Bollinger Machine Shop & Shipyard, Inc.

B-261135.2 Sep 01, 1995 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights The low bid under an invitation for bids for lifeboats and associated services and equipment calling for a base quantity and 4 option periods for additional quantities is not materially unbalanced where there is no credible evidence that the bid contains overstated prices for the lifeboats such that it could be considered mathematically unbalanced. Was not precluded by the solicitation's prohibition against facsimile submissions. With four 365-day option periods to be exercised consecutively with each allowing for the purchase of up to 30 lifeboats for a total of up to 120 additional lifeboats. [1] Bidders were informed that the government would evaluate bids by adding the total price for all options to the total price for the base requirement. View Decision Matter of: Bollinger Machine Shop & Shipyard, Inc. File: B-261135.2 Date: September 1, 1995 The low bid under an invitation for bids for lifeboats and associated services and equipment calling for a base quantity and 4 option periods for additional quantities is not materially unbalanced where there is no credible evidence that the bid contains overstated prices for the lifeboats such that it could be considered mathematically unbalanced, and, in any case, the bid becomes low during the first option period. An agency's acceptance and consideration of a bid modification, received by a representative of the bidder from a facsimile machine located in the agency's mail room and then hand-delivered by the bidder's representative to the cognizant agency contract specialist, was not precluded by the solicitation's prohibition against facsimile submissions. Attorneys DECISION Bollinger Machine Shop & Shipyard, Inc. protests the award of a contract to Textron Marine and Land Systems, Inc., under invitation for bids (IFB) No. DTCG23-95-B-AMB001, issued by the United States Coast Guard, Department of Transportation, for motor lifeboats and associated equipment and services. We deny the protest. The IFB, issued on January 27, 1995, provided for the award of a firm, fixed-price contract for a base quantity of 20 motor lifeboats and associated equipment and services, with four 365-day option periods to be exercised consecutively with each allowing for the purchase of up to 30 lifeboats for a total of up to 120 additional lifeboats. [1] Bidders were informed that the government would evaluate bids by adding the total price for all options to the total price for the base requirement. The IFB contained the standard sealed bidding award clause, set forth at Federal Acquisition Regulation (FAR) Sec. 52.214-10, that, in pertinent part, cautions that a bid which is materially unbalanced may be rejected as nonresponsive. The Coast Guard received five bids by the bid opening date of April 20, ranging from Textron's low bid of $164,275,192, to the high bid of $230,653,493. The three lowest priced bids are as follows: Textron Peterson Bollinger Base Period $26,613,222 $26,870,422 $26,304,170 Option One $33,484,200 $36,389,412 $37,247,149 Option Two $31,888,630 $38,398,600 $38,135,910 Option Three $30,676,470 $39,328,482 $39,031,442 Option Four $41,612,670 $53,757,384 $58,744,381 Total $164,275,192 $194,744,300 $199,463,052 Bollinger protests that the agency should have rejected Textron's low bid and Peterson's second low bid as nonresponsive. [2] The protester first contends that Textron's bid should be rejected as unbalanced because Textron's unit prices for the lifeboats decline significantly from the base period through each of the option periods, whereas Bollinger's and Peterson's unit prices for lifeboats are relatively constant from the base period through each of the option periods. To be rejected as unbalanced, a bid must be both mathematically and materially unbalanced. DGS Contract Servs., Inc.; Inventory Accounting Servs., Inc., B-258429; B-258429.2, Jan. 19, 1995, 95-1 CPD Para. 27. A bid is mathematically unbalanced if it contains understated prices for some items and overstated prices for other items. Hampton Roads Leasing, Inc., B-250645.2, Feb. 1, 1993, 93-1 CPD Para. 486. On the other hand, the submission of a below-cost bid is not illegal, and the mere fact that a bid includes understated prices does not justify rejection of the bid. Id.; Wizard-Movers Elite, Inc.; Elkay Transp., Inc., B-255753; B-255753.2, Mar. 29, 1994, 94-1 CPD Para. 221. Accordingly, even a well-founded allegation of understated prices without evidence of overstated prices does not constitute a legally adequate basis for finding that a bid is mathematically unbalanced. Id. Textron's bid cannot be considered to be mathematically unbalanced because there is no credible evidence to suggest that any of its prices for the lifeboats are overstated.