New
As a general rule, a bidder’s failure to acknowledge a material
amendment requires the agency to reject a bid as nonresponsive.
This rule is based on the fact that acceptance of a bid when an
amendment has not been acknowledged would afford the bidder an
opportunity to decide, after bid opening, whether to furnish
extraneous evidence showing that it had considered the amendment
in formulating its price or to avoid award by remaining silent.
See N.B. Kenney Co., Inc., B-220436, Feb. 4, 1986, 86-1 CPD ¶
124 at 2-3. Moreover, if such a bid were accepted, the bidder
would not legally be bound to perform in accordance with the
terms of the amendment, and the government would bear the risk
that performance would not meet its needs. See Doyan Constr.
Co., Inc., B-212940, Feb. 14, 1984, 84-1 CPD ¶ 194 at 4.
However, our Office has found that an amendment may be
constructively acknowledged where the bid itself includes one of
the essential items appearing only in the amendment, thus,
evidencing the bidder’s receipt of, and intent to be bound by,
the amendment. Professional Aviation Maint. & Mgmt. Servs.,
Inc., B-232078, Oct. 13, 1988, 88-2 CPD ¶ 350 at 2; C Constr.
Co., Inc., B-228038, Dec. 2, 1987, 87-2 CPD ¶ 534 at 3.
Here, ZWS’s bid indicates that it received amendment No. 12 and
intended to perform in accordance with its terms. As such,
regardless of whether ZWS’ bid acknowledged amendment No. 12 in
accordance with one of the methods set forth in the amendment,
we find that ZWS constructively acknowledged the amendment by
modifying CLIN 2005 in its bid to reflect the change in unit
type from “job” to “months.” AR, Tab 17, ZWS’ Bid at 17. This
specifically acknowledges compliance with the change to the CLIN
unit type that was not contained in the original IFB, and was
added by amendment No. 12. Therefore, we find that the agency
reasonably concluded that ZWS acknowledged the amendment.
Professional Aviation Maint. & Mgmt. Servs., Inc., supra.
Moreover, as ZWS was properly found to have acknowledged all
amendments, its bid was reasonably found to be responsive.[3]
See JOCH Constr. Co., B-410980, B-410980.2, Apr. 7, 2015, 2015
CPD ¶ 126 at 4 (finding bid responsive where, despite minor
informality in bid, the bid offered to perform the exact thing
called for in the IFB, so that acceptance of the bid bound the
bidder to perform in accordance with all of the terms and
conditions of a solicitation without exception). (Mark
Dunning Industries, Inc. B-415890.2, B-415890.3: Nov 5,
2018)
Here, while the original IFB specified the Romtec restroom
facility model #1018, the record shows that this model comes
with several options. For example, purchasers have the option of
brown or gray concrete color, split-face or smooth exterior, and
custom cedar, low or plank siding, or stucco or stone exteriors.
Romtec Website, http://www.romtec.com. The IFB as originally
issued required the following options: red shingles, gray
concrete, smooth exterior, stainless toilet paper dispensers,
and polyethylene urinal. The amended IFB changed the color of
the shingles to amber, changed the concrete to brown and added a
cedar lap siding. The agency maintains that the most significant
change made by the amendment was the addition of the cedar lap
siding. According to the agency, while cedar siding is more
expensive, it is favored by the National Park Service for its
appearance and its ability to withstand exposure. The agency
contends that without Northern’s acknowledgment of the
amendment, it would have no assurance that Northern intended to
provide the more expensive cedar siding. Northern contends that
its failure to acknowledge the amendment should be waived since,
according to Northern, the amendment imposed no additional legal
obligation on the contractor. Northern states that, under the
terms of the IFB, it was obligated to deliver Romtec model #1018
and it understood that colored shingles and colored concrete
were required. In addition, Northern contends that the details
of the sketches provided with the solicitation showed lap siding
rather than log or plank siding. Since the only lap siding
available for this product is the more costly cedar siding, the
protester argues that its bid was improperly rejected. We
disagree. By failing to acknowledge this amendment, Northern was
only obligated to provide the agency a restroom built with red
shingles and gray concrete, when the agency required amber
shingles and brown concrete. Moreover, since the original IFB
was silent with respect to the type of siding
required--notwithstanding Northern’s contention that the
drawings depicted lap siding and that Romtec only has cedar lap
siding--Northern was under no obligation to provide the cedar
lap siding the agency required and could have provided a less
expensive alternative. In other words, absent acknowledgment of
the amendment here, Northern has not bound itself to furnish the
specified siding. Furthermore, even if an amendment’s impact on
price is trivial, the amendment is material if it affects the
quality of performance in more than a negligible way. MIBO
Constr. Co., B-224744, Dec. 17, 1986, 86-2 CPD para. 678 at 2.
The color of an item can be a material requirement, as can
compliance with a pre-existing color scheme or other aesthetic
considerations. Products for Indus., B-257463, B-257463.2, Oct.
6, 1994, 94-2 CPD para. 128 at 2 (descriptive literature
identifying color of workbenches and cabinets as “gray” properly
resulted in rejection of bid where IFB listed “black” as the
required color). On this record, we view the amendment as
material; without acknowledging the amendment, Northern’s bid
does not represent a clear commitment by that firm to furnish
amber shingles, brown concrete or cedar lap siding, and the bid
is therefore nonresponsive. (Northern
Sealcoating & Paving, Inc., B-299393,March 30, 2007) (pdf)
A bidder’s failure to acknowledge a material amendment to an IFB
renders the bid nonresponsive, since absent such an
acknowledgment the government’s acceptance of the bid would not
legally obligate the bidder to meet the government’s needs as
identified in the amendment. Federal Constr., Inc., B-279638,
B-279638.2, July 2, 1998, 98-2 CPD para. 5 at 2. An amendment is
not material and the failure to acknowledge it should be waived
as a minor informality where the amendment has no effect or
merely a negligible effect on the price, quantity, quality,
delivery of the item bid upon, or no effect on the relative
standing of the bidders. Federal Acquisition Regulation sect.
14.405(d)(2); Kalex Constr. & Dev., Inc., B-278076.2, Jan. 20,
1998, 98‑1 CPD para. 25 at 2. Additionally, an amendment is not
material where it does not impose any legal obligations on the
bidder different from those imposed by the original
solicitation; for example, where it merely clarifies an existing
requirement or is a matter of form. Kalex Constr. & Dev., Inc.,
supra. Nevertheless, a procuring agency is not required to enter
into a contract which presents the potential for litigation
stemming from an ambiguity in a solicitation. ACC Constr. Co.,
B-277554, Sept. 22, 1997, 97-2 CPD para. 84 at 4. Rather, an
agency has an affirmative obligation to avoid potential
litigation by resolving solicitation ambiguities prior to bid
opening, and amendments clarifying matters which could otherwise
engender disputes during contract performance are generally
material and must be acknowledged. Id. No precise rule exists to
determine whether an amendment is material; rather, that
determination is based on the facts of each case. Dyna Constr.,
Inc., B-275047, Jan. 21, 1997, 97-1 CPD para. 31 at 3. In
rejecting Fort Mojave/Hummel’s bid and defending this protest,
the agency only contends that only two of the items set forth in
the amendment are material: one item pertains to the insulation
of certain pipes and the other item pertains to the placement of
certain pipes in five of the rooms in the vocational education
building.
In our view, given the architect/project manager’s explanation
and the IFB’s specifications and drawings, which provide that
the buildings will be “concrete on ground” without crawl spaces,
we agree that the solicitation, both as initially issued and as
amended can only be read as requiring the same thing--the
insulation of all interior storm drainage or downspout piping.
Given that this aspect of the amendment does not have any effect
on the work bid upon, that is, it does not impose any legal
obligations on the bidder different from those imposed by the
original solicitation or affect the quality or price of the
project, it is at best a clarification of an existing
requirement and cannot properly be considered material. As
explained below, we agree with the protester that under either
of the above interpretations provided by the architect/project
manager, the amendment’s note that the piping in the rooms
listed be placed “high in joist space,” viewed in the context of
the solicitation as a whole, does not constitute a material
change.[7] See Protester’s Post-Hearing Comments at 6. In this
regard, we first note that this amendment affects only a small
aspect of the IFB, which provides for the award of a
comprehensive construction contract for nine new buildings
totaling approximately 190,997 gross square feet, on a 24-acre
parcel, with a contract value of more than $31 million. As
discussed above, the architect/project manager explained that
the requirement that certain piping be “run high in joist
spaces” either was provided for by the IFB as issued, or
required merely a slightly different placement of the piping in
only five rooms in only one of the nine buildings to be
constructed. Assuming the amendment is considered as requiring a
slightly different placement of the piping (as opposed to merely
clarifying the IFB requirements), the agency’s estimate of the
cost impact of the amendment is negligible in the context of the
contract as a whole--$10,000 versus $31,399,000 bid by Fort
Mojave/Hummel. Moreover, because Fort Mojave/Hummel’s bid price
is $365,000 lower than the next low bid, the $10,000 estimated
cost of the slightly different placement of the piping would
have no effect on the relative standing of the bidders. Under
the circumstances, the addition of the note can best be
characterized as no more than a minor modification of what was
already required by the IFB, not, as the agency suggests, the
imposition of a material, new and separate legal obligation.
Thus, we do not agree with the agency that Fort Mojave/Hummel’s
failure to acknowledge the amendment to the solicitation
rendered its bid nonresponsive. See Head Inc., B-233066, Jan.
25, 1989, 89-1 CPD para. 82 at 4 (amendment’s change to a small
portion of a sprinkler system from a sidewall type to an
overhead type was not material in that it made only a minor
modification to a requirement in the IFB and had de minimis
effect on price). (Fort Mojave/Hummel,
a Joint Venture, B-296961, October 18, 2005) (pdf)
A bidder's failure to acknowledge a material amendment to an IFB
renders the bid nonresponsive, since absent such an
acknowledgment the government's acceptance of the bid would not
legally obligate the bidder to meet the government's needs as
identified in the amendment. Federal Constr., Inc. , B-279638,
B-279638.2, July 2, 1998, 98-2 CPD 65 at 2. An amendment is
material only if it would have more than a trivial impact on the
price, quantity, quality, delivery, or the relative standing of
the bidders. Federal Acquisition Regulation (FAR) 14.405(d)(2);
Kalex Constr. & Dev., Inc. , B-278076.2, Jan. 20, 1998, 98-1 CPD
25 at 2. An amendment is not material where it does not impose
any legal obligations on the bidder different from those imposed
by the original solicitation; that is, for example, where it
merely clarifies an existing requirement or is a matter of form.
Kalex Constr. & Dev., Inc. , supra. A bidder's failure to
acknowledge an amendment that is not material is waivable as a
minor informality. FAR 14.405; Overstreet Elec. Co., Inc. ,
B283830, B-283830.2, Dec. 30, 1999, 2000 CPD 8 at 7. Here, we
find that amendment No. 0002 was not material because it only
provided bidders with additional information about the location
of the Harrison County Development Commission Dredge Material
Disposal Area C-1 that was previously designated as the place
where bidders were required to transport and dispose of the
dredge material. The information regarding the precise location
of this disposal site, while useful to bidders that may not have
otherwise determined its location, did not impose legal
obligations or requirements different from those contained in
the original IFB, including amendment No.0001. See Angus Fire
Armour Corp. , B237211.2, Jan. 18, 1990, 90-1 CPD 68 at 3.
(Singleton Enterprises, B-295562,
February 25, 2005) (pdf)
We find that, as issued, the IFB was not clear as to whether the
slab was to be removed. Our conclusion rests on our reading of
the language in IFB 010101, General Requirements, which provides
that
[t]he Range Front structure is a
four-legged angle iron structure,
approximately 20 feet high, anchored to a concrete slab
approximately
5' x 7' x 2'. The tower and slab are resting on the jetty
capstones. The
Range Rear structure is land-based on the Bolivar Peninsula.
It is a
Free standing steel galvanized tower approximately 90'tall
bolted to a
23'x 23'x 4'thick concrete foundation. Id. , 1.1.2, at 1.
We think it is possible to read
this language as the protester suggests--because "the Range
Front structure" (the description is similar for "the Range Rear
structure") was described as comprised of an "iron structure . .
. anchored to a concrete slab," the requirement for removal of
the "structure(s)" encompassed removal of the slab. However, we
think it also is possible to read the provision as the agency
did--because the language also refers to the tower itself as "a
four-legged angle iron structure," the IFB as issued could be
read as requiring removal of only the tower "structure(s)."
Under these circumstances--where both interpretations of the IFB
requirements were reasonable--the IFB as issued was ambiguous,
and the amendment was necessary to require removal of the rear
range slab. Since the estimated cost of removal of the slab was
greater than the difference between Takota's and the next lowest
bid--and therefore could have affected the outcome of the
competition, assuming that one bidder may have included the cost
while the other did not--the amendment was material. Takota's
bid therefore was properly rejected as nonresponsive for failing
to acknowledge the amendment. Eagle Const. Servs., Inc. , supra
, at 4. (Takota Corporation,
B-294104, July 30, 2004) (pdf)
Further, an amendment is also not
material where it does not impose any legal obligations on the
bidder different from those imposed by the original
solicitation; that is, where an amendment merely clarifies an
existing requirement or is a matter of form, the failure to
acknowledge the amendment should be waived and the bid should be
accepted. Stanger
Indus., Inc., B-279380, June 4, 1998, 98-1 CPD para. 157 at
3; Kalex
Constr. & Dev., Inc., B-278076.2, Jan. 20, 1998, 98-1
CPD para. 25 at 2. (Lumus
Construction, Inc., B-287480, June 25, 2001)
A procuring agency is not
required to enter into a contract which presents the potential
for litigation stemming from an ambiguity or inaccuracy in the
solicitation. Rather, an agency has an affirmative obligation to
avoid potential litigation by resolving solicitation ambiguities
or inaccuracies prior to bid opening. Amendments clarifying
matters that could otherwise engender disputes during contract
performance are generally material and must be acknowledged.
(Christolow
Fire Protection Systems, B-286585, January 12, 2001)
Here, even the agency
acknowledges that the unamended IFB contained a patent ambiguity
concerning whether a card was required for item 6. What is also
clear is that, in addition to this ambiguity, the unamended IFB
contained no requirement obligating the contractor to furnish a
bound in card for item 6, which represented the agency's need.
Thus, amendment No. 1 imposed an additional material requirement
on the contractor for a bound in card for item 6, that was
clearly not contained in the original solicitation.[2]
We conclude that amendment No. 1 was material and that the
agency could not waive the failure of News to acknowledge this
amendment without prejudice to the other bidders. (John
D. Lucas Printing Company, B-285730, September 20, 2000)
On its face, amendment 0001
merely reduced the minimum integrated short circuit rating for
the branch circuit panelboards required by the IFB under
specification section 16470, paragraph 2.2.5, from 65,000
amperes to 22,000 amperes. This change reduces the performance
requirement for branch circuit panelboards from that initially
required. Indeed, a bid that binds the bidder to provide branch
circuit panelboards with the original higher minimum integrated
short circuit rating would exceed the agency's amended minimum
requirement. Agency Report at 17. It is also undisputed that the
effect on price of reducing the minimum short circuit rating of
the specified panelboards would be to reduce price. Thus, on its
face, the amendment is immaterial. See Schuster Eng'g, Inc.,
supra, at 4. (Overstreet
Electric Company, Inc., B-283830; B-283830.2, December 30,
1999)
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