B-146323, SEP. 18, 1961
Highlights
TO THE POSTMASTER GENERAL: THERE IS ENCLOSED A COPY OF OUR DECISION OF TODAY TO THE BAUMGARTEN COMPANY REGARDING ITS PROTEST AGAINST THE AWARD OF A CONTRACT TO HANLEY POSTAL SUPPLY. THE PROTEST WAS THE SUBJECT OF A REPORT DATED JULY 31 FROM YOUR GENERAL COUNSEL. OUR AUDITORS HAVE FOUND THAT DURING THE PERIOD FROM JULY 6. THE DATE THE FIRST ORDER WAS PLACED UNDER THE CONTRACT. YOUR DEPARTMENT PURCHASED STAMPS FROM ANOTHER SOURCE AT A PRICE OF $683.15 WHEREAS IF THOSE STAMPS HAD BEEN PURCHASED FROM THE CONTRACTOR AT THE PRICES STIPULATED IN THE CONTRACT THE COST TO THE GOVERNMENT WOULD HAVE BEEN $425.75. WE ASSUME THAT THIS EXCESS COST TO THE GOVERNMENT AS WELL AS THE PROTEST INVOLVED RESULTED FROM THE APPARENT FACT THAT SUFFICIENT LEAD TIME WAS NOT ALLOWED FOR CONSUMMATION OF THIS CONTRACT.
B-146323, SEP. 18, 1961
TO THE POSTMASTER GENERAL:
THERE IS ENCLOSED A COPY OF OUR DECISION OF TODAY TO THE BAUMGARTEN COMPANY REGARDING ITS PROTEST AGAINST THE AWARD OF A CONTRACT TO HANLEY POSTAL SUPPLY, INC., FOR FURNISHING RUBBER POSTMARKING AND CANCELLING STAMPS DURING THE FISCAL YEAR 1962. THE PROTEST WAS THE SUBJECT OF A REPORT DATED JULY 31 FROM YOUR GENERAL COUNSEL.
IN ADDITION TO THE MATTERS REFERRED TO IN OUR DECISION, OUR AUDITORS HAVE FOUND THAT DURING THE PERIOD FROM JULY 6, 1961, THE DATE OF THE AWARD OF THE CONTRACT, TO JULY 13, 1961, THE DATE THE FIRST ORDER WAS PLACED UNDER THE CONTRACT, YOUR DEPARTMENT PURCHASED STAMPS FROM ANOTHER SOURCE AT A PRICE OF $683.15 WHEREAS IF THOSE STAMPS HAD BEEN PURCHASED FROM THE CONTRACTOR AT THE PRICES STIPULATED IN THE CONTRACT THE COST TO THE GOVERNMENT WOULD HAVE BEEN $425.75, OR $257.40 LESS. WE ASSUME THAT THIS EXCESS COST TO THE GOVERNMENT AS WELL AS THE PROTEST INVOLVED RESULTED FROM THE APPARENT FACT THAT SUFFICIENT LEAD TIME WAS NOT ALLOWED FOR CONSUMMATION OF THIS CONTRACT. WE SUGGEST THAT CORRECTIVE ACTION TO AVOID ANY RECURRENCE OF SIMILAR SITUATIONS IN THE FUTURE SHOULD BE TAKEN BY YOUR DEPARTMENT.
THE EXHIBITS FURNISHED WITH YOUR GENERAL COUNSEL'S REPORT ARE RETURNED AS REQUESTED.