Protest of a Low Fee Proposal

CE 480

Facts

A state agency, operating under a new procedure for selection of engineering services, advertised its intention to retain an engineering firm for the design of a highway bridge. The announcement called for all interested firms to submit a statement of qualification, following which the agency selection board would prepare a "short list" of the three best qualified firms. Thereafter, each of those firms would be requested to attend a "scope of project" meeting for more information about the requirements, following which those firms would be asked to submit a price proposal. The agency procedure states that it is not required to accept the lowest price, but that price will be a factor in the selection decision.

After a review of the competency of all the firms by the agency engineering staff, Firms A, B, and C were placed on the "short list" and principals of those firms attended the "scope of project" meeting. The firms then subsequently submitted the following price proposals: Firm A - $50,000; Firm B - $120,000; and Firm C - $200,000.

The agency announced its intention to award the contract to Firm A. Representatives of Firms B and C promptly filed protests with the agency and called for a public hearing on the ground that the proposal of Firm A was so out of line with realistic costs for proper engineering performance for the project that the result would most likely be an inadequate design, with higher construction and maintenance costs over the life of the facility, and the possibility that the design could be unsafe and jeopardize the public health. A principal of Firm A charges that the engineer principals of Firms B and C have acted unethically. In return, the engineer principals of Firms B and C counter that the engineer principals of Firm A have acted unethically in making their proposal under these circumstances.

Questions

1. Were the engineer principals for Firm A unethical in submitting their price proposal as stated?

2. Were the engineer principals of Firms B and C unethical in filing a public protest and calling for a public hearing regarding the award of the contract to Firm A?