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B-202647.2 1 (1981-10-02)

handle is hein.gao/gaobadjty0001 and id is 1 raw text is: ~THE COMPTROLLER GENERAL ECISION i OF THE UNITED STATES WASHINGTON. 0. C. 20546 FILE: B-202647.2 DATE: October 2, 1981 MATTER OF: James M. Smith, Inc. -- Reconsideration DIGEST: 1. ,It is improper to require only a total bid price at bid opening and post-bid opening submission of and possible negotiation of unit prices under IFB for indefinite quantity contract, since unit prices are necessary at bid opening to set the material terms of contractor's obligation. That procedure, however, may be used if a fixed price contract is con- templated, since the Government's accep- tance of the low bid would obligate the firm to provide the services listed for the stated period for which the Govern- ment would pay the total bid price. In that case, unit prices would not affect the contractor's obligation. 2. A bidder may alter prompt payment dis- counts for option years different from that offered for the base year where not precluded from doing so by IFB. J.R.W. Enterprises, Inc. requests that we reconsider our decision James M. Smith, Inc., B-202647, June 17, 1981, 81-1 CPD 506, which concerned a protest by James M. Smith, Inc. against the proposed award of a contract to J.R.W. under invitation for bids (IFB) N62470-81-B-2759 issued by the Naval Facilities Engineering Command (NAVFAC). The IFB sought bids to furnish bus and taxi services at the Norfolk Naval Shipyard in Virginia. Smith, the second low bidder, contended that J.R.W.'s low bid should have been rejected as nonresponsive. Our review of the record revealed what we saw as a fundamental defect in the procurement unrelated to whether or not J.R.W.'s bid was responsive, which rendered improper any award under the IFB. We therefore recommended that the solicitation be canceled. 116 /4 /

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