Applicators, Inc.

B-270162 Feb 01, 1996 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Award to bidder submitting the lowest base bid is proper. Even though that bid is not the lowest aggregate bid inclusive of an additive item. Where the available funds are sufficient to cover only the base bid. Which together are identified as an additive item for construction of drainage. The Government will determine the amount of funds available for the project. (2) The low offeror shall be the [o]fferor that. (i) Is otherwise eligible for award. The [c]ontracting [o]fficer will skip that item and go to the next item from the bid schedule of priorities. (ii) Add that next item if an award may be made that includes that item and is within the available funds.". 000 was budgeted for the entire project. View Decision Matter of: Applicators, Inc. File: B-270162 Date: February 1, 1996 Award to bidder submitting the lowest base bid is proper, even though that bid is not the lowest aggregate bid inclusive of an additive item, where the available funds are sufficient to cover only the base bid. Attorneys DECISION Applicators, Inc. protests the award of a contract to Fort Myer Construction Corporation under invitation for bids (IFB) No. FA4416-95-B-A063, issued by the Department of the Air Force for the construction of a parking lot and drainage for Hangar 11 at Andrews Air Force Base, Maryland. We deny the protest. The IFB bid schedule, as amended, sought bid prices for contract line items numbers (CLIN) 0001 and 0002--identified as the base bid for the construction of the parking lot--and for CLINs 0003AA, 0003AB, and 0004--which together are identified as an additive item for construction of drainage. The IFB incorporated by reference the provision at Defense Federal Acquisition Regulation Supplement (DFARS) Sec. 252.236-7007, "Additive or Deductive Items (Dec 1991)," which states in pertinent part: "(a) The low offeror and the items to be awarded shall be determined as follows-- (1) Prior to the opening of bids, the Government will determine the amount of funds available for the project. (2) The low offeror shall be the [o]fferor that-- (i) Is otherwise eligible for award; and (ii) Offers the lowest aggregate amount for the first or base bid item, plus or minus (in the order stated in the list of priorities in the bid schedule) those additive or deductive items that provide the most features within the funds determined available. (3) The [c]ontracting [o]fficer shall evaluate all bids on the basis of the same additive or deductive items. (i) If adding another item from the bid schedule list of priorities would make the award exceed the available funds for all offerors, the [c]ontracting [o]fficer will skip that item and go to the next item from the bid schedule of priorities; and (ii) Add that next item if an award may be made that includes that item and is within the available funds." Funding in the amount of $658,000 was budgeted for the entire project. Bids were received from five bidders. Fort Myer submitted the lowest base bid of $644,170, while Applicators's base bid of $722,840 was next lowest. Considering the additive item, Applicators submitted the lowest aggregate bid of $1,247,089; Fort Myer's aggregate bid of $1,258,320 was next lowest. The Air Force advised Applicators at bid opening that it was the apparent low bidder based on the aggregate bid prices. Upon subsequent review, the Air Force determined that all of the aggregate bid prices exceeded the budgeted funding amount of $658,000. Since funding available for the procurement was insufficient to cover both the base bid and additive item, the Air Force determined that award would be made only for the base bid. As noted above, Fort Myer submitted the low base bid. Prior to award but subsequent to bid opening, the Air Force learned that additional funds were available for the procurement which increased the funding available to $1,168,470. The Air Force determined that the increased funding was still insufficient to allow award of the entire additive item; however, the agency determined that a portion of the additive item (CLIN 0003AA) could be awarded within the funding amount. Considering the bidder's prices for CLIN 0003AA, Fort Myer's bid of $926,170 remained low, while Applicators's bid of $1,007,506 was second low. The Air Force awarded a contract for the base bid and CLIN 0003AA to Fort Myer. This protest followed. Applicators argues that the agency did not determine the amount of funds available for the project prior to bid opening, as required by DFARS Sec. 252.236-7007, and that the agency improperly split the additive item after bid opening. Applicators contends that it should have received the award upon the basis of its low aggregate bid price. In response to the protest, the Air Force agrees that it incorrectly split the bid's additive item.