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B-152859, MAR. 9, 1964

B-152859 Mar 09, 1964
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TO THE SECRETARY OF THE AIR FORCE: ENCLOSED IS A COPY OF OUR DECISION OF TODAY ON THE PROTEST BY CAREY O- MADIGAN ASSOCIATES. THE ABOVE MATTER WAS THE SUBJECT OF A REPORT FROM THE CHIEF. IT IS SHOWN THAT A DISPUTE AROSE AS TO WHETHER AWARD WOULD HAVE BEEN REQUIRED PURSUANT TO FEDERAL SUPPLY SCHEDULE. IF SUCH SCHEDULE WERE A "MANDATORY FEDERAL SUPPLY SCHEDULE.'. WE WISH TO POINT OUT THAT WHILE AN OPEN MARKET PURCHASE FOR AN ITEM IS ORDINARILY NOT PERMITTED IF INITIATED AFTER THAT ITEM APPEARS IN A "MANDATORY FEDERAL SUPPLY SCHEDULE" AN AWARD MAY NOT BE MADE FOR THAT ITEM TO A BIDDER WHO DOES NOT ATTEMPT TO OBTAIN A CONTRACT FROM THE FEDERAL SUPPLY SERVICE (FSS) OR REDUCE HIS PRICE UNDER HIS EXISTING FSS CONTRACT UNTIL AFTER AN OPENING OF BIDS DISCLOSES THAT HIS BID PRICE OR HIS EXISTING FSS CONTRACT PRICE IS NOT AS LOW AS THE PRICE SUBMITTED BY ANOTHER FIRM.

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B-152859, MAR. 9, 1964

TO THE SECRETARY OF THE AIR FORCE:

ENCLOSED IS A COPY OF OUR DECISION OF TODAY ON THE PROTEST BY CAREY O- MADIGAN ASSOCIATES, AGAINST THE ISSUANCE OF DELIVERY ORDER NO. 01-601 64- 7141, FOR 21 PAPER PULPING MACHINES UNDER FEDERAL SUPPLY SCHEDULE CONTRACT NO. GS-00S-45977 TO SOMAT CORPORATION BY BROOKLEY AIR FORCE BASE.

THE ABOVE MATTER WAS THE SUBJECT OF A REPORT FROM THE CHIEF, PROCUREMENT OPERATIONS DIVISION, DATED JANUARY 3, 1964. IN THAT REPORT, IT IS SHOWN THAT A DISPUTE AROSE AS TO WHETHER AWARD WOULD HAVE BEEN REQUIRED PURSUANT TO FEDERAL SUPPLY SCHEDULE, FSC GROUP 36, PART 2, IF SUCH SCHEDULE WERE A "MANDATORY FEDERAL SUPPLY SCHEDULE.' SEE ASPR 5-102. IN THIS REGARD, WE WISH TO POINT OUT THAT WHILE AN OPEN MARKET PURCHASE FOR AN ITEM IS ORDINARILY NOT PERMITTED IF INITIATED AFTER THAT ITEM APPEARS IN A "MANDATORY FEDERAL SUPPLY SCHEDULE" AN AWARD MAY NOT BE MADE FOR THAT ITEM TO A BIDDER WHO DOES NOT ATTEMPT TO OBTAIN A CONTRACT FROM THE FEDERAL SUPPLY SERVICE (FSS) OR REDUCE HIS PRICE UNDER HIS EXISTING FSS CONTRACT UNTIL AFTER AN OPENING OF BIDS DISCLOSES THAT HIS BID PRICE OR HIS EXISTING FSS CONTRACT PRICE IS NOT AS LOW AS THE PRICE SUBMITTED BY ANOTHER FIRM. CF. 5 COMP. GEN. 755 AND B-148889, DATED AUGUST 9, 1962. SEE ALSO SECTION 303.01,"SCOPE AND APPLICABILITY" (OF FSS CONTRACTS), OF TITLE I OF GSA PERSONAL PROPERTY MANAGEMENT REGULATIONS, WHICH PROVIDES:

"303.01 SCOPE AND APPLICABILITY.--- THIS SECTION PRESCRIBES THE METHODS TO BE USED IN OBTAINING ITEMS COVERED BY FEDERAL SUPPLY SCHEDULE CONTRACTS. ALL EXECUTIVE AGENCIES SHALL PROCURE NEEDED ARTICLES AND SERVICES FROM FEDERAL SUPPLY SCHEDULE CONTRACTS IN ACCORDANCE WITH THE PROVISIONS OF THE APPROPRIATE FEDERAL SUPPLY SCHEDULE. THE GENERAL PRINCIPLES AND METHODS PRESCRIBED IN THIS SECTION APPLY TO ALL SUCH PROCUREMENT. CONSEQUENTLY, PRIOR TO INITIATING PROCUREMENT DIRECTLY FROM COMMERCIAL SOURCES, AGENCY ACTIVITIES SHALL DETERMINE WHETHER THE REQUIRED ITEM IS AVAILABLE FROM A FEDERAL SUPPLY SCHEDULE. THE FEDERAL SUPPLY SCHEDULE CHECKLIST AND GUIDE (SEE 303.02.C, BELOW) IS A READY REFERENCE FOR SUCH INFORMATION.'

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