[Protest of Army Contract Award for Track-Shoe Assemblies for M1 Tanks]
Highlights
A firm protested an Army contract award to any other firm under an invitation for bids for tank components. The protester contended that it was the low bidder in the procurement by virtue of a telegraphic bid modification which it sent to the Army the day of bid opening. The Army stated that it did not receive the modification until the day after bid opening. Late telegraphic modifications received after bid opening may be considered if they are received prior to contract award and late receipt is due solely to government mishandling. GAO found that the Army failed to receive the late bid on time because its telex machine was not functioning due to the Army's failure to pay its telegraph bill. The Army argued that the cause of the late receipt was the failure of the telegraph company to provide notice that the machine was out of service. GAO found that the Army must be held responsible for the service interruption because it failed to ensure that its telegraph bill was paid on time. Furthermore, GAO could not agree with the Army that the telegraph company was negligent in failing to alert users of out-of-service terminals. GAO also found that the protester had no alternative means of transmitting its message. Under the circumstances, GAO recommended that the Army consider the bid as amended. Accordingly, the protest was sustained.