Metermod Instrument Associates, Inc.

B-266145 Jan 25, 1996 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Protest that agency improperly disclosed protester's price during conduct of procurement is denied where allegation is unsupported by any evidence in the record. The RFQ in question was issued by DESC under the simplified procedures initiated by the agency for purchases up to $25. 000 in which RFQs are transmitted directly to an electronic bulletin board (EBB) maintained by the agency and generally remain on the EBB for 30 days. Firms desiring access to the EBB to review the RFQs and to submit quotes are required to register with the agency. MK Electronics's handwritten quote was dated August 10 and stated that $586.95 was the firm's "[b]est & [f]inal price.". A purchase order for the 33 wattmeters was issued to MK Electronics on August 21. View Decision Matter of: Metermod Instrument Associates, Inc. File: B-266145 Date: January 25, 1996 Protest that agency improperly disclosed protester's price during conduct of procurement is denied where allegation is unsupported by any evidence in the record. Attorneys DECISION Metermod Instrument Associates, Inc. protests the issuance of purchase order No. SPO920-95-M-124 to MK Electronics under a request for quotations (RFQ) issued by the Defense Electronics Supply Center (DESC), Defense Logistics Agency, for 33 wattmeters used in a load bank tester. Metermod alleges that the agency disclosed its price to MK Electronics and failed to either inform Metermod of an extended closing date for quotations or ask Metermod for a best and final offer (BAFO). We deny the protest. The RFQ in question was issued by DESC under the simplified procedures initiated by the agency for purchases up to $25,000 in which RFQs are transmitted directly to an electronic bulletin board (EBB) maintained by the agency and generally remain on the EBB for 30 days. Firms desiring access to the EBB to review the RFQs and to submit quotes are required to register with the agency. Once registered, vendors can access the EBB by contacting an Electronic Data Interchange (EDI) service provider, [1] or through the vendors' own personal computers by dialing a telephone number or logging on to the Internet. Currently, vendors can provide quotes in response to RFQs issued by DESC under these automated procedures or in paper format. Here, the RFQ, posted on the EBB during May 1995, requested quotations by May 26 for 11 wattmeters, stock number PR YPE 95009-00094. Metermod quoted a price of $694 per unit; MK Electronics quoted a price of $739.10 per unit. MK Electronics also quoted a price of $713.40 per unit for 25 wattmeters. Metermod responded via the EBB; MK Electronics submitted a paper quote. DESC subsequently issued a second RFQ with a requested response date of July 28 for 22 of the same wattmeters. Subsequently, the agency consolidated the two RFQs. The DESC contract specialist contacted both Metermod and MK Electronics and requested that the firms quote on 33 wattmeters. Metermod submitted via the EBB on July 27 a unit price of $587; MK Electronics submitted a paper quote of $586.95 per unit. MK Electronics's handwritten quote was dated August 10 and stated that $586.95 was the firm's "[b]est & [f]inal price." A purchase order for the 33 wattmeters was issued to MK Electronics on August 21. Metermod protested to our Office on September 14. Metermod protests that MK Electronics' price reduction to within $.05 per unit of Metermod's price cannot be a coincidence and argues that "[i]t is more likely than not" that the DESC contract specialist improperly informed MK Electronics of the price quoted by Metermod and "is biased in favor of MK Electronics." The protester argues that MK Electronics's price reduction is suspect since MK Electronics offered only a $25.70 price reduction per unit from $739.10 for 11 units to $713.40 for 25 units, yet reduced its price $126.45 per unit after being contacted by the contract specialist and asked to quote a price for only 8 additional units. The protester also alleges that DESC failed to inform Metermod that the closing date for the submission of quotes had been extended and failed to request a BAFO from Metermod although the agency did request a BAFO from MK Electronics. [2] While Metermod contends that MK Electronics's price reduction to within $.05 per unit cannot be a coincidence, the record contains no evidence of bias on behalf of the awardee and no evidence that Metermod's prices were disclosed. We recognize that the closeness of submitted quotes such as occurred in this case can raise an apprehension that quotes received via electronic means are not protected from electronic "eavesdropping." Agencies must, of course, take appropriate steps to ensure the security of business information that is transmitted via electronic means. National Institute of Standards and Technology-Use of Electronic Data Interchange Technology to Create Valid Obligations, 71 Comp.Gen.