B-142401, MAY 20, 1960

B-142401, MAY 20, 1960

TO MANHATTAN LIGHTING EQUIPMENT CO., INC.:

REFERENCE IS MADE TO YOUR LETTER OF MARCH 26, 1960, PROTESTING AGAINST THE REJECTION OF YOUR BIDS UNDER INVITATIONS NOS. IFB-155-/1 3/-1488-60 AND IFB-155-/1-3/-1449-60 ISSUED BY THE GENERAL STORES SUPPLY OFFICE, PHILADELPHIA, PENNSYLVANIA. THERE HAVE BEEN RECEIVED ALSO YOUR LETTERS OF MARCH 31, APRIL 2, APRIL 16 AND MAY 7, 1960.

INVITATION NO. IFB-155-/1-3/-1488-60 WAS ISSUED DECEMBER 11, 1959, REQUESTING BIDS--- TO BE OPENED DECEMBER 29, 1959--- FOR FURNISHING THREE ITEMS OF CIRCULAR SAW BLADES. IN RESPONSE TO THE INVITATION, YOU SUBMITTED THE LOW BID OF $1,471.87 ON ITEM NO. 2 AND A LOW TIE BID OF $618.70 ON ITEM NO. 3. THE TIE ON ITEM NO. 3 WAS BROKEN IN YOUR FAVOR IN ACCORDANCE WITH ASPR 2-406.4.

INVITATION NO. IFB-155-/1-3/-1449-60 WAS ISSUED DECEMBER 9, 1959, REQUESTING BIDS--- TO BE OPENED JANUARY 8, 1960--- FOR FURNISHING TWO ITEMS OF ABRASIVE WHEELS. IN RESPONSE TO THE INVITATION, YOU SUBMITTED THE LOW BID ON BOTH ITEMS ($1,809.96 ON ITEM NO. 1 AND $1,787.49 ON ITEM NO. 2).

THE CONTRACTING OFFICER REQUESTED THE INSPECTOR OF NAVAL MATERIAL, NEW YORK, TO MAKE PREAWARD SURVEYS IN CONNECTION WITH BOTH INVITATIONS. HIS REPORT DATED FEBRUARY 17, 1960, THE INSPECTOR OF NAVAL MATERIAL REPORTED THAT THE PREAWARD SURVEY HAD SHOWN THAT YOUR CORPORATION COULD NOT BE CONSIDERED A RESPONSIBLE BIDDER UNDER ASPR 1.903 IN VIEW OF A RECORD OF FURNISHING SUBSTANDARD MATERIAL, A STEADY PATTERN OF DELINQUENCY AND A TERMINATION FOR DEFAULT. WITH THE REPORT THERE WERE ENCLOSED COPIES OF LETTERS AND PAPERS IN SUPPORT OF THE CONCLUSION REACHED, SHOWING UNSATISFACTORY PERFORMANCE BY YOUR CORPORATION IN CONNECTION WITH NUMEROUS NAVY, ARMY, AND AIR FORCE CONTRACTS.

FOR THE REASONS ABOVE INDICATED, THE CONTRACT REVIEW BOARD REJECTED YOUR BIDS UNDER THE REFERRED-TO INVITATIONS. ACCORDINGLY, ON MARCH 17, 1960, AWARDS WERE MADE ON ITEM NO. 2 OF INVITATION IFB-155-/1-3/-1488 60 TO HUTHER BROTHERS SAW MANUFACTURING COMPANY, INCORPORATED, AT A PRICE OF $1,601.28 AND ON ITEM NO. 3 TO GILLER TOOL CORPORATION AT A PRICE OF $618,70; AND UNDER DATE OF MARCH 2, 1960, AWARD WAS MADE ON ITEMS NOS. 1 AND 2 OF INVITATION NO. IFB-155-/1-3/-1449-60 TO AMERICAN EMERY WHEEL WORKS AT A PRICE OF $4,129.92.

WE HAVE HELD CONSISTENTLY THAT THE QUESTION OF THE QUALIFICATIONS OF A PROSPECTIVE CONTRACTOR PRIMARILY IS FOR DETERMINATION BY THE ADMINISTRATIVE OFFICERS CONCERNED AND SUCH DETERMINATION WILL NOT BE QUESTIONED BY US IN THE ABSENCE OF A CLEAR SHOWING OF BAD FAITH OR LACK OF A REASONABLE FACTUAL BASIS THEREFOR. 39 COMP. GEN. 468; 38 ID. 131; ID. 778; 37 ID. 430; ID. 676; ID. 798; 36 ID. 42. IN THE INSTANT MATTER, THE INFORMATION SHOWN IN THE FILE IS CONSISTENT WITH THE CONCLUSION THAT THE ACTIONS OF THE ADMINISTRATIVE OFFICERS WERE TAKEN IN GOOD FAITH, AFTER CAREFUL CONSIDERATION, FOR THE PURPOSE OF SERVING THE BEST INTERESTS OF THE GOVERNMENT, AND THAT THERE WAS A REASONABLE BASIS FOR SUCH ACTIONS. THEREFORE, THERE APPEARS NO PROPER BASIS FOR OBJECTION BY OUR OFFICE TO THE ACTION OF THE ADMINISTRATIVE OFFICE IN REJECTING YOUR BIDS.

IT MAY BE STATED THAT THE "EXCERPT FROM THE GOVERNMENT CONTRACTOR DATED JUNE 15, 1959--- PAGE " TRANSMITTED WITH YOUR LETTER OF MARCH 26, 1960, AND THE DECISIONS REFERRED TO THEREIN, HAVE BEEN GIVEN CONSIDERATION AND ARE REGARDED AS CONSISTENT WITH THE CONCLUSION ABOVE STATED IN THE INSTANT MATTER, IN VIEW OF THE FACTS AS REPORTED AND SHOWN BY THE FILE.