Skip to Highlights
Highlights

THAT NEGOTIATIONS NEED NOT BE CONDUCTED WHEN ADEQUATE PRICE COMPETITION IS RECEIVED. RELATES TO SITUATION WHERE SUCCESSFUL CONTRACTOR IS SELECTED AND AWARD MADE BASED UPON INITIAL PROPOSALS ALONE AND IS NOT A JUSTIFICATION FOR CONDUCTING NEGOTIATIONS WITH ONLY ONE OFFEROR. WHERE NEGOTIATIONS ARE CONDUCTED WITH ONLY ONE OFFEROR. IT SHOULD BE BASED ON A DETERMINATION THAT OTHER OFFERORS ARE NOT WITHIN A COMPETITIVE RANGE. SECRETARY: REFERENCE IS MADE TO LETTERS OF JULY 29 AND OCTOBER 13. THERE IS ENCLOSED FOR YOUR INFORMATION A COPY OF OUR LETTER OF TODAY TO THE PROTESTANT. WE WISH TO BRING TO YOUR ATTENTION THE FACT THAT WHILE THE TECHNICAL PROPOSALS WERE EVALUATED ON A POINT SYSTEM BASIS.

View Decision

B-167054 (2), JAN. 14, 1970

BID PROTEST--NEGOTIATIONS DECISION TO SECRETARY OF HEW CALLING ATTENTION TO IMPROPER CONTRACTING PROCEDURES THAT SHOULD BE REMEDIED. AUTHORITY IN SECTION 1-3.805-1 (A) (5), FEDERAL PROCUREMENT REGULATIONS, THAT NEGOTIATIONS NEED NOT BE CONDUCTED WHEN ADEQUATE PRICE COMPETITION IS RECEIVED, RELATES TO SITUATION WHERE SUCCESSFUL CONTRACTOR IS SELECTED AND AWARD MADE BASED UPON INITIAL PROPOSALS ALONE AND IS NOT A JUSTIFICATION FOR CONDUCTING NEGOTIATIONS WITH ONLY ONE OFFEROR. WHERE NEGOTIATIONS ARE CONDUCTED WITH ONLY ONE OFFEROR, IT SHOULD BE BASED ON A DETERMINATION THAT OTHER OFFERORS ARE NOT WITHIN A COMPETITIVE RANGE, PRICE AND OTHER FACTORS CONSIDERED.

TO MR. SECRETARY:

REFERENCE IS MADE TO LETTERS OF JULY 29 AND OCTOBER 13, 1969, FROM THE ACTING ASSISTANT SECRETARY FOR ADMINISTRATION FURNISHING REPORTS REGARDING THE PROTEST OF MANAGEMENT ASSISTANCE CORPORATION AGAINST THE AWARD OF A CONTRACT BY THE NATIONAL INSTITUTES OF HEALTH.

THERE IS ENCLOSED FOR YOUR INFORMATION A COPY OF OUR LETTER OF TODAY TO THE PROTESTANT.

WE WISH TO BRING TO YOUR ATTENTION THE FACT THAT WHILE THE TECHNICAL PROPOSALS WERE EVALUATED ON A POINT SYSTEM BASIS, THE REQUEST FOR PROPOSALS DID NOT APPRISE OFFERORS OF THE EVALUATION FACTORS AND THEIR RELATIVE WEIGHTS. WE HAVE OFTEN HELD THAT SOUND PROCUREMENT POLICY REQUIRES THAT OFFERORS BE INFORMED OF ALL EVALUATION FACTORS AND OF THE RELATIVE WEIGHTS TO BE ATTACHED TO EACH FACTOR. SEE 44 COMP. GEN. 439 (1965); 47 ID. 252 (1967); AND 47 ID. 336 (1967).

FURTHER, IT IS STATED IN THE REPORTS THAT NEGOTIATIONS WERE NOT CONDUCTED WITH ANY OTHER OFFEROR THAN GENASYS BECAUSE IT WAS CONSIDERED THAT IT SUBMITTED THE BEST PROPOSAL FROM BOTH A TECHNICAL AND COST STANDPOINT. IS STATED THAT THIS WAS BASED UPON THE FACT THAT THE REQUEST FOR PROPOSAL PROVIDED THAT THE GOVERNMENT RESERVES THE RIGHT TO MAKE AN AWARD WITHOUT FURTHER DISCUSSION OF THE PROPOSALS SUBMITTED AND SECTION 1-3.805-1 (A) (5) OF THE FEDERAL PROCUREMENT REGULATIONS PROVIDED THAT NEGOTIATIONS NEED NOT BE CONDUCTED WHEN ADEQUATE PRICE COMPETITION IS RECEIVED. HOWEVER, THOSE PROVISIONS RELATE TO SITUATIONS WHERE THE SUCCESSFUL CONTRACTOR IS TO BE SELECTED AND AWARD MADE BASED UPON THE INITIAL PROPOSALS ALONE AND ARE NOT A JUSTIFICATION FOR CONDUCTING NEGOTIATIONS WITH ONLY ONE OFFEROR. WHERE NEGOTIATIONS ARE CONDUCTED WITH ONE OFFEROR, IT SHOULD BE BASED UPON A DETERMINATION THAT OTHER OFFERORS ARE NOT WITHIN A COMPETITIVE RANGE, PRICE AND OTHER FACTORS CONSIDERED.

APPROPRIATE STEPS SHOULD BE TAKEN TO INSURE THAT THE FOREGOING PROCEDURES ARE FOLLOWED IN FUTURE PROCUREMENTS.

GAO Contacts