What is the risk of picking gimmel

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Reference no: EM131957650

- Spring 2016 The Army has determined that it needs to have all the agency's computer monitors virus

Your document should be in essay format, error-free, graduate level composition (i.e. APA format should be followed, including cover sheet and references). Please be sure to fully answer each question and cite the legal authority you are relying on to support your answer.

PROBLEM:

The Army has determined that it needs to have all the agency's computer monitors virus- checked ("virus checking" includes inspection of the monitor and then removal of any virus), and has asked the contracting officer, Dora to issue a request for quotations (RFQ).

The RFQ, issued on November 1, 2014, states that the Army needs to have 1 million of
the agency's computer monitors inspected and then virus-cleaned by Monitor Virus Cleaning ("MVC") qualified technicians. The RFQ requested that vendors submit references, and stated that past performance would be considered twice as important as the quoted fixed price in the selection process.

The following companies submitted quotations for virus checking 1,000,000 computers:

• Aleph = $20,000,000

• Bet = $14,000,000

• Gimmel = $3,600,000

The contracting officer checked the references that the firms provided with their quotations, and learned that Aleph had "outstanding" ratings from all three references; Bet had "very good" ratings from two references and an "outstanding" rating (which is one notch higher than "very good") from a third; and Gimmel's submission stated that it had never performed MVC services (although it had performed monitor polishing services and window washing, as well).

In addition, the contracting officer learned from the press that Aleph was having financial difficulties and was rumored to be on the verge of bankruptcy. In fact, the contracting officer had read an interview with the CEO of Aleph in Computer Virus Monthly, in which the CEO was quoted as saying "What do they expect of a tiny firm like us?

Of course, when the high-tech titans are falling, the little companies like us may get hit." The agency had a team of technical evaluators go over the three companies' submissions. They recommended eliminating Gimmel's quotation from consideration, because the company lacked relevant past performance, and it wasn't worth taking the risk of dealing with them.

ASCM 650 - Spring 2016 Prof. Lawrence Jordan III, Esq.

FINAL EXAMINATION

The contracting officer reviewed the quotations, read the evaluation write-up, and thought about the technical team's recommendation; however, she wanted to select Gimmel because of the low price quote.

She's called you, her counsel, in for a discussion. She wants to hear from you what the legal implications would be of selecting Gimmel and rejecting Aleph and Bet. Here are her exact words to you:

"I know it's a pity that Gimmel hasn't done this kind of work before, but my aunt Betty tells me catching viruses on computers isn't as complicated as it seems, so maybe I should go for Gimmel, since their price is so low. I mean look, they will do this work for a fixed price of $3,600,000, won't they? And that's a lot cheaper than anyone else - and our budget situation is looking pretty awful, so picking Gimmel could really help.

Can I just skip the past performance rating? Should I have pitty on them because they are a tiny company? I can just throw out Aleph and Bet as non-responsive to the RFQ?"

Your job is to write up answers to her questions, and to provide the legal implications of selecting Gimmel. Be sure to address the following:

• What is the risk of picking Gimmel? (Provide a detailed explanation of the risk)

• What legal options will Aleph and Bet have if you select Gimmel? (Please identify all options and provide a detailed explanation)

• What is the legal procedure that Aleph and Bet must follow? (Define and explain the procedure)

• Where can Aleph and Bet file their claim? (Provide a detailed summary of the process and identify the steps)

• What must Aleph and Bet prove to be successful on their claim? (Provide a detailed explanation)

Reference no: EM131957650

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