BNUMBER:  B-270204
DATE:  February 16, 1996
TITLE:  VSA International Corporation

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Matter of:VSA International Corporation

File:     B-270204

Date:     February 16, 1996

John T. Vanderveen for the protester.
Mike Colvin, Department of Health and Human Services, for the agency.
John L. Formica, Esq., and Guy R. Pietrovito, Esq., Office of the 
General Counsel, GAO, participated in the preparation of the decision.

DIGEST

Bid that did not provide a price as required for the option year of 
the contract should have been rejected by the agency as nonresponsive.

DECISION

VSA International Corporation protests the award of a contract to 
North Central Community Based Services, Inc. (NCCBS) under invitation 
for bids (IFB) No. 95-14/MAG, issued by the Indian Health Service, 
Department of Health and Human Services.  VSA argues that the agency 
should have rejected NCCBS' bid as nonresponsive.

We sustain the protest.

The IFB, issued on August 28, 1995, provided for the award of a firm, 
fixed-price contract for a base period of 1 year with one 1-year 
option.  The contractor will be required to assist the Albuquerque 
Area Indian Health Service in the planning and development of mental 
health services for Indian people throughout New Mexico.  The IFB 
requested lump-sum prices for two line items (the base year and option 
year), and provided that the bids would be evaluated for award by 
adding the price for the option year to the price for the base year.

Seven bids were received by bid opening, and the five lowest bids were 
reviewed to determine whether the bidders met certain special 
standards of responsibility contained in the IFB.  The bidders 
determined responsible, and their respective bids, are as follows:

                Base Year       Option Year     Total

NCCBS           $64,484                         

VSA             $78,411         $48,766         $127,177

Ricketts & Associates$99,000    $103,950        $202,950
The agency subsequently awarded the contract to NCCBS.

VSA protests that NCCBS' bid should have been rejected by the agency 
as nonresponsive because the bid did not include any price for the 
option year.  The agency has not provided, nor does the record 
evidence, any explanation for the agency's acceptance of NCCBS' bid, 
even though the bid did not provide a price for the option year 
services.    

To be responsive, a bid as submitted must represent an unequivocal 
offer to comply with the IFB's material terms, which include the 
requirement for a firm, fixed price.  UpSide Down Prods., B-243308, 
July 17, 1991, 91-2 CPD  para.  66.  The requirement for fixed prices 
extends to options where, as here, the IFB requires bidders to price 
the option year services and provides that the agency will evaluate 
such prices in making award.  Areawide Servs., Inc., B-240134.4, Sept. 
4, 1990, 90-2 CPD  para.  182.  A bidder's failure to submit a price for the 
option year, where requested, causes doubt as to the intended option 
price or whether the bidder has obligated itself to perform the option 
services.  Larry's Inc., B-230822, June 22, 1988, 88-1 CPD  para.  599.  
Because NCCBS failed to submit a price or make any other notation for 
the option year of the contract, its bid should have been rejected by 
the agency as nonresponsive.  UpSide Down Prods., supra.

We recommend that the agency terminate its contract with NCCBS and 
award the contract to VSA, if otherwise appropriate.  We also 
recommend that VSA be reimbursed its costs of filing and pursuing the 
protest.  Bid Protest Regulations, section 21.8(d)(1), 60 Fed. Reg. 
40,737, 40,743 (Aug. 10, 1995) (to be codified at 4 C.F.R.  sec.  
21.8(d)(1)).  The protester should submit its certified claim for 
costs directly to the agency within 90 working days of its receipt of 
this decision.  Bid Protest Regulations, section 21.8(f)(1). 

The protest is sustained.

Comptroller General 
of the United States