Sample's Shipyard, B-280452, October 1, 1998

B-280452 Oct 01, 1998 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Award was to be made to the low responsive bid submitted by a responsible bidder. The low bid was to be determined by adding extended prices for all line items to five foreseeable cost factors to be incurred by the USCG as a result of having the work performed at a shipyard other than the homepier. Three bids were received by the May 1 bid opening. Was low at $292. While Otech's was second low at $316. The period during which the Vashon was to be moved. So award was made to Otech on June 17. /2/ The protester's argues that the distance factor calculation for its bid is incorrect. Because it is based on a route longer than the "most direct route consistent with the physical capabilities of the vessel. View Decision Matter of: Sample's Shipyard File: B-280452 Date: October 1, 1998 DIGEST Attorneys DECISION Sample's Shipyard protests the award of a contract to Ocean Technical Services, Inc. (Otech) under invitation for bids (IFB) No. DTCG80-98-B-3FC799, issued by the Department of Transportation, United States Coast Guard (USCG) for the drydock and repair of the USCG cutter Vashon. /1/ We deny the protest. The IFB contemplated award of a fixed-price, indefinite-delivery, indefinite-quantity contract, to be performed at the contractor's shipyard. Award was to be made to the low responsive bid submitted by a responsible bidder. The low bid was to be determined by adding extended prices for all line items to five foreseeable cost factors to be incurred by the USCG as a result of having the work performed at a shipyard other than the homepier; these would vary based on the location of the contractor's shipyard. IFB Sec. M.1(b), M.3. The protest concerns one of these factors, the distance factor--$16.90 per nautical mile--which reflected the USCG's facility costs to navigate the vessel to and from the contractor's shipyard. IFB Sec. M.3. Three bids were received by the May 1 bid opening. The protester's total bid as submitted--before addition of the distance factor--was low at $292,368, while Otech's was second low at $316,954. In determining the amount to be added to the bids under the distance factor, the agency developed a route from the homepier at San Juan, Puerto Rico, to each bidder's shipyard. For the protester's bid, because USCG directives prohibit long ocean transits and require a 70-percent fuel onboard state during the Atlantic Ocean hurricane season (June 1 through November 30), the period during which the Vashon was to be moved, contracting officials calculated a route which would keep the vessel close to land and permit frequent refueling. This route measured 2,442 nautical miles (one way), based on the ship's sailing from San Juan to Guantanamo Bay, Cuba, on to Miami, Florida, and then continuing up the U.S. east coast to Boothbay Harbor, Maine, stopping four more times to refuel. This distance produced a total evaluated bid of $386,585.92, $2,499.36 higher than Otech's total evaluated bid, $384,086.56, and so award was made to Otech on June 17. /2/ The protester's argues that the distance factor calculation for its bid is incorrect, because it is based on a route longer than the "most direct route consistent with the physical capabilities of the vessel," the standard on which the route was to be determined. USCG Legal Memorandum at 3. The protester maintains that the Vashon is physically capable of ocean transits, and therefore can sail directly from Puerto Rico to Fort Macon, North Carolina, refuel and continue up to Boston, refuel again and continue up to Boothbay Harbor. The protester maintains that using this route would permit the vessel to maintain 50-percent fuel capacity at all times, while reducing the distance to approximately 2,075 nautical miles. Basing the distance factor on this mileage would make the protester's evaluated bid low, at $374,181.32. We will not question an agency's determination of its needs and the best method of accommodating those needs unless that determination has no reasonable basis. TLC Sys., B-277095, Sept. 2, 1997, 97-2 CPD Para. 61 at 3. We find that the record establishes a reasonable basis for the USCG's determination that it would need to use the longer route to the protester's shipyard. As indicated above, the choice of route was dictated largely by consideration of the risk to the vessel and crew. The agency explains that, while 110-foot cutters such as the Vashon are capable of deepwater operations, i.e., those which occur more than 50 miles from land, as a matter of policy they generally are restricted from routine independent operations or unescorted transits which take them more than 200 miles from shore.