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B-157411, NOV. 4, 1965

B-157411 Nov 04, 1965
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TO SECRETARY OF DEFENSE: WE ARE ENCLOSING A COPY OF OUR LETTER OF TODAY TO THE SECRETARY OF THE NAVY CONCERNING THE PROTEST OF WESTERN MOLDED FIBRE PRODUCTS. YOUR ATTENTION IS INVITED TO THE FACT THAT ALTHOUGH THESE PROCUREMENTS WERE INITIALLY SET ASIDE FOR SMALL BUSINESS CONCERNS AND BIDS SOLICITED UNDER SMALL BUSINESS RESTRICTED ADVERTISING PROCEDURES PURSUANT TO ARMED SERVICES PROCUREMENT REGULATION 1-706.5. - (211) IS PROPOSED TO THE ONLY SMALL BUSINESS BIDDER ON THE BASIS OF SUBSEQUENT NEGOTIATIONS WHICH RESULTED IN A REDUCTION IN ITS OTHERWISE UNREASONABLE BID PRICE. WHICH WAS SUBSEQUENTLY CLARIFIED BY AMENDMENT OF ASPR 3-210.

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B-157411, NOV. 4, 1965

TO SECRETARY OF DEFENSE:

WE ARE ENCLOSING A COPY OF OUR LETTER OF TODAY TO THE SECRETARY OF THE NAVY CONCERNING THE PROTEST OF WESTERN MOLDED FIBRE PRODUCTS, INC., AGAINST THE POSSIBLE AWARD OF CONTRACTS TO DODGE CORK COMPANY, BY THE SHIPS PARTS CONTROL CENTER, MECHANICSBURG, PENNSYLVANIA, UNDER INVITATIONS FOR BIDS NO. 104-3-66/215) AND NO. 104-18-66/211).

YOUR ATTENTION IS INVITED TO THE FACT THAT ALTHOUGH THESE PROCUREMENTS WERE INITIALLY SET ASIDE FOR SMALL BUSINESS CONCERNS AND BIDS SOLICITED UNDER SMALL BUSINESS RESTRICTED ADVERTISING PROCEDURES PURSUANT TO ARMED SERVICES PROCUREMENT REGULATION 1-706.5, AWARD ON IFB--- (211) IS PROPOSED TO THE ONLY SMALL BUSINESS BIDDER ON THE BASIS OF SUBSEQUENT NEGOTIATIONS WHICH RESULTED IN A REDUCTION IN ITS OTHERWISE UNREASONABLE BID PRICE.

WE SEE NO VALID BASIS FOR DISTINGUISHING, IN PRINCIPLE, BETWEEN THE QUESTION IN THE INSTANT PROCUREMENT AND THE QUESTION WHICH GAVE RISE TO OUR LETTER OF DECEMBER 6, 1962, B-149631, COPY ENCLOSED, AND WHICH WAS SUBSEQUENTLY CLARIFIED BY AMENDMENT OF ASPR 3-210. WE THEREFORE RECOMMEND THAT CONSIDERATION BE GIVEN TO REVISING ASPR TO CLEARLY INDICATE THAT NEGOTIATIONS TO OBTAIN REASONABLE PRICES, FOLLOWING FAILURE TO RECEIVE REASONABLE PRICES UNDER SMALL BUSINESS RESTRICTED ADVERTISING, MAY NOT BE RESTRICTED TO EITHER ONE OR ALL OF THE SMALL BUSINESS CONCERNS WHICH SUBMITTED SUCH UNREASONABLE BID PRICES.

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