B-176046(2), DEC 19, 1972
Highlights
ALTHOUGH THIS PROTEST IS DENIED. CONSIDERATION SHOULD BE GIVEN TO AMENDING THE OPTION CLAUSE USED IN THIS PROCUREMENT SO AS TO PROTECT A CONTRACTOR FROM EXERCISE OF THE OPTION FOR A SMALL QUANTITY AFTER THE ITEMS ORIGINALLY ORDERED HAVE BEEN COMPLETED. WE BELIEVE CONSIDERATION SHOULD BE GIVEN TO AMENDING THE OPTION CLAUSE USED IN THIS PROCUREMENT SO THAT IN FUTURE PROCUREMENTS OF THIS ITEM THE CONTRACTOR WILL BE PROTECTED AGAINST THIS TYPE OF SITUATION DESCRIBED IN THE PROTEST. IT MAY BE APPROPRIATE TO PROVIDE THAT AN EQUITABLE ADJUSTMENT WILL BE MADE WHENEVER A BREAK IN PRODUCTION OCCURS AS A RESULT OF THE EXERCISE OF THE OPTION BY THE GOVERNMENT.
B-176046(2), DEC 19, 1972
BID PROTEST - OPTION CLAUSE CONCERNING THE DENIAL OF THE PROTEST OF CONSOLIDATED AIRBORNE SYSTEMS, INC., UNDER AN IFB ISSUED AT WRIGHT-PATTERSON AFB, OHIO, BY THE DEPARTMENT OF THE AIR FORCE. ALTHOUGH THIS PROTEST IS DENIED, CONSIDERATION SHOULD BE GIVEN TO AMENDING THE OPTION CLAUSE USED IN THIS PROCUREMENT SO AS TO PROTECT A CONTRACTOR FROM EXERCISE OF THE OPTION FOR A SMALL QUANTITY AFTER THE ITEMS ORIGINALLY ORDERED HAVE BEEN COMPLETED, THEREBY CAUSING A DISPROPORTIONATELY HIGH COST TO THE CONTRACTOR.
TO MR. SECRETARY:
WE REFER TO A LETTER DATED JULY 31, 1972, FROM THE CHIEF, CONTRACT MANAGEMENT DIVISION, HEADQUARTERS, UNITED STATES AIR FORCE, TRANSMITTING A REPORT IN CONNECTION WITH THE PROTEST OF CONSOLIDATED AIRBORNE SYSTEMS, INCORPORATED, UNDER INVITATION FOR BIDS F33657-72-B 0895, ISSUED AT WRIGHT -PATTERSON AIR FORCE BASE, OHIO.
AS INDICATED IN OUR DECISION OF TODAY, COPY ENCLOSED, WE BELIEVE CONSIDERATION SHOULD BE GIVEN TO AMENDING THE OPTION CLAUSE USED IN THIS PROCUREMENT SO THAT IN FUTURE PROCUREMENTS OF THIS ITEM THE CONTRACTOR WILL BE PROTECTED AGAINST THIS TYPE OF SITUATION DESCRIBED IN THE PROTEST. FOR EXAMPLE, IT MAY BE APPROPRIATE TO PROVIDE THAT AN EQUITABLE ADJUSTMENT WILL BE MADE WHENEVER A BREAK IN PRODUCTION OCCURS AS A RESULT OF THE EXERCISE OF THE OPTION BY THE GOVERNMENT.