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Controlled Systems, B-401208.2, July 8, 2009

  • By GCPC GovCon Legal Team
  • July 8, 2009
  • Technical Acceptability

Link:   GAO Opinion

Agency:          Department of the Army

Disposition:  Protest denied.

___________________________________________________________________________________________________________________

GAO Digest:

Protest that a quotation contains conflicting delivery terms and should have been found technically unacceptable because it did not conform to the solicitation’s requirement for delivery to destination is denied, where the awardee’s quotation included pricing for delivery to destination, the agency determined that the inclusion of a conflicting delivery term was a minor error, and the purchase order issued to the awardee provided for delivery to destination at the price quoted.

General Counsel P.C. Highlight:

GAO denies the protest of Controlled Systems, based on the issuance of an order to Mark C. Pope Associates, Inc. (MCPA), under a request for quotations (RFQ), issued by the Department of the Army for the procurement, shipment and installation of ground power converters.

Controlled Systems complains that MCPA’s quotation was technically unacceptable because the quotation took exception to a material delivery term. A quote that fails to conform to the material terms and conditions of the solicitation should be considered unacceptable and may not form the basis for an award. MCPA’s quote did conform to the RFQ’s material terms and conditions. With respect to the delivery terms, although MCPA’s quotation stated that delivery would be “FOB Shipping Point,” the firm quoted a price for delivery, “FOB Destination” to Fort Sill, which was part of MCPA’s total price. Given that MCPA quoted complete pricing for the supply, delivery and installation of the power converters on a turnkey basis, as contemplated by the RFQ, GAO thinks that the Army reasonably concluded that the inclusion of the “FOB shipping point” term, which was inserted below the firm’s quoted prices and was not specifically associated with any of the priced CLINs, was a minor error. The purchase order issued to MCPA by the Army provided for delivery to Fort Sill at the price quoted by MCPA. The protest is denied.

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