B-158011, FEB. 9, 1966

B-158011, FEB. 9, 1966

TO THE AUTO-TEST INCORPORATED:

REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 1, 1966, IN EFFECT REQUESTING RECONSIDERATION OF OUR DECISION OF JANUARY 28, 1966, B 158011, CONCERNING YOUR PROTEST AGAINST AWARD OF CONTRACT TO SUN ELECTRIC CORPORATION UNDER INVITATION FOR BIDS NO. 41-608-66-163, ISSUED BY SAN ANTIONIO AIR MATERIEL AREA, KELLY AIR FORCE BASE, TEXAS.

BRIEFLY, THE FACTS ADMINISTRATIVELY REPORTED AND SET FORTH IN OUR DECISION OF JANUARY 28, 1966, SHOWED THAT YOUR FIRM, WHILE LOW BIDDER, DID NOT RECEIVE AWARD OF CONTRACT UNDER THE SUBJECT INVITATION BECAUSE THE CONTRACTING OFFICER DETERMINED YOUR BID TO BE NONRESPONSIVE WITH RESPECT TO DELIVERY REQUIREMENTS, AND AWARD OF CONTRACT WAS THEREUPON MADE TO THE SECOND LOW BIDDER, SUN ELECTRIC CORPORATION, ON OCTOBER 29, 1965. THE DEPARTMENT OF THE AIR FORCE, UPON REEVALUATION OF THE MATTER, DETERMINED THAT YOUR BID SHOULD NOT HAVE BEEN FOUND NONRESPONSIVE BY THE CONTRACTING OFFICER, BUT SINCE SUN ELECTRIC HAD SUBSTANTIALLY PERFORMED ITS CONTRACT AS OF DECEMBER 22, 1965 (COMPLETELY FABRICATED 50 UNITS, FABRICATED 80 PERCENT OF AN ADDITIONAL 50 UNITS AND 50 PERCENT OF ALL THE REMAINING ITEMS), IT WAS CONSIDERED IN THE GOVERNMENT'S INTEREST NOT TO CANCEL THE CONTRACT WITH SUN ELECTRIC. IN THE FACE OF SUCH CIRCUMSTANCES, WE AGREED WITH THE DEPARTMENT OF THE AIR FORCE THAT IT WOULD NOT BE IN THE INTEREST OF THE GOVERNMENT TO REQUIRE CANCELLATION.

IN YOUR CURRENT LETTER, YOU CONTEND THAT THE SUN CONTRACT SHOULD BE CANCELED AND A NEW ONE OF THE SAME ORIGINAL SIZE AWARDED TO YOUR COMPANY. WHILE WE FULLY APPRECIATE YOUR POSITION, IN VIEW OF THE EXTENT OF THE CONTRACTOR'S PERFORMANCE WE BELIEVE THAT CANCELLATION OF THE SUBJECT CONTRACT IN THE INSTANT PROCUREMENT WOULD BE AGAINST THE INTEREST OF THE GOVERNMENT, TAKING INTO CONSIDERATION THE PROBABLE COST TO THE GOVERNMENT, INCLUDING THE RESULTING LOSS TO THE CONTRACTOR WHICH MIGHT POSSIBLY INVOLVE THE RECOVERY OF SUBSTANTIAL DAMAGES AGAINST THE GOVERNMENT, ETC.

WHILE IT MAY BE OF SMALL SOLACE TO YOU, ADMINISTRATIVE STEPS ARE BEING TAKEN TO PRECLUDE A RECURRENCE OF THIS SITUATION, AND IT IS EXPECTED THAT YOUR PROTEST WILL PROVE TO HAVE A SALUTARY EFFECT IN FUTURE SITUATIONS OF A SIMILAR NATURE.