B-164733, NOV. 21, 1968

B-164733, NOV. 21, 1968

TO MR. SECRETARY:

ENCLOSED IS A COPY OF OUR LETTER OF TODAY TO AVIEN, INCORPORATED, DENYING ITS PROTEST AGAINST THE AWARD MADE TO GENERAL ELECTRIC COMPANY (GE) UNDER REQUEST FOR QUOTATIONS NO. F33657-68-Q-0595 ISSUED AT WRIGHT-PATTERSON AIR FORCE BASE, OHIO. THIS MATTER WAS THE SUBJECT OF A REPORT DATED AUGUST 15, 1968, YOUR REFERENCE AFSPPCA.

AVIEN HAS ALLEGED THAT THE AWARD TO GE FOR ITS FUEL FLOW SYSTEM WAS MADE AT A "BUY-IN" PRICE, AND THAT "GE MUST IN THE FUTURE AT LEAST DOUBLE ITS BID PRICE * * * TO MEET THE CURRENT PRICE CHARGED BY IT TO THE COMMERCIAL AIRLINES FOR THIS ITEM IN SUBSTANTIALLY SIMILAR QUANTITIES.' WHILE WE ARE DENYING AVIEN'S PROTEST AGAINST THE AWARD TO GE, WE ARE NEVERTHELESS NOT UNMINDFUL OF THE ALLEGATION THAT THE GOVERNMENT WILL BE REQUIRED TO PAY SUBSTANTIALLY HIGHER PRICES IN THE FUTURE FOR THE GE SYSTEM. IF THIS IS THE CASE, SERIOUS DOUBT WOULD BE CAST ON THE ADEQUACY OF THE PROCESS WHEREBY YOUR DEPARTMENT SELECTED THE ORIGINAL MANUFACTURER.

IN THIS REGARD, AVIEN HAS SUGGESTED TO US THAT SINCE YOUR DEPARTMENT WILL BE PROCURING THIS SYSTEM FOR THE NAVY ALSO, IT MIGHT BE FEASIBLE TO PURCHASE THE SYNCHRO DESIGN FOR THE NAVY AND THE SECOND HARMONIC DESIGN FOR THE AIR FORCE. WE ARE NOT IN A POSITION TO EVALUATE THE FEASIBILITY OF SUCH PROCEDURE AND SIMPLY FORWARD IT FOR YOUR CONSIDERATION.