Marine Metal, Inc., B-292445.3, December 19, 2003

B-292445.3 Dec 19, 2003 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights A bid that expressly states it is a package bid for the complete dismantling of two named ships is an "all or none" bid for those ships and cannot be considered for award of only one of the ships. The agency advised the bidders: Note that the Santa Isabel is currently also being considered for award under other contracting options available to the Maritime Administration. Bid opening was held on June 10. A cover letter submitted with the latter bid stated the following: The enclosed package bid is for the complete dismantling of two vessels. Marine Metal's package bid for both vessels represented the second-low bid if contracts for both vessels were awarded under the solicitation. The individual prices for each of these vessels under the package bid was also lower than the second-low individual bids for each of these vessels. View Decision Marine Metal, Inc., B-292445.3, December 19, 2003 DIGEST Attorneys DECISION Marine Metal, Inc. protests the award of a contract to Bay Bridge Enterprises, LLC under invitation for bids (IFB) No. DTMA1B03015, issued by Maritime Administration, Department of Transportation, for dismantling and disposing of four ships located in the James River Reserve Fleet, Virginia. We deny the protest. The IFB, issued February 21, 2003, used the two-step sealed bidding process under Federal Acquisition Regulation (FAR) Subpart 14.5. Step one solicited technical proposals to dismantle one or more of the following four ships: the Santa Isabel, the Mormacdawn, the Santa Elena and the Catawba Victory. The offerors who submitted technically acceptable step one proposals would be eligible for the step two sealed bid price competition. Marine Metal, Bay Bridge, ESCO Marine, and two other offerors submitted technically acceptable step one proposals. On May 27, the agency issued amendment 0002 to the IFB, which solicited the step two sealed bids. The IFB permitted bids on one, all or any combination of ships; however, "a separate bid price must be submitted for each vessel bid." IFB amend. 2, Secs. L-9, L-10.B. The IFB also provided, "A separate bid must be submitted for each vessel combination offered by any [bidder]," and "the government reserves the right to award any combination of the vessels to one or multiple responsive, responsible [bidders], whose bid offers the lowest overall price." Id. Sec. L-4. Prior to bid opening, the agency advised the bidders: Note that the Santa Isabel is currently also being considered for award under other contracting options available to the Maritime Administration. IFB amend. 3. Bid opening was held on June 10. Marine Metal submitted three bids--one for the Catawba Victory, one for the Santa Isabel, and one for both the Catawba Victory and the Santa Isabel. A cover letter submitted with the latter bid stated the following: The enclosed package bid is for the complete dismantling of two vessels, the "Santa Isabel" and the "Catawba Victory" . . . . Agency Report, Tab K, Marine Metal Bid, at 1. /1/ The other bidders submitted bids with prices for each of the four ships. ESCO submitted the low bids for both the Catawba Victory and the Santa Isabel. Bay Bridge submitted the second-low bid for the Catawba Victory, and another bidder submitted the second-low bid for the Santa Isabel. Marine Metal's individual bids for the Catawba Victory and the Santa Isabel represented the third-low bids for each of those vessels. However, Marine Metal's package bid for both vessels represented the second-low bid if contracts for both vessels were awarded under the solicitation, and the individual prices for each of these vessels under the package bid was also lower than the second-low individual bids for each of these vessels. On July 7, the agency awarded a contract to ESCO for dismantling the Catawba Victory and all of the other ships, except for the Santa Isabel. On July 25, the agency awarded a contract for dismantling the Santa Isabel under another solicitation. On August 7, after ESCO failed to post required bonds, the agency terminated ESCO's contract for the Catawba Victory. The agency subsequently notified Marine Metal that its package bid for both vessels was contingent on the bidder receiving a contract for dismantling both vessels, and that, since the Santa Isabel was removed from the IFB, the package bid could no longer be considered. On August 27, the agency awarded a contract for the Catawba Victory to Bay Bridge, the second lowest bidder for that ship.