B-311332; B-311332.2, Corcel Corporation, June 13, 2008

B-311332; B-311332.2, Corcel Corporation, June 13, 2008 TITLE: B-311332; B-311332.2, Corcel Corporation, June 13, 2008 BNUMBER: B-311332; B-311332.2 DATE: June 13, 2008 ******************************************************* B-311332; B-311332.2, Corcel Corporation, June 13, 2008 Decision Matter of: Corcel Corporation File: B-311332; B-311332.2 Date: June 13, 2008 Ray Corona for the protester. Warren D. Leishman, Esq., Agency for International Development, for the agency. Eric M. Ransom, Esq., and Christine S. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Agency reasonably concluded that it had a compelling reason to cancel an invitation for bids after bid opening where the solicitation's specifications were inadequate to meet the agency's needs. 2. Agency did not improperly make an award during the pendency of the protest where the order was issued under an existing indefinite-delivery/indefinite-quantity contract for a different type of product. DECISION Corcel Corporation protests the decision of the United States Agency for International Development (USAID) to cancel, after the opening of the bids, that portion of invitation for bids (IFB) No. 294-2008-001 seeking bids for valves. Corcel also protests the agency's replacement procurement for the valves under an existing indefinite-delivery/indefinite-quantity (ID/IQ) contract. We deny the protests. BACKGROUND The challenged procurement is for approximately 62 kilometers of pipe and pipeline supplies intended to provide drinking water to the south Nablus villages in the West Bank. According to the agency, there are currently no fixed water supplies in the 10 villages targeted by this procurement. The installation of this pipeline will provide over 100,000 households with better access to clean water. USAID issued the IFB on December 17, 2007, soliciting sealed bids for three "bills of quantities" (BOQ): pipes, valves, and fittings. Bidders were free to bid on any or all items listed on these three BOQs. IFB at L.8. The IFB included a preference for United States suppliers. IFB Amendment Notice 1. As relevant to this protest, "BOQ B" of the solicitation set forth the requirement for valves. This consisted of seven types of Class 300 buried gate valves, 215 in total. With regard to the specific technical requirements, BOQ B stated that a bidder must "[s]upply flanged Gate Valves with all required accessories and parts for buried applications." IFB, Attachment 3D, BOQ B, at 1. In detailed technical specifications attached to BOQ B, USAID also listed further requirements for Class 300 gate valves for buried applications. These specifications stated that Class 300 valves must be "[s]uitable for buried water service," and that the approved manufacturers and products were "Velan" valves, or equal. Id. at 5. The BOQ and technical specifications were provided to USAID engineers by the Palestinian Water Authority (PWA). Contracting Officer's Statement of Facts, at 2. The contracting officer has represented that these specifications are standard and widely used in the West Bank, and that since the year 2000, most local organizations have been using these specifications. Id. As a measure of quality assurance, USAID engineers sent the BOQ and specifications to CH2M Hill, USAID's construction management firm in the West Bank. Engineer's Statement of Facts, at 2. USAID and CH2M Hill suggested minor changes in the specifications, and obtained the PWA's agreement before incorporating BOQ B and specifications into the solicitation package. Id. Three firms submitted bids in response to the IFB by the January 18, 2008 bid opening. Two of the firms bid on all items on the three BOQs, while the third firm, Corcel, bid on BOQ B only. With regard to BOQ B, one firm bid a foreign product, and among the two firms bidding United States products, Corcel bid the lowest price. Contracting Officer's Statement of Facts, at 2-3. However, upon review, USAID's engineers determined that Corcel had not provided sufficient information in its bid to enable USAID to determine whether the proposed valves met the required specifications. Engineer's Statement of Facts, at 2. On January 28, USAID requested that Corcel provide additional information to confirm that its offered valves were suitable for buried water service, and advised Corcel that a "non-rising stem valve is the only type valve that should be used in buried applications."[1] Engineer's Statement of Facts, Tab A. Corcel responded on the same day that it proposed to provide "outside screw and yoke" Class 300 gate valves, and disputed that NRS valves were the only valves suitable for buried applications.