Enco Dredging, B-284107, February 22, 2000

B-284107 Feb 22, 2000 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Bid was responsive notwithstanding bidder's failure to limit its mobilization/demobilization price to 5 percent of total bid price where limit was not mandatory. Bid was not unbalanced where agency reasonably concluded that. Even if prices were unbalanced. There was no unacceptable risk to government. Since total price for work that was ordered was low and would remain low for any additional quantities ordered. Enco basically contends that Matteson's bid should have been rejected as nonresponsive. Prices were to include the furnishing of all labor. Bidders were guaranteed a minimum of the 400. Bids were to be evaluated based upon the total bid. Award was to be made to the responsible bidder submitting the lowest responsive total bid. View Decision Matter of: Enco Dredging File: B-284107 Date: February 22, 2000 DIGEST Attorneys DECISION Enco Dredging protests the award to L.W. Matteson, Inc. of an indefinite-delivery, indefinite-quantity contract under invitation for bids (IFB) No. 99-SI-34-0412, issued by the Yuma (Arizona) Area Office of the Bureau of Reclamation (BOR), Department of the Interior, to obtain maintenance dredging of the Colorado River above the Imperial Dam. Enco basically contends that Matteson's bid should have been rejected as nonresponsive. We deny the protest. The IFB requested the submission of a lump-sum price for line item No. 1, mobilization/demobilization, and unit and extended prices for the two sub-items of line item No. 2. Prices were to include the furnishing of all labor, material, equipment, and incidentals required for the dredging and for the delivery of the dredged material to a designated disposal site. The first sub-item (2a) covered 400,000 cubic yards of dredging and the second sub-item (2b) covered up to 850,000 additional cubic yards of dredging. Bidders were guaranteed a minimum of the 400,000 cubic yards of dredging, with the possibility of delivery orders for up to the additional 850,000 cubic yards of dredging if funding became available. IFB, Foreword, at 1. Bids were to be evaluated based upon the total bid, and award was to be made to the responsible bidder submitting the lowest responsive total bid. IFB, Sec. L.12(a), at L-9, and Sec. M.2(a), (b), at M-1. The IFB also contained the clause at Federal Acquisition Regulation (FAR) Sec. 52.214-19, which is applicable to construction solicitations. Paragraph (d) of that clause provides as follows: The Government may reject a bid as nonresponsive if the prices bid are materially unbalanced between line items or subline items. A bid is materially unbalanced when it is based on prices significantly less than cost for some work and prices which are significantly overstated in relation to cost for other work, and if there is a reasonable doubt that the bid will result in the lowest overall cost to the Government even though it may be the low evaluated bid, or if it is so unbalanced as to be tantamount to allowing an advance payment. IFB Sec. L.12, at L-9. The IFB also provided that the line item No. 1 price "should not exceed 5% of the total contract price" and that payment of these costs would be governed by the section H-- "Payment for Mobilization and Preparatory Work"--clause. Id., Sec. B.1(h), at B-1. Subsection H.3, which provides for the manner in which these costs would be paid--both in instances where the price bid for line item No. 1 constituted no more than 5 percent of the total price bid and where the price bid exceeded the 5-percent limit, states in pertinent part as follows: (a) General. The contract line item for mobilization and preparatory work should not exceed 5 percent of the total contract amount (see (d)(3), (4), and (5) below concerning payments exceeding 5 percent) and shall be used by the Government to make payment to the Contractor in accordance with this clause . . . . . . . . . (d) Payment. Payment for mobilization and preparatory work under paragraph (a) of this clause shall be made at the contractor lump-sum price bid for this item as contained in the Schedule. Progress payments for mobilization and preparatory work shall be made as follows-- . . . . .