Valley Forge Flag Company, Inc., B-283130, September 22, 1999

B-283130 Sep 22, 1999 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights DIGEST Agency improperly awarded contract to bidder whose bid was nonresponsive because it took exception to the delivery schedule required by the solicitation. Valley Forge contends that Allied's bid should have been rejected as nonresponsive because it took exception to the delivery schedule required by the solicitation. The solicitation specified that the contract term was from October 1. That during that time period "VA will place orders" for a minimum of 305. '" /2/ which was incorporated by reference in the IFB. The solicitation advised as follows: If the offeror is unable to meet the desired delivery schedule. The offeror's proposed delivery schedule must not extend the delivery period beyond the time for delivery in the Government's required delivery schedule as follows: REQUIRED DELIVERY SCHEDULE ALL ITEMS WITHIN 45 DAYS AFTER RECEIPT (after first delivery) OF ORDER (ARO) Offers that propose delivery of a quantity under such terms or conditions that delivery will not clearly fall within the applicable required delivery period specified above. View Decision Matter of: Valley Forge Flag Company, Inc. File: B-283130 Date: September 22, 1999 DIGEST Attorneys DECISION Valley Forge Flag Company, Inc. protests the award of a contract to Allied Materials and Equipment Co., Inc. under invitation for bids (IFB) No. 101-01-99, issued by the Department of Veterans Affairs (VA). Valley Forge contends that Allied's bid should have been rejected as nonresponsive because it took exception to the delivery schedule required by the solicitation. We sustain the protest. The IFB, issued as a small business set-aside on March 31,1999, contemplated the award of a fixed-price, indefinite-delivery, indefinite-quantity contract /1/ for an estimated 321,000 interment (burial) flags. IFB Sec. B.1. The solicitation specified that the contract term was from October 1, 1999 through September 30, 2000, IFB Sec. F.1, and that during that time period "VA will place orders" for a minimum of 305,000 and a maximum of 385,000 flags. IFB Sec. B.2. The solicitation provided that the "total contract performance period shall not exceed March 30, 2001, in accordance with FAR Clause 52.216-22 'Indefinite Quantity,'" /2/ which was incorporated by reference in the IFB. IFB Sec. F.1. The IFB advised that the first delivery under the contract would be required no sooner than 180 days after contract award, IFB Secs. H.3, F.2, and that the agency desired delivery of subsequent orders within 30 days of receipt of the order. IFB Sec. F.2. In the alternative, the solicitation advised as follows: If the offeror is unable to meet the desired delivery schedule, it may without prejudicing evaluation of its offer, propose a delivery schedule below. However, the offeror's proposed delivery schedule must not extend the delivery period beyond the time for delivery in the Government's required delivery schedule as follows: REQUIRED DELIVERY SCHEDULE ALL ITEMS WITHIN 45 DAYS AFTER RECEIPT (after first delivery) OF ORDER (ARO) Offers that propose delivery of a quantity under such terms or conditions that delivery will not clearly fall within the applicable required delivery period specified above, will be considered nonresponsive and rejected. If the offeror proposes no other delivery schedule, the desired delivery schedule above will apply. IFB Sec. F.2. The IFB incorporated by reference FAR Sec. 52.216-19 with respect to order limitations, providing here, in relevant part, for a minimum order of 10 flags and a maximum single order (or series of orders from the same ordering office within 15 days) of 305,000 flags. IFB ch. C, part 2, at 1. The IFB did not contain any other limitations on the placement of orders. Seven bids, including Allied's and Valley Forge's, were received by the amended May 18 bid opening. Contracting Officer's Statement at 1. The low bid was rejected as nonresponsive. Allied's bid of $23.98 per unit ($7,697,580 for the 321,000 estimated units) was next low and Valley Forge's bid of $24.54 per unit ($7,877,340 for the 321,000 estimated units) was third low. As a delivery schedule, Allied proposed in its bid that it would deliver 46,782 flags "within 180 days after receipt of contract" and, for all subsequent orders, it would deliver "4,873 per week until completed." Agency Report, exh. 3, Allied Bid, Sec. F.2. The contracting officer determined that Allied's proposed delivery schedule was responsive on the basis that Allied could deliver the estimated quantity of flags before March 30, 2001. Specifically, using the estimated quantity of 321,000 flags and a projected award date of June 23, the contracting officer calculated the first delivery (46,782 flags) on December 20, 1999 (180 days after the contract award date) and weekly deliveries of 4,873 flags thereafter, beginning on December 27.