B-167572, FEB. 16, 1970

B-167572, FEB. 16, 1970

BID PROTEST--BUY AMERICAN ACT AFFIRMATION OF DECISION OF SEPTEMBER 23, 1969, DENYING PROTEST ON BEHALF OF WALTHAM PRECISION INSTRUMENTS, INC. AGAINST AWARD BY ARMY OF CONTRACT TO WAKMANN WATCH CO; INC. FOR FURNISHING AIRCRAFT CLOCKS BECAUSE OF FOREIGN COMPONENTS. ON THE BASIS OF A REEVALUATION OF THE COST DATA OF THE FOREIGN COMPONENTS, THE DETERMINATION THAT THE ITEM FURNISHED CAME WITHIN THE CRITERIA OF DOMESTIC SOURCE AND PRODUCT WAS PROPER AND IS NOT SUBJECT TO OBJECTION.

TO SELLERS, CONNER & CUNEO:

WE REFER TO YOUR LETTER OF NOVEMBER 4, 1969, IN BEHALF OF WALTHAM PRECISION INSTRUMENTS, INC. (WALTHAM), REQUESTING THAT WE RECONSIDER OUR DECISION B-167572, SEPTEMBER 23, 1969, WHICH DENIED A PROTEST BY WALTHAM AGAINST THE AWARD BY THE DEPARTMENT OF THE ARMY OF A CONTRACT TO WAKMANN WATCH COMPANY, INC. (WAKMANN), FOR THE FURNISHING OF MODEL A-13A AIRCRAFT CLOCKS UNDER INVITATION FOR BIDS (IFB) DAAA25-69-B 0417, ISSUED MARCH 3, 1969, BY FRANKFORD ARSENAL, PHILADELPHIA, PENNSYLVANIA.

WALTHAM ASSERTED THAT WAKMANN OFFERED A CLOCK COMPRISED ENTIRELY OF COMPONENTS OF FOREIGN ORIGIN, INCLUDING SWISS JEWELS; THAT WAKMANN'S CLOCK WAS THEREFORE A FOREIGN END ITEM AS DEFINED IN THE BUY AMERICAN ACT (41 U.S.C. 10A-D) CLAUSE INCLUDED IN THE IFB, I.E; AN END ITEM IN WHICH THE COMPONENTS OF FOREIGN SOURCE ACCOUNT FOR MORE THAN 50 PERCENT OF THE TOTAL COST OF ALL COMPONENTS; AND THAT UPON EVALUATION OF WAKMANN'S BID IN ACCORDANCE WITH ARMED SERVICES PROCUREMENT REGULATION (ASPR) 6-104.4, BY ADDITION OF A 50-PERCENT PRICE DIFFERENTIAL, WALTHAM WAS THE LOW BIDDER TO WHOM AWARD SHOULD HAVE BEEN MADE.

THE RECORD FURNISHED TO OUR OFFICE BY THE DEPARTMENT OF THE ARMY INCLUDED AN ITEMIZATION DATED JUNE 10, 1969, BY WAKMANN INDICATING THAT DOMESTIC COMPONENTS WERE INCORPORATED IN THE WAKMANN CLOCK AND CONSTITUTED MORE THAN 50 PERCENT OF THE COST OF ALL COMPONENTS IN THE ITEM TOGETHER WITH VERIFICATION BY THE SWISS SUPPLIER OF THE CLOCK MOVEMENTS TO WAKMANN THAT JEWELS FROM THE UNITED STATES WOULD BE INCORPORATED IN THE MOVEMENTS, WHICH WERE DESCRIBED BY THE SUPPLIER AS "RAW MECHANISMS". IN THE CIRCUMSTANCES, WE STATED THAT WE WERE UNABLE TO CONCLUDE THAT THE WAKMANN CLOCK HAD NOT BEEN PROPERLY DETERMINED TO BE A DOMESTIC SOURCE END ITEM AS DEFINED IN THE BUY AMERICAN ACT CLAUSE. ACCORDINGLY, ABSENT SUPPORT IN THE RECORD FOR THE VIEW THAT THE AWARD TO WAKMANN VIOLATED THE ASPR PROVISIONS PROMULGATED IN IMPLEMENTATION OF THE BUY AMERICAN ACT RESTRICTIONS INCLUDED IN THE IFB, WE DENIED THE PROTEST.

THE DEPARTMENT OF THE ARMY HAS MADE AVAILABLE TO YOU THE PRE-AWARD DATA WHICH WAKMANN FURNISHED TO THE PROCURING ACTIVITY UNDER DATE OF JUNE 10, 1969, REGARDING THE COST OF THE COMPONENTS OF ITS CLOCK. PERTINENT TO OUR RECONSIDERATION OF THIS CASE IS THE INDICATION IN SUCH DATA THAT WAKMANN HAD ARRANGED TO PURCHASE THE COMPLETE DIAL FOR THE CLOCKS FROM CANRAD PRECISION INDUSTRIES, INC. (CANRAD), A NEW YORK FIRM, AT A COST OF $8.12, INCLUDING BLANKS (UNMARKED DIALS) AND CALIBRATION; THAT THE PRICE OF THE CLOCK HANDS TO BE IMPORTED FROM SWITZERLAND WAS 2.60 SWISS FRANCS, NOT $2.60 IN UNITED STATES CURRENCY AS LISTED IN THE PRE-AWARD SURVEY REPORT ON WAKMANN; AND THAT A WINDING STEM AT A UNIT PRICE OF $0.95 AND A PUSHER STEM AT A UNIT PRICE OF $0.72 HAD BEEN OMITTED FROM THE PRE-AWARD SURVEY LIST.

IN YOUR LETTER YOU STATE THAT WALTHAM IS THE ONLY UNITED STATES MANUFACTURER OF 100-PERCENT AMERICAN MADE MECHANICAL AIRCRAFT CLOCKS AND THAT ITS ONLY COMPETITOR FOR SUCH BUSINESS IS WAKMANN, WHO IS NOT A MANUFACTURER BUT AN IMPORTER OF SWISS MOVEMENTS, WHICH ARE INSTALLED IN DOMESTIC-MADE CASES. ACCORDINGLY, YOU STATE, THIS PROTEST RAISES THE QUESTION WHETHER SUCH A CLOCK AS WAKMANN SUPPLIES CAN BE CLASSIFIED AS A DOMESTIC END ITEM UNDER THE BUY AMERICAN ACT, AND YOU REGARD SUCH ISSUE AS OF EXTREME IMPORTANCE TO THE AMERICAN CLOCK INDUSTRY AND TO THE PRESERVATION OF A DOMESTIC SOURCE FOR AN IMPORTANT PIECE OF MILITARY EQUIPMENT. SPECIFICALLY, YOU CHARGE THAT THERE ARE SEVERAL DISCREPANCIES IN THE COST DATA SUBMITTED BY WAKMANN, AND YOU THEREFORE REQUEST THAT THE DATA BE REEVALUATED BEFORE A FINAL DETERMINATION IS MADE AS TO WHETHER WAKMANN'S CLOCK IS AN END ITEM OF DOMESTIC OR FOREIGN ORIGIN.

WITH RESPECT TO THE SWISS MOVEMENT IN THE WAKMANN CLOCK, YOU CHALLENGE THE REPORTED UNIT PRICE OF 110 SWISS FRANCS, WHICH WAKMANN LISTED AS $25.20 IN UNITED STATES CURRENCY. YOU PROTEST THAT THE SWISS SUPPLIER REFUSES TO IDENTIFY THE "RAW MECHANISM" WITH PARTICULARITY, AND YOU STATE THAT THE SAME SUPPLIER FURNISHED THE A-13A CLOCK MOVEMENT TO WALTHAM AT ONE TIME AT A UNIT PRICE OF APPROXIMATELY $55.00, AND ON JULY 7, 1969, QUOTED TO WALTHAM A UNIT PRICE OF 230 SWISS FRANCS, OR APPROXIMATELY $53.50, FOR THE SAME MOVEMENT. YOU THEREFORE CLAIM THAT THERE IS NO EVIDENCE THAT THE "RAW MECHANISM" IS IN FACT THE A-13A CLOCK MOVEMENT OR A COMPLETE CLOCK MOVEMENT AND NOT JUST A PART OF A MOVEMENT. IN ADDITION, YOU REFER TO VARIOUS QUESTIONS ON CUSTOMS FORM 5515, ENTITLED "SPECIAL CUSTOMS INVOICE," REGARDING THE SELLING PRICE OF IMPORTED ITEMS, THE PURPOSE OF WHICH YOU STATE IS TO DETERMINE WHETHER THE DECLARED PRICE REFLECTS THE REAL VALUE OF THE ITEMS, AND YOU STATE THAT IF THE DECLARED PRICE IS NOT OFFERED FREELY TO OTHER UNITED STATES BUYERS, THE SALE MAY NOT BE AN ARMS-LENGTH TRANSACTION OR MAY BE TIED IN WITH OTHER SALES OF THE SAME OR DIFFERENT ITEMS AT GREATER THAN MARKET VALUE.

WAKMANN'S ATTORNEYS HAVE FURNISHED A STATEMENT DATED DECEMBER 22, 1969, WHICH INDICATES THAT WAKMANN HOLDS A CONTRACT, WHICH IS ALREADY OF 10 YEARS' DURATION, FOR PURCHASE OF THE ENTIRE OUTPUT OF THE A-13A TYPE CLOCK MOVEMENTS BY ITS SWISS SUPPLIER. AN INVOICE DATED NOVEMBER 25, 1969, COVERING A SHIPMENT OF 150 OF THE MOVEMENTS DESCRIBES THE ITEMS AS "NON OILED AND NON REGULATED A-13-A-2 DASHBOARD CHRONOGRAPH MOVEMENTS" AND GIVES THE UNIT PRICE AS 110 SWISS FRANCS, WHICH IS EQUIVALENT TO $25.50 IN UNITED STATES CURRENCY BASED ON THE NOVEMBER 25 EXCHANGE RATE OF .231837 PER SWISS FRANC. USING THE EXCHANGE RATE OF ?231375 WHICH WAS IN EFFECT ON APRIL 3, 1969, THE DATE THE BIDS WERE OPENED, THE COST OF EACH MOVEMENT WAS $25.45, OR 25 CENTS HIGHER THAN THE PRICE OF $25.20 WAKMANN LISTED IN ITS LETTER OF JUNE 10. IN LIGHT OF SUCH INFORMATION AND THE ADDITIONAL INFORMATION OF RECORD INDICATING THAT WAKMANN ADDS TO THE RAW MOVEMENTS THE HANDS, DIAL AND ALL OTHER PARTS WHICH ARE INCORPORATED INTO THE FINISHED CLOCK, WE BELIEVE THAT WAKMANN HAS ADEQUATELY EVIDENCED THE TYPE OF MOVEMENT WHICH IT IMPORTS AND THE COST OF THE MOVEMENT.

AS TO THE DIAL HANDS AND FACE, WHICH YOU CLAIM ARE BOTH OF FOREIGN ORIGIN, YOU STATE THAT THEIR COST IS NOT SUBSTANTIATED EITHER. WAKMANN'S ATTORNEYS, HOWEVER, HAVE FURNISHED A COPY OF AN INVOICE DATED NOVEMBER 10, 1969, FROM THE SWISS SUPPLIER OF THE HANDS, WHICH COME IN SETS OF 4, COVERING A SHIPMENT OF 2,500 SETS DESCRIBED AS "RAW HAND A-13-A" TO WAKMANN AT A UNIT PRICE OF 2.50 SWISS FRANCS, WHICH IS EQUIVALENT TO $0.578 IN UNITED STATES CURRENCY AT THE NOVEMBER 10 EXCHANGE RATE OF ?231283 FOR EACH SWISS FRANC. USING THE APRIL 3, 1969, EXCHANGE RATE OF ?231375 AND THE PRE-AWARD QUOTATION OF 2.60 SWISS FRANCS FOR EACH SET OF HANDS, THE ESTIMATED COST OF THE HANDS AT THE TIME OF BID OPENING WAS ?60, OR 3 CENTS LESS THAN LISTED IN WAKMANN'S LETTER OF JUNE 10, 1969.

WITH RESPECT TO THE SOURCE OF THE DIAL, WAKMANN'S ATTORNEYS POINT OUT THAT THE DIAL IS OF DOMESTIC ORIGIN, NOT FOREIGN ORIGIN AS THE PRE AWARD SURVEY REPORTS INDICATED. IN THIS CONNECTION, THE ATTORNEYS REFER TO WAKMANN'S LETTER OF JUNE 10, 1969, WHICH WAS ACCOMPANIED BY A QUOTATION OF THE SAME DATE OF A UNIT PRICE OF $8.12 BY CANRAD TO WAKMANN COVERING A COMPLETE DIAL INCLUDING BLANKS (UNPAINTED AND UNMARKED DIALS) AND CALIBRATION (THE MARKING OF THE DIALS WITH GRADUATIONS). THE PRICE OF $8.12, THE ATTORNEYS EXPLAIN, INCLUDES THE COST OF THE DIAL, WHICH HAS TWO FACES, AN INNER DIAL AND A RECESSED DIAL; THE PAINTING OF THE TWO FACES; AND THE CALIBRATING, OR MARKING, OF THE FACES. SUCH EVIDENCE, WE BELIEVE IS SUFFICIENT TO ESTABLISH THE COST OF THE HANDS AND DIALS AS FURNISHED TO WAKMANN AND THE DOMESTIC ORIGIN OF THE DIALS.

AS TO CUSTOMS DUTIES, WAKMANN LISTED $2.68 FOR THE SWISS MOVEMENT,WHICH YOU APPARENTLY DO NOT QUESTION, AND ?50 FOR THE HANDS, "O" RINGS AND KNOBS, WHICH YOU DO QUESTION IN VIEW OF THE PRE-AWARD SURVEY FIGURE OF $1.11, IDENTIFIED AS THE CUSTOMS DUTY ON THE DIAL. WAKMANN'S ATTORNEYS EXPLAIN THAT THE AMOUNT OF $1.11 WAS BASED ON THE ERRONEOUS PRE-AWARD SURVEY PRICE OF $2.60, INSTEAD OF 2.60 SWISS FRANCS, FOR THE HANDS. THE ACTUAL DUTY OF 40 PERCENT, THE ATTORNEYS STATE, SHOULD BE ABOUT 40 CENTS FOR THE HANDS, TWO KNOBS AND THE "O" RINGS IMPORTED FROM SWITZERLAND. BASED ON THE VALUES OF ?63, ?20 AND ?05, WHICH WAKMANN ASSIGNED TO THE RESPECTIVE ITEMS IN ITS ITEMIZATION OF JUNE 10, 1969, THE 40-PERCENT DUTY ON THE ITEMS AMOUNTS TO ?37, OR 13 CENTS LESS THAN WAKMANN LISTED AND 74 CENTS LESS THAN THE PRE-AWARD SURVEY FIGURE.

WITH REGARD TO THE CLOCK CASE, WHICH WAKMANN PURCHASES FROM TALOS MANUFACTURING AND CASTING CORPORATION, CHESTERTON, INDIANA, YOU QUESTION THE UNIT PRICE OF $3.29 LISTED BY WAKMANN FOR THE CASE. IN THIS CONNECTION, YOU STATE THAT THE INVOICE WHICH WAKMANN FURNISHED SHOWED A TOTAL PRICE OF $4,800, INCLUDING TOOLING, FOR 300 CASES, WHICH WOULD AMOUNT TO ONLY $1.60 EACH FOR 3,000 CASES. FURTHER, YOU CLAIM THE FULL VALUE OF THE TOOLING IS NOT PROPERLY CHARGEABLE TO THE FIRST 3,000 CASES SINCE THE SAME TOOLING CAN PRODUCE UP TO 100,000 CASES. EXAMINATION OF THE "INVOICE" SHOWS THAT IT IS A QUOTATION DATED OCTOBER 14, 1968; THAT IT SHOWS A UNIT PRICE OF $1.76 FOR 3,000 PCS. (PIECES); AND THAT THE FIGURE OF $4,800 COVERS TOOLS AT $3,300 AND MACHINING AT $1,500. WAKMANN'S ATTORNEYS STATE THAT, WHILE WAKMANN ESTIMATED THE COST OF THE CASE AT $3.29 PER UNIT, BASED ON TOOLING AT $1.60 PER UNIT, MACHINING AT $1.32 PER UNIT, AND CASTING AT 37 CENTS PER UNIT, THE ACTUAL COST FOR THIS ITEM IS FAR EXCEEDING SUCH ESTIMATED COST. BY CONTRACT, THE ATTORNEYS STATE, THE COST OF THE TOOLING IS DISTRIBUTABLE OVER THE LOT OF 3,000 CLOCKS. TALOS, IT IS EXPLAINED, IS A NEW SUPPLIER, AND THE COST OF $3.29 PER UNIT REPRESENTS THE ACTUAL QUOTATION FOR THIS FIRST PURCHASE ORDER. ACCORDINGLY, AND IN LIGHT OF THE VERIFICATION OF THE FIGURE OF $3.29 IN THE PRE-AWARD SURVEY REPORT OF MAY 6, 1969, WE BELIEVE THAT WAKMANN IS ENTITLED TO LIST THE UNIT PRICE ACTUALLY QUOTED BY ITS SUPPLIER FOR THE CASE, THE BREAKDOWN AS TO TOOLING AND MACHINING BEING SOLELY FOR WAKMANN'S BENEFIT AND HAVING NO EFFECT ON THE FIXED PRICE PAYABLE TO THE SUPPLIER.

WITH RESPECT TO THE COST OF THE PAINTING OF THE DIALS, IT MUST BE BORNE IN MIND THAT THE PAINTING IS TO BE PERFORMED BY CANRAD, WHO WILL SUPPLY THE DIAL BLANKS AND WILL FURNISH THE DIALS TO WAKMANN IN THEIR FINISHED STATE; I.E; PAINTED AND MARKED WITH THE NECESSARY GRADUATIONS FOR INSERT INTO THE CLOCK CASE WITH THE CLOCK MOVEMENT AND OTHER PARTS. THE PAINTING CHARGE, THEREFORE, WHICH IS INCLUDED IN THE UNIT PRICE OF $8.12 CHARGED BY CANRAD FOR THE COMPLETE DIALS, MUST BE REGARDED AS PART OF THE DIAL COST AND IS THEREFORE PROPERLY FOR INCLUSION IN COMPUTING THE COST OF THE DOMESTIC COMPONENTS OF THE CLOCK. AS TO THE COST OF PAINTING OF THE HANDS, NO COMMENT IS REQUIRED SINCE WE HAVE ALREADY EXCLUDED SUCH AMOUNT FROM THE COMPUTATION OF THE COST OF THE DOMESTIC COMPONENTS FOR THE REASONS STATED IN OUR DECISION OF SEPTEMBER 23, 1969.

AS TO THE "CALIBRATION" OF THE DIALS, IT IS APPARENT FROM WHAT HAS BEEN STATED ABOVE THAT THE TERM REFERS TO THE MARKING, NOT TESTING, OF THE DIALS. IN THIS CONNECTION, THE CONTRACTING OFFICER CITES THE REQUIREMENTS IN THE MILITARY SPECIFICATION FOR THE CLOCK, MIL-C-6499C, PERTAINING TO THE MARKING AND COLORING OF THE INNER AND OUTER DIAL.

IN ADDITION, YOU CLAIM THAT THE LANGER JEWEL BEARINGS, WHICH ARE REQUIRED BY THE TERMS OF THE IFB TO BE INCORPORATED IN THE MOVEMENTS, SHOULD NOT BE REGARDED AS A DOMESTIC COMPONENT OF THE CLOCK. THE BASIS FOR THIS CLAIM IS THAT THE JEWELS ARE SIMPLY PARTS OF THE MOVEMENT AND THEREFORE DO NOT CONSTITUTE A COMPONENT OF THE CLOCK AS DOES THE MOVEMENT. FURTHER, YOU ASSERT THAT IT IS IMMATERIAL WHETHER THE JEWELS ARE FURNISHED BY WAKMANN AND OMITTED FROM THE COST OF THE MOVEMENT OR PROVIDED BY THE MOVEMENT SUPPLIER AND ADDED TO THE COST OF THE MOVEMENT.

THE USE OF DOMESTIC JEWEL BEARINGS IN THE CLOCK MOVEMENTS WAS NOT NECESSARILY THE CHOICE OF WAKMANN OR ANY OTHER BIDDER; RATHER, THE JEWEL BEARINGS REQUIREMENT CLAUSE, PRESCRIBED BY ASPR 1-315 (E) AND INCORPORATED IN THE IFB, STATED THAT JEWEL BEARINGS "SHALL BE PROCURED" FROM THE WILLIAM LANGER JEWEL BEARING PLANT, ROLLA, NORTH DAKOTA, AND WAIVER OF THE REQUIREMENT BY THE CONTRACTING OFFICER WAS AUTHORIZED ONLY UPON DETERMINATION THAT SUCH ACTION WOULD BE IN THE GOVERNMENT'S INTEREST. WAIVER WAS GRANTED TO WAKMANN. WHILE THIS OFFICE HAS HELD THAT IN CERTAIN CIRCUMSTANCES FOREIGN ARTICLES OR SUPPLIES MAY LOSE THEIR IDENTITY WHEN MERGED INTO COMPONENTS MANUFACTURED IN THE UNITED STATES, WE ARE UNABLE TO AGREE WITH YOUR CONTENTION THAT THE DOMESTIC JEWEL BEARINGS IN THE INSTANT CASE, BEING AN ITEM SPECIFICALLY REQUIRED BY THE CONTRACT SPECIFICATIONS, LOSE THEIR IDENTITY AS DOMESTIC ARTICLES OR COMPONENTS WHEN INCORPORATED INTO A SWISS CLOCK MOVEMENT AS PART OF SUCH MOVEMENT. WE ARE THEREFORE OF THE OPINION THAT THERE IS ADEQUATE JUSTIFICATION FOR THE POSITION TAKEN BY THE CONTRACTING OFFICER IN THIS CASE THAT THE JEWEL BEARINGS SHOULD BE CONSIDERED AS SEPARATE COMPONENTS OF THE END ITEM, THE A-13A AIRCRAFT CLOCK (SEE B-151351, NOVEMBER 13, 1963), AND WE MUST CONCLUDE THAT THE COST OF THE JEWEL BEARINGS WAS PROPERLY CONSIDERED AS AN ELEMENT OF THE TOTAL COST OF THE DOMESTIC COMPONENTS OF THE END ITEM. WITH RESPECT TO THE SIGNIFICANCE OF THE INFORMATION FURNISHED BY THE SWISS SUPPLIER ON THE CUSTOMS FORM CONCERNING THE SELLING PRICE OF THE RAW MOVEMENT TO WAKMANN, IT WOULD APPEAR THAT SUCH PRICE MUST BE CONSIDERED AS CORRECT. IF THERE IS ANY FURTHER QUESTION AS TO WHETHER WALTHAM HAS BEEN CHARGED HIGHER IMPORT DUTIES ON THE SAME MOVEMENT IT WOULD BE FOR CONSIDERATION BY THE BUREAU OF CUSTOMS, UNITED STATES TREASURY DEPARTMENT.

FROM THE FOREGOING, IT IS APPARENT THAT THE FOREIGN COMPONENTS WHICH WAKMANN PLANNED TO INCORPORATE IN EACH OF THE END ITEMS WERE THE RAW CLOCK MOVEMENT, THE FOUR HANDS, TWO KNOBS AND ONE "O" RING. USING THE FIGURES LISTED IN WAKMANN'S PRE-AWARD LETTER OF JUNE 10, 1969, AND THE FOREIGN EXCHANGE RATE APPLICABLE TO THE SWISS FRANC AS OF THE DATE OF BID OPENING, APRIL 3, 1969, THE TOTAL COST OF THE FOREIGN COMPONENTS, INCLUDING TRANSPORTATION AND CUSTOMS DUTY, AMOUNTS TO $29.97, OR 9 CENTS MORE THAN THE TOTAL OF $29.88 WHICH WAKMANN LISTED. THE TOTAL DOMESTIC COMPONENTS COST, NOT INCLUDING A UNIT COST OF $1.12 FOR A DOMESTIC SPACER RING WHICH WAKMANN'S ATTORNEYS CLAIM WAS INADVERTENTLY OMITTED FROM THE PRE-AWARD ITEMIZATION BY WAKMANN, AMOUNTS TO $30.42, OR $1.92 LESS THAN WAKMANN LISTED, BUT STILL 45 CENTS MORE THAN THE TOTAL COST OF THE FOREIGN COMPONENTS. IN THE CIRCUMSTANCES, WE BELIEVE THAT THE EVIDENCE OF RECORD SUPPORTS THE ADMINISTRATIVE DETERMINATION THAT UNDER THE CRITERIA SET FORTH IN THE BUY AMERICAN ACT CLAUSE WAKMANN'S CLOCK WAS REQUIRED TO BE REGARDED AS A DOMESTIC SOURCE END PRODUCT.

FOR THE REASONS STATED, OUR DECISION OF SEPTEMBER 23, 1969, IS AFFIRMED.