Marine Pollution Control Corporation

B-270172 Feb 13, 1996 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Where offerors are required to propose on a firm. Fixed-prices were requested for CLIN No. 0001. Time-and-materials CLINs (Nos. 0002 and 0004) are not relevant to this decision.). In which technical quality was more important than price. Then MPC will bill as extras the additional quantities per the unit pricing" provided in the cost breakdown information. Fixed prices for CLIN Nos. 0001 and 0003 and advised MPC that "[o]nce the contract is awarded there will be no increases made to CLIN 0001 and CLIN 0003 as a result of inaccurate estimates on your part.". The two key factors that are truly beyond the control of MPC are inclement weather and the Coast Guard's use of the MARISAT unit. Inclement weather resulting in suspended operations will have a profound impact on overall project cost . . . View Decision Matter of: Marine Pollution Control Corporation File: B-270172 Date: February 13, 1996 Where offerors are required to propose on a firm, fixed-price basis in a negotiated procurement, a proposal, which does not contain an unequivocal offer to perform at a firm, fixed price, cannot be accepted for award. Attorneys DECISION Marine Pollution Control Corporation (MPC) protests the award of a contract to DonJon Marine Co., Inc. under request for proposals (RFP) No. DTCG84-95-R-HYR752, issued by the United States Coast Guard, for the removal of oil from a sunken tank barge. MPC argues that the Coast Guard made various errors in evaluating its proposal, including determining that it failed to offer firm, fixed prices, and that the Coast Guard awarded the contract to a firm which suffers from an organizational conflict of interest. We deny the protest. The tank barge Cleveco sank in Lake Erie in 1942. The RFP requires the contractor to remove an estimated 164,750 gallons of oil from the barge, to sell or otherwise dispose of any recovered oil, and to clean the site. The RFP contemplated a combination firm, fixed-price and time-and-materials contract to perform these services. In this regard, the RFP pricing schedule contained four contract line items (CLIN); lump-sum, fixed-prices were requested for CLIN No. 0001, "Removal of Oil," and CLIN No. 0003, "Clean Up/Remediation Services." (The non-fixed-price, time-and-materials CLINs (Nos. 0002 and 0004) are not relevant to this decision.) The RFP provided for an evaluation of the realism and reasonableness of the prices proposed, and asked offerors to submit cost breakdown information for this purpose. The RFP established a "best value" evaluation scheme, in which technical quality was more important than price. MPC's initial proposal provided prices for both fixed-priced CLINs, as well as cost breakdown information showing how it arrived at these prices. In the preface to its cost breakdown information, the protester stated that it had made assumptions regarding the site conditions it expected to encounter and it had estimated certain project costs based upon these assumptions. For example, the protester estimated that its vessels would consume 32,000 gallons of fuel; that it would pump 100,000 gallons of water in addition to the oil; that it would experience 3 "down days" owing to inclement weather; and that it would operate a MARISAT satellite-based communication system for a total of 20 hours. The protester stated that its proposed fixed prices did not account for costs in excess of the stated estimated quantities and that, "[i]f the requirements for each item exceed the amounts provided herein, then MPC will bill as extras the additional quantities per the unit pricing" provided in the cost breakdown information. The agency determined that the protester had improperly qualified its firm, fixed prices. Consequently, the Coast Guard directed MPC during discussions to propose firm, fixed prices for CLIN Nos. 0001 and 0003 and advised MPC that "[o]nce the contract is awarded there will be no increases made to CLIN 0001 and CLIN 0003 as a result of inaccurate estimates on your part." In response, the protester's best and final offer (BAFO) advised: "MPC provided firm fixed price offers for CLINs 0001 and 0003. As stated in our proposal, assumptions had to be made with regard to various aspects of the work to be performed. While MPC did outline the assumptions made in our cost proposal, the two key factors that are truly beyond the control of MPC are inclement weather and the Coast Guard's use of the MARISAT unit. Inclement weather resulting in suspended operations will have a profound impact on overall project cost . . .