D.B.I. Waste Systems, Inc., B-285049, July 10, 2000

B-285049 Jul 10, 2000 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Where the bid commits the contractor to perform in accordance with the precise IFB requirements at an evaluated total price that is low under all plausible circumstances. The work required for the Boston facility was divided into nine CLINs for the base and each option period. /1/ Id. Bidders were to provide a monthly and extended price for the rental of a large pull-away refuse container. Bidders were to insert unit and extended prices per "pull" per container. Certain prospective bidders complained about the requirement to submit a price per pull for the larger pull-away containers on the basis that pricing per pull is inconsistent with industry practice. They indicated that they would have to bid each pull on the assumption that the containers were full. View Decision Matter of: D.B.I. Waste Systems, Inc. File: B-285049 Date: July 10, 2000 DIGEST Attorneys DECISION D.B.I. Waste Systems, Inc. protests the rejection of its bid as nonresponsive and the proposed award of a contract to Waste Systems International, Inc. under invitation for bids (IFB) No. 523-17-00, issued by the Department of Veterans Affairs (VA) for refuse removal services at certain facilities within the VA Boston Healthcare System. The agency rejected D.B.I.'s bid as nonresponsive for failure to include separate line item prices as called for under the amended bid schedule. We sustain the protest. The IFB, issued February 2, 2000, provided for the award of fixed-price requirements contracts for refuse removal services at three Boston-area facilities including one facility in Boston, one in West Roxbury and one in Brockton, each for a 6-month base period with three 1-year options. IFB amend. 1, Revised Bid Schedule, at 2-17. The IFB provided for either a single award or multiple awards and permitted bidders to bid on one, two or all three of the facilities. IFB at 31. Award(s) would be based upon the aggregate price for the base and option periods for each facility. Id. Under the solicitation as initially issued, the bid schedule divided the work to be performed into a total of 148 contract line items (CLIN) for the three facilities for the base period and each option period. IFB, Original Bid Schedule, at 2-17. Each CLIN included estimated requirements for the particular work specified. As relevant here, the work required for the Boston facility was divided into nine CLINs for the base and each option period. /1/ Id. One CLIN requested a monthly and extended price for the rental of a hydraulic lift. Under each of four other CLINs, bidders were to provide a monthly and extended price for the rental of a large pull-away refuse container. Under each of the remaining four CLINs, bidders were to insert unit and extended prices per "pull" per container, with monthly estimated quantities provided. /2/ Id. Certain prospective bidders complained about the requirement to submit a price per pull for the larger pull-away containers on the basis that pricing per pull is inconsistent with industry practice, and that they would not be able to accurately price their bids. Specifically, because they had to pay disposal fees on a price-per-ton basis, while the agency asked for a price per pull, they indicated that they would have to bid each pull on the assumption that the containers were full. Contracting Officer's Statement at 1. In response, on February 15, the VA issued amendment No. 1, which revised the bid pricing schedule. Id. Instead of having one CLIN for the rental fee and one CLIN for the price per pull for a container, the revised pricing schedule had one CLIN per container within which there were sub-CLINs calling for bidders to separately insert a rental fee, a price per pickup for hauling the refuse, and a price per ton for disposing of the refuse. IFB, amend. 1, Revised Bid Schedule, at 2-17. The amended bid schedule for the Boston facility contained five CLINs for the base and each option period. Four of the CLINs listed the size and location of a pull-away container and the service schedule for that container and included three sub-CLINs calling for bidders to enter a unit and extended rental fee, a hauling charge, and a disposal charge for that container. Id. at 2. The pricing structure for each container was as follows: Service Estimated Unit Unit Price Total Quantity Rental Fee 6 Month $_____ $_____ Hauling Charge 100 Each $_____ $_____ Disposal Charge 639 Tons $_____ $_____ Id. Using historical data provided by the incumbent contractor, the agency estimated that the Boston facility would require the removal of 1,353 tons of refuse for the base period and 2,705 tons for each option period. Based on this data, the agency estimated that it would require 255 hauls in the base period and 490 hauls in each option period for a total of 1,725 hauls. Contracting Officer's Statement at 1; IFB amend. 1, Revised Bid Schedule, at 2-17.