BNUMBER: B-276294
DATE: March 10, 1997
TITLE: Esprit International Corp.
**********************************************************************
Matter of:Esprit International Corp.
File: B-276294
Date:March 10, 1997
Guido Gabbrielli for the protester.
Adam Vodraska, Esq., Office of the General Counsel, GAO, participated
in the preparation of the decision.
DIGEST
Where solicitation contains standard provision permitting bidders to
insert acceptance period of less than 60 days, bidder offering a
14-day acceptance period may not be permitted to extend acceptance
period after expiration of 14 days since acceptance of bid under such
circumstances would afford bidder unfair advantage over other bidders.
DECISION
Esprit International Corp. protests the refusal of the Defense
Reutilization and Marketing Service to consider its high bid for two
items under sales invitation for bids (IFB) No. 31-7314, following the
expiration of its bid acceptance period.
We dismiss the protest.
The IFB contained the following standard language concerning the bid
acceptance period:
"In compliance with the above, the undersigned offers and agrees,
if this bid is accepted within calendar days (60 calendar
days if no period is specified by the Government or the Bidder,
but not less than 10 calendar days in any case) after date of Bid
Opening, to pay for and remove the property."
Esprit limited its bid acceptance period to 14-calendar days from bid
opening. At the January 7, 1997, bid opening, Esprit submitted the
highest bids on items 166 and 263.
However, the agency could not process the award within the 14-day
period due to certain administrative difficulties in connection with
the sale. On January 29, the contracting officer informed Esprit that
she could not award Esprit the items because the bid acceptance period
specified by Esprit in its bid had expired. Esprit pursued the matter
with the agency, which denied Esprit's request to revive its bid by
extending its expired bid acceptance period. Esprit then filed this
protest.
Where, as here, the IFB does not contain a mandatory bid acceptance
period, the bidder is free to offer a period shorter than the
automatic 60-day period stated in the IFB; however, the bidder runs
the risk that award will not be made either during this shorter time
or by the date the IFB specifies as the date of award, since the
government is not bound to award the contract on that date. On the
other hand, the bidder which offers a shorter acceptance period is
exposed to the risk of the marketplace for a shorter period of time,
and is thus taking less risk than other bidders who offer a longer bid
acceptance period. See Mid Atlantic Label, Inc., B-234120, Mar. 31,
1989, 89-1 CPD para. 338; Peck Iron and Metal Co., Inc., B-195716, Oct.
17, 1979, 79-2 CPD para. 265.
We have permitted a bidder to revive its expired bid only where the
bidder would not, thereby, compromise the integrity of the competitive
bidding process by obtaining an advantage over the other bidders.
Discount Machinery & Equip., Inc., B-244392, Oct. 15, 1991, 91-2 CPD para.
334; John T. Jones Constr. Co., B-240643,
Nov. 27, 1990, 90-2 CPD para. 430. Here, to allow Esprit to revive its
bid after the expiration of its 14-day acceptance period would afford
the protester an unfair advantage since its initial exposure to the
risk of the marketplace was for a shorter time period than that
applicable to the bidders who offered a longer period. See Mid
Atlantic Label, Inc., supra; Peck Iron and Metal Co., Inc., supra.
Accordingly, the agency properly refused to consider Esprit's bid for
items 166 and 263 following the expiration of Esprit's bid acceptance
period.
The protest is dismissed.
Comptroller General
of the United States