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B-175496, APR 28, 1972

B-175496 Apr 28, 1972
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THERE IS NO EVIDENCE TO INDICATE THAT ANY SUBSIDIZING OF SUPPLIERS BY THE CORPORATION. OR THAT THE BIDDING PROCEDURES ESTABLISHED FOR CANADIAN FIRMS ARE OTHERWISE UNFAIR TO AMERICAN COMPANIES. TO TELEDYNE LEWISBURG: THIS IS IN REPLY TO YOUR LETTER OF MARCH 9. WHICH WAS FORWARDED HERE FOR OUR CONSIDERATION. WHO SUBMIT BIDS FOR UNITED STATES PROCUREMENTS OR EVEN HOW SUCH FIRMS ARE ALLEGED TO BE SUBSIDIZED IN EFFECT.". THE NAVY FURTHER REPORTS THAT BEACONING IS NOT THE APPARENT LOW RESPONSIVE AND RESPONSIBLE BIDDER ON SOLICITATION NO. SO THAT THERE IS NO QUESTION OF A POSSIBLY UNFAIR AWARD BEING MADE TO THAT COMPANY. THE POLICY OF THE DEPARTMENT OF DEFENSE WITH RESPECT TO CANADIAN PURCHASES IS SET FORTH IN SECTIONS 6-501 THROUGH 6-507 OF THE ARMED SERVICES PROCUREMENT REGULATION.

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B-175496, APR 28, 1972

BID PROTEST - UNFAIR SUBSIDY TO FOREIGN CORPORATIONS WITH REGARD TO AN ALLEGATION OF TELEDYNE LEWISBURG, THAT BEACONING OPTICAL, LTD., A CANADIAN COMPANY AND BIDDER ON A SOLICITATION ISSUED BY THE NAVAL ELECTRONICS COMMAND SYSTEM, WASHINGTON, D.C., HAS BEEN SUBSIDIZED BY THE CANADIAN COMMERCIAL CORPORATION AND THEREBY ALLOWED TO WIN PROCUREMENTS UNFAIRLY BY SUBMITTING LOW BIDS. SECTIONS 6-501 THROUGH 6-507 OF ASPR PROVIDE THAT CONTRACTS FOR PURCHASE FROM CANADIAN SUPPLIERS SHOULD BE ADMINISTERED THROUGH THE CANADIAN COMMERCIAL CORPORATION, A CORPORATION OWNED AND CONTROLLED BY THE GOVERNMENT OF CANADA, AS THE PRIME CONTRACTOR. HOWEVER, THERE IS NO EVIDENCE TO INDICATE THAT ANY SUBSIDIZING OF SUPPLIERS BY THE CORPORATION, OR THAT THE BIDDING PROCEDURES ESTABLISHED FOR CANADIAN FIRMS ARE OTHERWISE UNFAIR TO AMERICAN COMPANIES.

TO TELEDYNE LEWISBURG:

THIS IS IN REPLY TO YOUR LETTER OF MARCH 9, 1972, TO THE HONORABLE WILLIAM BROCK, UNITED STATES SENATE, REGARDING THE CANADIAN COMMERCIAL CORPORATION AND SOLICITATION NO. N00039-72-B-0257, ISSUED BY THE UNITED STATES NAVAL ELECTRONIC SYSTEMS COMMAND, WASHINGTON, D.C., WHICH WAS FORWARDED HERE FOR OUR CONSIDERATION.

YOU CONTEND THAT BEACONING OPTICAL, LIMITED, A CANADIAN COMPANY AND A BIDDER ON THIS SOLICITATION, HAS BEEN SUBSIDIZED BY THE CANADIAN COMMERCIAL CORPORATION AND THEREBY ALLOWED TO WIN PROCUREMENTS UNFAIRLY BY SUBMITTING LOW BIDS. IN RESPONSE TO THIS ALLEGATION, THE DEPARTMENT OF THE NAVY HAS INFORMED US THAT IT "HAS NO INFORMATION TO SUPPORT THE ALLEGATION THAT CANADIAN COMMERCIAL CORPORATION IN EFFECT OR IN FACT, SUBSIDIZES THE CANADIAN FIRMS, INCLUDING BEACONING, WHO SUBMIT BIDS FOR UNITED STATES PROCUREMENTS OR EVEN HOW SUCH FIRMS ARE ALLEGED TO BE SUBSIDIZED IN EFFECT."

THE NAVY FURTHER REPORTS THAT BEACONING IS NOT THE APPARENT LOW RESPONSIVE AND RESPONSIBLE BIDDER ON SOLICITATION NO. N00039-72-B-0257, SO THAT THERE IS NO QUESTION OF A POSSIBLY UNFAIR AWARD BEING MADE TO THAT COMPANY.

THE POLICY OF THE DEPARTMENT OF DEFENSE WITH RESPECT TO CANADIAN PURCHASES IS SET FORTH IN SECTIONS 6-501 THROUGH 6-507 OF THE ARMED SERVICES PROCUREMENT REGULATION. THAT POLICY IS TO PERMIT CANADIAN FIRMS A FAIR OPPORTUNITY TO SHARE IN THE PRODUCTION OF MILITARY EQUIPMENT AND MATERIAL INVOLVING PROGRAMS OF MUTUAL INTEREST TO BOTH CANADA AND THE UNITED STATES. THESE SECTIONS PROVIDE THAT CONTRACTS FOR PURCHASE FROM CANADIAN SUPPLIERS SHOULD BE MADE WITH AND ADMINISTERED THROUGH THE CANADIAN COMMERCIAL CORPORATION, A CORPORATION OWNED AND CONTROLLED BY THE GOVERNMENT OF CANADA, AS THE PRIME CONTRACTOR. THERE IS NOTHING IN THE REGULATION, HOWEVER, TO INDICATE THAT THERE IS ANY KIND OF SUBSIDIZING OF SUPPLIERS BY THE CANADIAN COMMERCIAL CORPORATION, OR THAT THE BIDDING PROCEDURES ESTABLISHED FOR CANADIAN FIRMS ARE OTHERWISE UNFAIR TO AMERICAN COMPANIES.

WE TRUST THAT THIS INFORMATION WILL BE HELPFUL TO YOU.

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