BNUMBER: B-274328
DATE: November 20, 1996
TITLE: C.R. Hipp Construction Co., Inc.
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Matter of:C.R. Hipp Construction Co., Inc.
File: B-274328
Date:November 20, 1996
Al Hitchcock for the protester.
Peter M. Kushner, Esq., Diane D. Hayden, Esq., and George N. Brezna,
Esq., Department of the Navy, for the agency.
Andrew T. Pogany, Esq., and Michael R. Golden, Esq., Office of the
General Counsel, GAO, participated in the preparation of the decision.
DIGEST
Where the bid opening officer receives a mailed bid from the agency
mail clerk while he was walking en route from the building's foyer
(where he declared that no more hand-carried bids would be accepted)
to the bid opening room, bid was properly considered as timely
received by the agency where solicitation did not designate particular
office for receipt of bids and bid was received in the mailroom prior
to the declared bid opening time.
DECISION
C.R. Hipp Construction Co., Inc. protests the award of a contract to
Ely Energy, Inc. under invitation for bids (IFB) No. N62467-95-B-0784,
issued by the Department of the Navy, Southern Division, Naval
Facilities Engineering Command, Charleston, South Carolina, to provide
and install a propane/air system, including propane storage tanks, at
a military facility. Hipp contends that Ely's bid should have been
rejected as late.
We deny the protest.
Bid opening was scheduled for 2:30 p.m. on June 13, 1996. At
approximately 2:15 p.m., the bid opening official arrived in the
main foyer of the agency's building to meet any bidders, accept
hand-carried bids, and keep the bidders in the foyer until bid opening
time. The facility is a secured access building and the main foyer
entrance is the only point of building entry for bidders. At 2:30
p.m., the bid opening official announced in the foyer that "it is now
2:30 and no more hand carried bids will be accepted." He then began
to escort bidders to the bid opening room where the bid box is kept.
En route to the bid opening room, approximately 1 minute after he had
announced that no more hand-carried bids would be accepted, he
encountered a Southern Division mailroom clerk who handed him a mailed
bid received at the mailroom. Recognizing that the envelope contained
a bid, the bid opening official accepted the envelope from the agency
mail clerk and continued to walk to the bid opening room. Once there,
and several minutes later, he opened the bid box, the other bids were
removed, and he proceeded with bid opening. Ely's bid was low. The
agency initially considered Ely's bid as late but subsequently
determined that Ely had submitted a timely bid. This protest followed
from Hipp, the second low bidder.
The agency properly considered Ely's bid. The Federal Acquisition
Regulation (FAR) requires that bids be submitted and received in the
"office designated in the invitation for bids . . . not later than the
exact time set for opening of bids." FAR sec. 14.302(a); see also sec.
14.304-1. The "office designated" typically is a specific location of
the office responsible for the ultimate receipt and safeguarding of
the bids. That location usually will be identified by name, see,
e.g., Adrian Supply Co., B-243904; B-243904.2, Aug. 7, 1991, 91-2 CPD para.
140 ("Operational Contracting Division"); Cost Bros., Inc. and Lori
Waterproofing, Inc., B-213257 et. al., Apr. 24, 1984, 84-1 CPD para. 469
("Chief, Purchase & Contracting Section (90C)"), by code or symbol,
see, e.g., Nuaire, Inc., B-221551, Apr. 2, 1986, 86-1 CPD para. 314 ("VA
Medical Center 648/90f"), or by room number. See Larry J. Robinson &
Co., Inc., B-234991, June 13, 1989, 89-1 CPD para. 559 ("Rm C-121"). In
such cases, receipt by the agency's mailroom or other receiving
facility does not constitute receipt by the "office designated" in the
IFB for receipt of bids. LectroMagnetics, 56 Comp. Gen. 50 (1976),
76-2 CPD para. 371. See also Adrian Supply Co., supra (an APO address is
"an intermediate stop in transit" and thus receipt of a bid at that
address does not constitute receipt at the designated location, the
"Operational Contracting Division").
In some cases, however, agencies do not identify a specific office or
location for receipt of mailed bids--the designated office is simply
the agency's generic address. In these cases, there is no "office
designated in the invitation for bids" other than, in effect, the
agency's point of receipt; this means that a bidder's obligation to
submit its bid so that it is received in the "office designated . . .
not later than the exact time set for opening of bids" is satisfied if
the bid is received at the agency's point of receipt by the bid
opening time.
Here, the agency explains that it views Ely's bid as timely received
because the IFB did not identify a specific location for receipt of
mailed bids, all of the Southern Division including its mailroom is
located in one building and its practice is to "receive and date time
stamp mailed bids in the mail room" and then deliver them to the
procurement office or directly to the bid box in the bid opening room,
and Ely's bid was received in the mailroom at 2:28 p.m.[1]
We see no reason to disagree with the agency. Since the IFB did not
designate a specific location within the agency for bids to be
received, the agency's practice of considering receipt as occurring at
its mailroom under these circumstances is reasonable and not
inconsistent with any provision of the FAR. Moreover, it is not
apparent how consideration of Ely's bid in these circumstances would
adversely affect the competitive bid system--the cutoff point for both
mailed and hand-carried bids such as the protester's is exactly the
same.[2] Accordingly, we consider Ely's bid to have been timely
received and its acceptance to be proper.
The protest is denied.
Comptroller General
of the United States
1. The bid was stamped in at 2:32 p.m., but the agency determined that
the mailroom clock was 4 minutes fast when compared to the clock used
to determine the bid agency time, which had been set shortly before
bid opening to Naval Observatory.
2. While it is possible that in some instances a bid timely received
in the agency's mailroom will not be delivered to the bid opening room
in time for the public bid opening, that is not an impediment to
viewing the bid as having been timely received. The procurement
regulations and our decisions permit, under appropriate circumstances,
consideration of bids that were not available at bid opening. See FAR sec.
14.304-1; Lockley Mfg. Co., Inc., 59 Comp. Gen. 189 (1980), 80-1 CPD para.
15.