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B-163917, AUG. 7, 1968

B-163917 Aug 07, 1968
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KNOTT: REFERENCE IS MADE TO A LETTER DATED JULY 9. ENCLOSED IS A COPY OF OUR DECISION OF TODAY DENYING THE CORPORATION'S REQUEST. IN OUR OPINION IT WOULD HAVE BEEN TO THE GOVERNMENT'S ADVANTAGE IF F.O.B. ORIGIN PRICES WERE REQUIRED FOR EVALUATION PURPOSES. EVEN IF ONLY TOKEN WEIGHTS WERE APPLIED. AS WAS THE CASE FOR THE 178 ITEMS FOR WHICH NO PRIOR PROCUREMENT EXPERIENCE WAS HAD.

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B-163917, AUG. 7, 1968

TO MR. KNOTT:

REFERENCE IS MADE TO A LETTER DATED JULY 9, 1968, FROM YOUR GENERAL COUNSEL IN CONNECTION WITH THE REQUEST BY PENCO PRODUCTS, INC., THAT SOLICITATION NO. 35975 BE CANCELLED.

ENCLOSED IS A COPY OF OUR DECISION OF TODAY DENYING THE CORPORATION'S REQUEST.

WHILE, FOR THE REASONS STATED, WE CONCLUDED IN THIS INSTANCE THAT THE CIRCUMSTANCES DID NOT REQUIRE ANY ACTION BY OUR OFFICE IN THE MATTER, WE BELIEVE THAT THE POSITION TAKEN IN THE REPORT OF JULY 9 AS TO THE FAILURE TO SOLICIT BIDS FOR EVALUATION ON BOTH AN F.O.B. ORIGIN AND DESTINATION BASIS MAY NOT BE IN THE GOVERNMENT'S BEST INTEREST. IN OUR OPINION IT WOULD HAVE BEEN TO THE GOVERNMENT'S ADVANTAGE IF F.O.B. ORIGIN PRICES WERE REQUIRED FOR EVALUATION PURPOSES, EVEN IF ONLY TOKEN WEIGHTS WERE APPLIED, AS WAS THE CASE FOR THE 178 ITEMS FOR WHICH NO PRIOR PROCUREMENT EXPERIENCE WAS HAD. SEE 37 COMP. GEN. 174. FURTHER, WE DO NOT CONSIDER THE COMPLICATIONS INCIDENT TO SUCH EVALUATION TO BE NECESSARILY PROHIBITIVE. WE BELIEVE THAT IN FUTURE PROCUREMENTS, STEPS SHOULD BE TAKEN TO ASSURE THE USE OF THE MOST MEANINGFUL METHOD OF OBTAINING COMPETITIVE PRICES IN THIS REGARD.

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