B-123810, JUL. 1, 1955

B-123810, JUL. 1, 1955

TO OSWALD SCHICKER MANUFACTURING COMPANY:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF APRIL 26, 1955, PROTESTING THE AWARD OF A CONTRACT TO ANOTHER CONCERN, AS THE LOWEST RESPONSIBLE BIDDER UNDER INVITATION NO. QM-36-030-55-696, ISSUED ON MARCH 31, 1955, BY THE PHILADELPHIA QUARTERMASTER DEPOT, FOR THE FURNISHING OF 147,000 SHOULDER SLEEVE INSIGNIA OF THE UNITED STATES ARMY.

THE RECORD SHOWS THAT BIDS WERE REQUESTED FOR THE FURNISHING OF 297,000 INSIGNIA; THAT AN AWARD FOR DELIVERY OF 150,000 UNITS WAS MADE TO TIEGER EMBROIDERY, INC., WEST NEW YORK, NEW JERSEY, AT A UNIT PRICE OF $0.03; AND THAT AN AWARD FOR DELIVERY OF THE BALANCE OF 147,000 UNITS WAS MADE TO EVEREADY EMBROIDERY, INC., JERSEY CITY, NEW JERSEY, AT A UNIT PRICE OF $0.034. YOU PROTESTED THE LATTER AWARD ON THE GROUND OF YOUR LOWER UNIT PRICES OF $0.0324, $0.0329 AND $0.0334 ON THE THREE LOTS DUE FOR DELIVERY IN JULY, AUGUST, AND SEPTEMBER, 1955, RESPECTIVELY. ALSO, IT IS STATED IN YOUR LETTER OF APRIL 26, 1955, THAT "WE ARE A RESPONSIBLE BIDDER AND OUR CURRENT CONTRACTS ARE NOT DELINQUENT," AND THAT "AWARD WAS MADE TO A CONTRACTOR WHO IS PRESENTLY DELINQUENT.'

IT HAS BEEN REPORTED BY THE DEPARTMENT OF THE ARMY THAT, BECAUSE YOUR COMPANY HAS A POOR RECORD OF PERFORMANCE UNDER PREVIOUS GOVERNMENT CONTRACTS FOR SIMILAR ITEMS, THE CONTRACTING OFFICER DETERMINED THAT YOUR COMPANY WAS NOT A RESPONSIBLE BIDDER AND, ACCORDINGLY, REJECTED ITS BID. DETAILED INFORMATION WAS FURNISHED CONCERNING YOUR PERFORMANCE UNDER SEVEN CONTRACTS AWARDED TO YOU BY THE QUARTERMASTER CORPS DURING THE PAST YEAR, CONSIDERATION OF WHICH LEADS TO THE CONCLUSION THAT THERE IS NO PROPER BASIS FOR TAKING EXCEPTION TO THE CONTRACTING OFFICER'S ACTION IN THE CASE. CONTRARY TO YOUR STATEMENT THAT YOUR CURRENT CONTRACTS ARE NOT DELINQUENT, THE RECORD INDICATES THAT, AS OF MAY 15, 1955, THERE WERE SUBSTANTIAL DELINQUENCIES IN DELIVERY UNDER YOUR CONTRACTS NOS. DA-36-030- QM-5026, DA-36-030-55-QM-4723 AND DA-30-030-55-QM-4759. ONLY ONE OF THE SEVEN CONTRACTS APPEARS TO HAVE BEEN PERFORMED ACCORDING TO ITS ORIGINAL TERMS.

WHILE THE RECORD SHOWS THAT, AS OF MAY 16, 1955, EVEREADY EMBROIDERY, INC., WAS DELINQUENT IN DELIVERY OF APPROXIMATELY 70,000 UNITS OUT OF A TOTAL REQUIRED DELIVERY OF 2,535,279 UNITS UNDER A CONTRACT ENTERED INTO ON NOVEMBER 10, 1954, THE COMPANY'S HISTORY OF PAST PERFORMANCE IS REPORTED TO HAVE BEEN GENERALLY SATISFACTORY, AND THE RELATIVELY SLIGHT DEFICIENCY IN PERFORMANCE UNDER THE CONTRACT OF NOVEMBER 10, 1954, IS NOT A SUFFICIENT BASIS FOR DISTURBING THE CONTRACTING OFFICER'S DETERMINATION THAT THE COMPANY WAS A RESPONSIBLE BIDDER UNDER INVITATION NO. QM-36-030- 55-696.

UNDER THE SETTLED RULE THAT THE RESPONSIBILITY OF BIDDERS IS A MATTER PRIMARILY FOR DETERMINATION BY THE ADMINISTRATIVE OFFICERS, WHOSE DECISIONS WILL NOT BE DISTURBED EXCEPT FOR CLEAR ABUSE OF ADMINISTRATIVE DISCRETION, WE PERCEIVE NO PROPER GROUND FOR SETTING ASIDE THE AWARD OBJECTED TO BY YOU.