Ocean Technical Services, Inc., B-284745, May 22, 2000

B-284745 May 22, 2000 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Award was to be made to the low responsive. The low bid was to be determined by adding to the bids five foreseeable cost factors to be incurred by the USCG as a result of having the work performed at the contractor's shipyard. Four bids were received by the January 7. American's bid as submitted was low at $284. Otech's was the highest at $332. Are considered capable of unrestricted open ocean transits. Since the Attu was a cutter not greater than 110 feet in length. The agency determined that the proper route for evaluation purposes was the shortest route possible while maintaining the vessel within 100 miles offshore. The contemplated performance period was not during hurricane season. View Decision Matter of: Ocean Technical Services, Inc. File: B-284745 Date: May 22, 2000 DIGEST Attorneys DECISION Ocean Technical Services, Inc. (Otech) protests the proposed award of a contract to American Shipyard under invitation for bids (IFB) No. DTCG80-00-B-3FC159, issued by the Department of Transportation, United States Coast Guard (USCG), for the drydock and repair of USCG cutter Attu. We deny the protest. The IFB contemplated award of a fixed-price contract, to be performed at the contractor's shipyard. IFB Secs. F.1(b), L.5. Award was to be made to the low responsive, responsible bidder. IFB Sec. M.2(a). The low bid was to be determined by adding to the bids five foreseeable cost factors to be incurred by the USCG as a result of having the work performed at the contractor's shipyard, rather than the home pier; these factors would vary depending on the location of the contractor's shipyard. IFB Secs. M.1(b), M.3. The protest concerns the calculation of one of these foreseeable cost factors, the distance factor--$16.90 per nautical mile--which reflected the cost of navigating the vessel from its home pier to the contractor's shipyard and back. IFB Sec. M.3. The IFB also provided for a 10-percent evaluation factor to be applied to bids other than those of small disadvantaged businesses (SDB). IFB Secs. M.1(b), I.3(b). Four bids were received by the January 7, 2000 bid opening. American's bid as submitted was low at $284,600, and Otech's was the highest at $332,784. To calculate the distance factor for all bidders, the agency applied its Internal Standard Operating Procedure (IntSOP) 042.14, Foreseeable Cost Evaluation Procedures, Agency Report, tab 21, which provides: The determination of transit mileage shall be based on the shortest route consistent with the vessel's physical capabilities. Factors to consider for safe navigation include: the cutter size, the cutter's stability and sea keeping capabilities, and the cutter's maximum range based on required fuel reserves during hurricane season/typhoon season or other seasonable weather patterns which affect operating instructions. All cutters greater than 110' in length with the exception of the 175' WLMs, 160' WLICs and CGC COURSEN, are considered capable of unrestricted open ocean transits; i.e., transiting a route greater than 100 miles offshore. IntSOP 042.14, Para. 8. The provision goes on to state that the above method for calculating mileage should be used "even if the cutter plans to deviate from the route used to evaluate foreseeable costs." Id. Since the Attu was a cutter not greater than 110 feet in length, the agency determined that the proper route for evaluation purposes was the shortest route possible while maintaining the vessel within 100 miles offshore. The contemplated performance period was not during hurricane season, so fuel reserve requirements were not applied. Contracting officials charted a route from San Juan, Puerto Rico, the Attu's home pier, to Jacksonville, Florida, and then up the coast, making two more intermittent ports, to American's shipyard at Newport, Rhode Island, for a total of 2,038 nautical miles (nm), or 4,076 nm round trip. /1/ After the five foreseeable cost factors were calculated and added to all bids, the 10-percent SDB evaluation factor was added to the three bids other than Otech's (since Otech was the only SDB bidder). American's bid remained low at $399,228.29, while Otech's became second low at $401,936.01. Otech argues that the distance factor added to American's bid is too low because it was calculated based on a route shorter than the one that the Attu will actually follow. In this regard, Otech maintains that the Attu will not actually sail from San Juan directly to Jacksonville, because there is a standing mission requirement for 110-foot cutters transiting north from San Juan to use the Old Bahamas Channel and the Santaren or Nicolas Channel, in order to maximize patrolling time in those channels, where there is a high level of drug and migrant activity. E-mail Message from LTJG James Brown to LCDR Todd Seaman, May 21, 1998.