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B-281383 1 (1999-02-01)

handle is hein.gao/gaocrptajgm0001 and id is 1 raw text is: 


oComptroller General
             of the United States
             Washington, D.C. 20548
             Decision




             Matter of: Todd Pacific Shipyards Corporation

             File:       B-281383

             Date:        February 1, 1999

             Dennis H. Walters, Esq., Karr, Tuttle, and Campbell, for the protester.
             Kimberly A. Kegowicz, Esq., Department of Transportation, for the agency.
             Katherine I. Riback, Esq., and James Spangenberg, Esq., Office of the General
             Counsel, GAO, participated in the preparation of the decision.
             DIGEST

             Solicitation for ship repair is improper where the record evidences that the stated
             foreseeable costs to be added to each bidder's bid price to determine the low
             bidder are grossly understated.
             DECISION

             Todd Pacific Shipyards Corporation protests invitation for bids (IFB) No. DTCG85-
             98-B-625M51, issued by the Department of Transportation, U.S. Coast Guard
             (USCG), for furnishing the necessary labor, materials, and facilities to dry-dock and
             repair the USCG Cutter Polar Star (an icebreaker).

             We sustain the protest.

             The IFB, issued on September 21, 1998, provides for award on the basis of price
             and price-related factors. The IFB lists a variety of costs that the government
             expects to incur in moving the ship to and from the contractor's shipyard; these
             anticipated costs, which according to the distance between the bidder's shipyard
             and the ship's location, are to be added for evaluation purposes to the bid prices to
             determine the lowest bidder. IFB § M.3. Among the foreseeable costs called out in
             the solicitation is [t]he cutter's fuel, maintenance and personnel cost for one (1)
             round trip from the cutter's home moorage at ... Seattle, [Washington] to
             contractor's place of performance at $172.30 per nautical mile. IFB § M.3.A.

             Todd protested to our Office before the November 17 bid opening, arguing that the
             $172.30 per nautical mile is outdated, and that the actual fuel, maintenance and
             personnel costs that will be necessary to move the Polar Star to and from the
             contractor's place of performance are much higher, such that the IFB contains no

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