B-128196, AUG. 23, 1956

B-128196, AUG. 23, 1956

TO THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO THE PROTEST OF THE MAGNO-PLASTIC CORPORATION AGAINST A REQUEST FOR QUOTATIONS ISSUED BY HEADQUARTERS, MEMPHIS AIR FORCE DEPOT, MALLORY AIR FORCE STATION, DIRECTORATE, PROCUREMENT AND PRODUCTION. THE PROTEST WAS FORWARDED TO YOU BY OUR LETTER OF JUNE 18, 1956, AND WAS THE SUBJECT OF A REPORT TO US DATED AUGUST 3, 1956, BY MR. DUDLEY C. SHARP, ASSISTANT SECRETARY OF THE AIR FORCE. IT IS STATED IN THE REPORT OF AUGUST 3, 1956, THAT THE PROCURING ACTIVITY HAS BEEN INSTRUCTED TO WITHHOLD AWARD OF A CONTRACT UNTIL OUR DECISION IS RECEIVED.

THE PROTEST IS BASED UPON THE CONTENTION THAT THE PROTESTANT WAS UNABLE TO SUBMIT A QUOTATION BECAUSE OF DETAILED RESTRICTIVE SPECIFICATIONS, SKETCHY QUANTITY APPROXIMATIONS, CONTRACT ADMINISTRATION AND AMBIGUITIES CREATING RISKS NOT FORESEEABLE, AND SHORT PREPARATION TIME.

IT IS STATED IN THE REPORT OF AUGUST 3, 1956, THAT DURING THE PERIOD FROM OCTOBER 15, 1954, TO JUNE 1, 1956, A CONTINUING STUDY WAS MADE BY THE DEPARTMENT OF THE AIR FORCE TO DETERMINE THE PLANT LAYOUT SYSTEM WHICH SHOULD BE ADOPTED AS THE STANDARD FOR USE WITHIN THE DEPARTMENT'S AIR MATERIEL AREAS AND MAINTENANCE DEPOTS; THAT MAGNO PLASTIC CORPORATION, AS ONE OF SEVERAL PROSPECTIVE SOURCES, WAS ADVISED OF THE AIR FORCE PROGRAM ON FEBRUARY 25, 1955, AND WAS REQUESTED TO FURNISH A BROCHURE COVERING ITS SYSTEM AND CAPABILITIES WHICH ITDID; AND THAT THE BEST FEATURES OF THE SEVERAL SYSTEMS REVIEWED WERE INCORPORATED INTO THE SPECIFICATIONS USED AS A BASIS FOR THIS PROCUREMENT. IT IS UNDERSTOOD THAT, FOR SEVERAL REASONS, IT WAS DECIDED TO NEGOTIATE THE PROCUREMENT. PROSPECTIVE BIDDERS WERE ADVISED THAT THE GOVERNMENT RESERVED THE RIGHT TO CONSIDER PROPOSALS OR MODIFICATIONS RECEIVED AFTER THE DATE INDICATED FOR SUCH PURPOSE, BUT BEFORE AWARD, SHOULD SUCH ACTION BE IN THE INTEREST OF THE GOVERNMENT AND THAT NEGOTIATIONS MIGHT BE REQUIRED AFTER RECEIPT OF QUOTATION. ONE OF THESE REASONS IS REPORTED TO HAVE BEEN THE FACT THAT THE NATURE OF THE PRODUCT AND SERVICES WHICH MIGHT BE REQUIRED MADE IT PRACTICALLY IMPOSSIBLE TO DESCRIBE THE REQUIREMENTS IN PRECISE AMOUNTS. ALSO, THERE ARE A NUMBER OF TECHNIQUES EMPLOYED IN PLANT LAYOUT AND THE AIR FORCE IS REPORTED TO HAVE CONSIDERED IT TO BE MOST DESIRABLE TO OBTAIN A NUMBER OF TECHNICAL PROPOSALS WHICH COULD BE ANALYZED AND EVALUATED AGAINST EACH OTHER TO DETERMINE THE SYSTEM WHICH WOULD BEST SATISFY THE NEEDS OF THE DEPARTMENT OF THE AIR FORCE.

THE REQUEST FOR QUOTATION REQUESTED PROPOSALS FOR FURNISHING TO THE GOVERNMENT SUCH COMPLETE ARTICLES, EQUIPMENT AND SERVICES FOR MAINTENANCE PLANT LAYOUTS CALLED FOR IN THE PURCHASE DESCRIPTION AND WORK SPECIFICATIONS, COMMENCING WITH THE DATE OF AWARD AND EXPIRING AT MIDNIGHT JUNE 30, 1957. IT STATED THAT IN ARRIVING AT THIS FORM OF BID PROPOSAL CONSIDERATION WOULD BE GIVEN TO TOTAL AMC PLANT LAYOUT REQUIREMENTS COMPLETE FOR THE ESTIMATED NEEDS SET FORTH IN THE REQUEST FOR PROPOSAL.

WITH SPECIFIC REFERENCE TO THE CONTENTIONS UPON WHICH THE PROTEST IS PREDICATED, THE STATEMENTS IN THE LETTER OF AUGUST 3, 1956, MAY BE SUMMARIZED AS FOLLOWS:

ON 11, 12 AND 13 JULY 1956, HIGHLY QUALIFIED AIR FORCE PERSONNEL MADE A COMPLETE AND IMPARTIAL EVALUATION OF THE THREE PROPOSALS THAT WERE RECEIVED IN RESPONSE TO THE REQUEST FOR QUOTATION. AS A RESULT OF THESE EVALUATIONS, IT WAS DETERMINED THAT TWO PROPOSALS--- THOSE OF MARINE MODEL COMPANY INCORPORATED, OF NEW YORK, AND MODEL LAYOUTS OF PENNSYLVANIA--- MET THE ESSENTIAL REQUIREMENTS SPECIFIED IN THE REQUEST FOR QUOTATION. EXCEPTIONS TO THE REQUIREMENTS SET OUT IN THE REQUEST FOR QUOTATION WERE SATISFACTORILY RESOLVED OR ELIMINATED. NONE OF THE FIRMS OFFERING PROPOSALS QUESTIONED THE ADEQUACY OF TIME PERMITTED QUOTATIONS, OR ALLEGED AMBIGUITY OR IMPRACTICALITY WITH RESPECT TO THE SPECIFICATIONS AND--- WITH THE EXCEPTION OF THE PROPOSAL OF REPRO TEMPLETS, INCORPORATED, OF PENNSYLVANIA--- PRICES QUOTED MET OR EXCEEDED THE DEPARTMENT'S EXPECTATIONS FOR A LOW COST MANAGEMENT TOOL. THE QUOTATIONS RECEIVED WERE ON THE BASIS OF A SQUARE FOOT. NO REASON IS APPARENT WHY MAGNO-PLASTIC COULD NOT HAVE QUOTED ON THE SAME BASIS.

THE TOTAL REQUIREMENT OF 14,600,000 SQUARE FEET OF MAINTENANCE INDUSTRIAL SPACE, AS SET FORTH IN THE REQUEST FOR QUOTATION, WAS DETERMINED AS REALISTICALLY AS POSSIBLE, TO PROVIDE A BASIS UPON WHICH EACH PROPOSER OR BIDDER COULD PREDICATE ITS PRICE. CONTRARY TO THE OPINION EXPRESSED BY THE COMPLAINANT THE AIR FORCE CONSIDERS THAT IT WOULD BE ENTIRELY POSSIBLE TO COMPLETE ALL THE WORK CALLED FOR UNDER THE SPECIFICATIONS WITHIN A 12- MONTH PERIOD.

WITH REFERENCE TO THE STATEMENT BY THE COMPLAINANT IN ITS LETTER OF JULY 7, 1956, THAT "WE HAVE DELIBERATELY REFRAINED FROM DETAILING WHEREIN THE SPECIFICATIONS (PARTICULARLY FOR TEMPLETS) ARE UNSOUND AND IMPRACTICAL," IT IS STATED BY THE DEPARTMENT THAT "IN THE ABSENCE OF THESE SPECIFICS WE HAVE AGAIN EVALUATED THE SPECIFICATIONS AS WRITTEN AND HAVE CONCLUDED, IN VIEW OF THE NATURE OF THE PRODUCT AND SERVICES BEING PROCURED, THAT THESE SPECIFICATIONS ARE REASONABLE.'

IT IS STATED FURTHER THAT IN THE DEPARTMENT'S EVALUATION OF THE VARIOUS TECHNIQUES FOR PLANT LAYOUTS, BOTH BEFORE AND AFTER THIS PROCUREMENT WAS INITIATED, IT WAS FOUND THAT THE MOST SATISFACTORY, EFFICIENT, FLEXIBLE, AND ECONOMICAL MEANS OF ACCOMPLISHING THE NECESSARY PLANNING FOR PLANT LAYOUTS, FOR THE INDUSTRIAL PLANT FACILITIES INVOLVED, WOULD BE THROUGH THE USE OF THE TWO-DIMENSIONAL NON-MAGNETIZED TEMPLET SYSTEM.

THE REPORT OF AUGUST 3, 1956, CONTINUES WITH THE FOLLOWING STATEMENTS:

"FOR YOUR FURTHER INFORMATION, THE MAGNO-PLASTIC SYSTEM IS NOT SUSCEPTIBLE TO DIRECT PROCESS REPRODUCTION OF MASTER LAYOUTS WITH OZALID EQUIPMENT WHICH EQUIPMENT IS ALREADY IN THE AIR FORCE SYSTEM. THE MAGNO- PLASTIC SYSTEM, BECAUSE OF THE APPROXIMATE 1/4 INCH THICKNESS OF ITS TEMPLETS, WILL NOT GO THROUGH AN OZALID MACHINE. EVEN IF THIS WERE POSSIBLE, MAGNETIZED TEMPLETS WOULD NOT ADHERE TO OR RETAIN THEIR SCALED POSITION ON THE GRID. MAXIMUM THICKNESS OF MATERIAL THAT WILL SATISFACTORILY FOLLOW THE ROLLER CONTOUR OF THE OZALID IS APPROXIMATELY .0145 INCHES. COMBINING THE THICKNESS OF THE GRID MAT AND THE TEMPLETS OF THE TRUE 2D SYSTEM, THE OZALID EFFECTIVELY PROVIDES FOR NECESSARY REPRODUCTION OF MASTER LAYOUTS. THE THICKNESS OF THE MAGNO-PLASTIC TEMPLET (APPROACHING A THIRD NON SCALED DIMENSION) IS REQUIRED FOR IMBEDDING OF MAGNETS. THIS SYSTEM REQUIRES THE USE OF ACCESSORY EQUIPMENT (NOT NOW IN THE AIR FORCE SYSTEM) FOR REPRODUCTION OF THE MASTER LAYOUTS.'

IT THUS APPEARS THAT THE COMPLAINT OF THE MAGNO-PLASTIC CORPORATION IS WITHOUT SUFFICIENT BASIS TO JUSTIFY OUR OFFICE IN RAISING ANY OBJECTION TO THE ADMINISTRATIVE ACTION TAKEN IN THE MATTER.

SECTION 2 (C) (10) OF THE ARMED SERVICES PROCUREMENT ACT OF 1947, 62 STAT. 21, PURSUANT TO WHICH IT IS UNDERSTOOD IT WAS ADMINISTRATIVELY CONCLUDED TO NEGOTIATE THE PROCUREMENT, PROVIDES THAT ALL PURCHASES AND CONTRACTS FOR SUPPLIES AND SERVICES MAY BE NEGOTIATED WITHOUT ADVERTISING FOR BIDS WHEN IT IS DETERMINED BY THE AGENCY HEAD CONCERNED THAT "IT IS IMPRACTICABLE TO SECURE COMPETITION.' THE LEGALITY OF A CONTRACT AWARDED PURSUANT TO THIS SECTION WOULD DEPEND UPON WHETHER THE ADMINISTRATIVE DETERMINATION THAT IT WAS IMPRACTICABLE TO ADVERTISE BECAUSE OF THE NATURE OF THE EQUIPMENT AND SERVICES WHICH MIGHT BE REQUIRED AND THE TECHNIQUES INVOLVED IN PLANT LAYOUTS, WAS JUSTIFIED.

CONSIDERING THE APPARENT LACK OF ADEQUATE SPECIFICATIONS FOR THE LAYOUT SYSTEM AT THE TIME THE PROCUREMENT WAS INITIATED AND SINCE IT IS UNDERSTOOD THAT THERE IS NOW AN URGENT NEED FOR THE SYSTEM WHICH LATER IS TO BE USED ON A WORLDWIDE BASIS, WE PERCEIVE NO OBJECTION TO THE NEGOTIATION OF THE CONTRACT IN THE MANNER PROPOSED.