMED THE SERVICES FOR THIS AREA THROUGH THE FACILITIES OF MILAN ARSENAL AND THE SERVICES TO THAT INSTALLATION WERE ALSO EXCELLENT. THEY ARE AGENTS FOR ALLIED VAN LINES, INC.'

SINCE, AS WE INDICATED ABOVE, SANDER'S BID WAS LOW, AND ITS QUALIFICATIONS APPEAR TO BE FULLY ESTABLISHED, THE AWARD WAS PROPERLY MADE TO THAT FIRM, REGARDLESS OF THE ACCURACY OR FAIRNESS OF THE SURVEY OF YOUR PREMISES. ALTHOUGH IN YOUR LETTER YOU COMPARE YOUR FACILITIES WITH THOSE OF SANDERS AND CONCLUDE "WE FEEL THAT SANDERS IS NOT QUALIFIED TO SERVICE THIS CONTRACT * * *," THE ADMINISTRATIVE OFFICE IS VESTED WITH A LARGE DEGREE OF DISCRETION IN DETERMINING THE RESPONSIBILITY OF BIDDERS, AND WE WOULD NOT BE WARRANTED IN QUESTIONING THE VALIDITY OF THE ADMINISTRATIVE CONCLUSIONS IN THE ABSENCE OF A CLEAR SHOWING OF BAD FAITH OR LACK OF REASONABLE FACTUAL BASIS FOR THE DETERMINATIONS MADE.