B-168366, JUN. 25, 1970

B-168366, JUN. 25, 1970

TO DURYEA, CARPENTER & BARNES:

REFERENCE IS MADE TO YOUR INQUIRY FORWARDED HERE RAISING FURTHER QUESTIONS ON BEHALF OF SILICON SYSTEMS, INCORPORATED, WITH REGARD TO THE AWARD OF A COST-PLUS-A-FIXED-FEE CONTRACT TO THE PRESTOLITE COMPANY UNDER REQUEST FOR QUOTATIONS NO. DAAE07-69-Q-0892, ISSUED BY THE UNITED STATES ARMY TANK-AUTOMOTIVE COMMAND.

AS STATED IN OUR DECISION TO SILICON SYSTEMS DATED JANUARY 16, 1970 (B- 168366), THE REQUEST FOR QUOTATIONS REQUIRED THE SUCCESSFUL OFFEROR TO DEVELOP, FABRICATE AND DELIVER 12 PROTOTYPE SOLID STATE CAPACITOR DISCHARGE IGNITION SYSTEMS AND 100 ANNULAR GAP SPARK PLUGS AND TO PREPARE SPECIFICATIONS AND DRAWINGS. THE PROTOTYPE AND SPARK PLUGS WERE FOR GOVERNMENT ENDURANCE TESTING OF THE SYSTEM. IN OUR DECISION WE NOTED THAT WHILE THE RELATIVE DIFFERENCE IN TECHNICAL MERITS BETWEEN THE PROPOSALS OF PRESTOLITE COMPANY AND SILICON SYSTEMS WAS NOT SUBSTANTIAL, WE FOUND NO BASIS TO QUESTION THE EVALUATION OF PROPOSALS OR TO OTHERWISE JUSTIFY DISTURBING THE AWARD.

YOU QUESTION THE NATURE OF THE INQUIRY WHICH CAUSED COLONEL GARDNER TO OBTAIN STATEMENTS FROM SILICON SYSTEMS PERSONNEL. IN THIS REGARD WE QUOTE FROM THE CONTRACTING OFFICER'S STATEMENT DATED MAY 20, 1970:

"SILICON SYSTEMS, INCORPORATED IN A LETTER DATED 6 OCTOBER 1969 TO ITS ATTORNEYS, DURYEA, CARPENTER AND BARNES ALLEGED THAT THE U. S. ARMY TANK- AUTOMOTIVE COMMAND HAD NOT ACTED IN THE BEST INTERESTS OF THE GOVERNMENT IN AWARDING THE CONTRACT TO PRESTOLITE COMPANY. SILICON FURTHER ALLUDED THAT THE DECISION TO AWARD WAS INFLUENCED BY A FEW MARKETING LUNCHES. THE SILICON ATTORNEYS IN A COMMUNICATION DATED 7 NOVEMBER 1969 URGED THAT AN 'IMMEDIATE INQUIRY SHOULD BE LAUNCHED TO GET TO THE BOTTOM OF THIS SITUATION.' THE LETTERS OF 6 OCTOBER AND 7 NOVEMBER TOGETHER WITH THE CHRONOLOGICAL LIST OF EVENTS FURNISHED BY SILICON TO ITS ATTORNEYS ARE APPENDED (TAB B).

"THE FOREGOING LETTERS CAUSED THE U. S. ARMY TANK-AUTOMOTIVE COMMAND TO MAKE AN INDEPENDENT INVESTIGATION INTO THE PROPRIETY OF ACTIONS BY ITS PERSONNEL RELATIVE TO THE PREPARATION OF REQUEST FOR QUOTATION NO. DAAE07- 69-Q-0892 AND THE AWARD OF A COST-PLUS-A-FIXED-FEE CONTRACT NO. DAAE07-70- C-0111 TO THE PRESTOLITE COMPANY, DIVISION OF ELTRA CORPORATION. COLONEL GARDINER'S VISIT TO SILICON SYSTEMS, INCORPORATED ON 14 JANUARY 1970 WAS IN CONJUNCTION WITH THIS INDEPENDENT INVESTIGATION. UPON COMPLETION, THE INVESTIGATION CONFIRMED THAT THE CONDUCT, ACTIONS AND DECISION BY U. S. ARMY TANK-AUTOMOTIVE COMMAND PERSONNEL IN THIS MATTER WERE PROPER."

WITH REGARD TO YOUR INQUIRY AS TO WHETHER THE DEPARTMENT OF THE ARMY WOULD ACCEPT SILICON SYSTEMS PRODUCT, WITH OR WITHOUT FUNDING BY THE ARMY FOR TESTING AND COMPARISON TO THE PRESTOLITE COMPANY PRODUCT, WE QUOTE FROM THE CONTRACTING OFFICER'S STATEMENT:

"TESTING OF THE PRESTOLITE COMPANY PRODUCT WILL COMMENCE DURING FY71 AND SHOULD CONTINUE THROUGH FY72. NO OBJECTION IS INTERPOSED TO A CAPACITIVE- DISCHARGE IGNITION SYSTEM TESTING OF THE SILICON SYSTEMS, INCORPORATED PRODUCT CONCURRENTLY WITH THAT OF PRESTOLITE COMPANY TESTING PROVIDED THAT:

"A. SILICON SYSTEMS, INCORPORATED FURNISHES EVIDENCE OF PREVIOUS SUCCESSFUL PERFORMANCE WHICH WILL WARRANT U. S. ARMY TANK-AUTOMOTIVE COMMAND EFFORT.

"B. A MINIMUM OF FIVE (5) TEST SAMPLES, INCLUDING SPARK PLUGS, ARE MADE AVAILABLE BY SILICON SYSTEMS, INCORPORATED AT NO COST TO THE GOVERNMENT.

"C. THE TESTING SAMPLES PROVIDED MUST BE OF A CONFIGURATION APPLICABLE TO THE M151 ENGINE AND MUST CONFORM TO THE BASIC ENVIRONMENTAL REQUIREMENTS OF SPECIFICATION MIL-D-13791D. THIS SPECIFICATION WILL BE FURNISHED TO SILICON SYSTEMS UPON REQUEST. A COMMERCIAL VERSION OF THE CAPACITIVE- DISCHARGE IGNITION SYSTEM WILL NOT BE ACCEPTABLE FOR TESTING.

"D. SILICON SYSTEMS, INCORPORATED SHALL RELEASE AND DISCHARGE THE GOVERNMENT FROM ANY AND ALL CLAIMS, DEMANDS AND OBLIGATIONS WHICH MAY ACCRUE BY REASON OF DAMAGE TO THE TEST SAMPLES FROM ANY CAUSE WHATSOEVER. THE DEPARTMENT OF THE ARMY WILL NOT BE RESPONSIBLE FOR REHABILITATION OF THE TEST ITEMS.

"E. TESTING AND EVALUATION WILL BE ACCOMPLISHED IN ACCORDANCE WITH ESTABLISHED GOVERNMENT PRIORITIES, MILITARY REQUIREMENTS, AND SUBJECT TO THE AVAILABILITY OF FUNDS, MANPOWER AND TESTING EQUIPMENT.

"F. TRANSPORTATION, SUPPORT REQUIREMENTS AND SPARE PARTS WILL BE PROVIDED BY SILICON SYSTEMS, INCORPORATED AT NO COST TO THE GOVERNMENT.

"G. THE ACCEPTANCE OF THE TEST PRODUCTS DOES NOT IMPOSE ANY OBLIGATION ON THE GOVERNMENT OR SIGNIFY A FIRM INTENTION OF THE GOVERNMENT TO ENTER INTO A SUPPLY CONTRACT."

IN VIEW OF THE RESPONSES TO YOUR QUESTIONS, WE FIND NO BASIS TO MODIFY OUR DECISION OF JANUARY 16, 1970.