B-164633, OCT. 14, 1968

B-164633, OCT. 14, 1968

TO MR. SECRETARY:

ENCLOSED IS A COPY OF A DECISION OF TODAY, B-164633, CONCERNING THE AWARD OF A QPL ITEM UNDER A NAVY PROCUREMENT.

IN THIS CASE WE CONSIDERED THE QUESTION OF EXTENDING PRODUCT QUALIFICATION TO NEW MANAGEMENT AT A PLANT ALREADY LISTED ON A QPL. THE PLANT HAD BEEN ORIGINALLY LISTED IN 1964 UNDER THE MANAGEMENT OF LAVOIE LABORATORIES. LAVOIE EXPERIENCED FINANCIAL DIFFICULTIES, HOWEVER, AND PURSUANT TO COURT ORDER WAS SOLD IN BANKRUPTCY TO SPEDCOR IN JANUARY 1967. IN MAY 1968 SPEDCOR REQUESTED THAT IT BE LISTED ON THE QPL IN LIEU OF LAVOIE LABORATORIES. THE NAVY DECIDED AGAINST EXTENDING QPL STATUS TO SPEDCOR WITHOUT UNDERGOING QUALIFICATION TESTING.

WE DO NOT QUESTION THE NAVY'S JUDGMENT IN THIS RESPECT. PRESUMABLY THE 1964 LAVOIE QUALIFICATION PROVIDED LITTLE ASSURANCE OF SPEDCOR'S ABILITY TO PRODUCE THE QUALIFIED ITEM IN 1968.

THE QUESTION OF EXTENDING PRODUCT QUALIFICATION TO A NEW MANAGEMENT HAS BEEN CONSIDERED BY OUR OFFICE BEFORE. IN B-161414 DATED SEPTEMBER 5, 1967, WE CONSIDERED A PROTEST BASED ON AN AIR FORCE DETERMINATION TO EXTEND PRODUCT QUALIFICATION UNDER CIRCUMSTANCES SOMEWHAT SIMILAR TO THIS CASE. THE AIR FORCE WAS PROCURING A QUALIFIED PRODUCT (TEST SET, GENERATOR, TACHOMETER TYPE TIU-27/E), AND THE LOW BIDDER WAS THE NEW OWNER OF A PLANT PREVIOUSLY QUALIFIED ON THE ITEM. WE CONCLUDED THAT WE COULD NOT QUESTION THE AIR FORCE'S DETERMINATION TO EXTEND PRODUCT QUALIFICATION TO THE NEW OWNER. AT THE SAME TIME, WE NOTED THAT THE PLANT IN QUESTION HAD NOT PRODUCED THE REQUIRED UNITS FOR A NUMBER OF YEARS, AND WE SUGGESTED THAT THERE MIGHT BE A NEED FOR THE VARIOUS ACTIVITIES PREPARING SPECIFICATIONS TO MAINTAIN A CLOSER SURVEILLANCE OF QPL-S. LETTER TO THE SECRETARY OF THE AIR FORCE DATED SEPTEMBER 5, 1967, B-161414, COPY ENCLOSED.

THE FACT REMAINS THAT IN BOTH THESE CASES THE QPL'S FOR A TIME LISTED BIDDERS NO LONGER IN EXISTENCE. THIS SEEMS TO BE AN UNAVOIDABLE PROBLEM UNDER THE CURRENT QPL PROCEDURE. UNLESS QPL'S ARE REGULARLY POLICED THEY WILL TEND TO BECOME OUT-DATED AT TIMES.

IN B-161414 WE SUGGESTED SURVEILLANCE OF QPL'S BY THE VARIOUS AGENCIES INVOLVED. PERHAPS THIS IS NOT A PRACTICAL SUGGESTION BECAUSE OF THE ADMINISTRATIVE BURDEN INVOLVED. WE OFFER ANOTHER SUGGESTION.

WE SUGGEST INTRODUCING A PROCEDURE WHEREBY QPL'S ARE MADE "SELF CLEANSING". THIS COULD BE ACCOMPLISHED BY REQUIRING ALL QUALIFIED SOURCES TO OBTAIN RENEWALS (NOT NECESSARILY REQUIRING COMPLETE REQUALIFICATION), AT APPROPRIATE INTERVALS IN APPROPRIATE CIRCUMSTANCES. WE HAVE DISCUSSED THIS SUGGESTION INFORMALLY WITH VARIOUS BIDDERS AND OFFICIALS OF THE GOVERNMENT, AND THEY THINK THAT SUCH AN APPROACH MIGHT BE FEASIBLE. PLEASE ADVISE US OF YOUR VIEWS IN THE MATTER.