B-146429, SEP. 29, 1961

B-146429, SEP. 29, 1961

TO ARISTO IMPORT COMPANY, INC.:

REFERENCE IS MADE TO YOUR LETTER DATED SEPTEMBER 15, 1961, AND TRANSMITTAL OF A COPY OF YOUR LETTER DATED SEPTEMBER 22, 1961, TO THE FRANKFORD ARSENAL, PHILADELPHIA, PENNSYLVANIA, RELATIVE TO A CONTRACT WHICH WAS AWARDED TO WAKMANN WATCH COMPANY, INC., ON THE BASIS OF ITS BID UNDER ITEM NO. 4 OF INVITATION FOR BIDS NO. ORD-36-038-61-M-423, ISSUED MAY 15, 1961. YOUR PROTEST AGAINST THE AWARD WAS CONSIDERED IN OUR DECISION TO YOU OF SEPTEMBER 13, 1961.

YOUR STATEMENTS REGARDING THE AMOUNT OF TIME AVAILABLE TO BIDDERS TO DETERMINE WHETHER THEY COULD COMPLY WITH THE JEWEL BEARING UTILIZATION REQUIREMENT OF THE INVITATION MAY BE JUSTIFIED TO SOME EXTENT BUT IT IS APPARENT THAT YOU HAVE OVERLOOKED THE FACT THAT AMENDMENT NO. 2 TO THE INVITATION EXTENDED THE BID OPENING DATE TO JUNE 9, 1961, INSTEAD OF TO MAY 31, 1961, AS ALLEGED IN YOUR LETTER. ALSO, THE ENCLOSURE OF YOUR LETTER TO OUR OFFICE EVIDENCES THE FACT THAT THE TURTLE MOUNTAIN ORDNANCE PLANT, BEING OPERATED BY BULOVA WATCH COMPANY, INC., IS IN A POSITION TO FURNISH REASONABLY PROMPT QUOTATIONS ON JEWEL BEARINGS FOR WATCHES.

YOU REFER TO THE FACT THAT YOU WERE ADVISED BY THE TURTLE MOUNTAIN ORDNANCE PLANT THAT IT WAS NOT EQUIPPED TO SUPPLY PALLET AND ROLLER JEWELS AND THAT SAMPLES OF JEWEL BEARINGS WERE NOT AVAILABLE. YOU STATE THAT AT LEAST THREE SWISS JEWELS WOULD BE REQUIRED IN THE MANUFACTURE OF THE WATCHES ON WHICH YOU WERE BIDDING AND SUGGEST THAT THE SUCCESSFUL BIDDER COULD NOT MEET DELIVERY REQUIREMENTS IF IT HAD TO DEPEND UPON THE TURTLE MOUNTAIN ORDNANCE PLANT TO FURNISH JEWELS OF THE SAME TYPES AS THOSE USED BY SWISS MANUFACTURERS. YOU HAVE FURNISHED AN ANALYSIS OF THE QUOTATIONS MADE TO YOUR COMPANY BY THE PLANT AND EXPRESSED THE OPINION THAT THE JEWEL BEARING UTILIZATION REQUIREMENT SHOULD BE ELIMINATED FROM INVITATIONS FOR BIDS WHICH REQUIRE THE SUCCESSFUL BIDDERS TO PURCHASE JEWELS IN LESS THAN 100,000 LOTS. YOU ADVISED THE FRANKFORD ARSENAL CONCERNING INFORMATION WHICH YOU RECEIVED FROM YOUR SWISS FACTORY TO THE EFFECT THAT IT IS AGAINST THE RULES OF THE COLLECTIVE CONVENTION OF THE FEDERATION HORLOGERE TO IMPORT JEWELS FOR USE IN SWISS WATCHES AND THAT THE WAKMANN WATCH FACTORY IN SWITZERLAND HAD NOT REQUESTED THAT AN EXCEPTION BE MADE TO THE RULES. YOU REQUESTED THE ARSENAL TO "MAKE SURE THAT WAKMANN HAS ACTUALLY CONTRACTED WITH THEIR SWISS FACTORY TO FIT AMERICAN JEWELS TO THEIR SWISS WATCHES.'

WE UNDERSTAND THAT THE TURTLE MOUNTAIN ORDNANCE PLANT IS BEING OPERATED PRINCIPALLY ON A STAND-BY BASIS. THIS WOULD ACCOUNT FOR THE NONAVAILABILITY OF SAMPLES. HOWEVER, YOUR LETTER OF SEPTEMBER 15, 1961, IN THE FIRST NOTICE WHICH WE HAVE RECEIVED THAT THE PLANT IS NOT EQUIPPED TO SUPPLY CERTAIN TYPES OF JEWELS WHICH ARE USED IN STOP WATCHES OF SWISS MANUFACTURE AND, POSSIBLY, IN STOP WATCHES MANUFACTURED IN THE UNITED STATES.

WE NOTE THAT WAKMANN WATCH COMPANY, INC., PROPOSED IN ITS BID TO MANUFACTURE ITEMS AT ,SWITZERLAND AND U.S.A.' THIS WOULD SEEM TO INDICATE THAT THE FIRM IS NOT WHOLLY DEPENDENT UPON ITS SWISS FACTORY IN THE MATTER OF FURNISHING STOP WATCHES TO THE MILITARY DEPARTMENTS.

IT WOULD BE THE RESPONSIBILITY OF THE DEPARTMENT OF THE ARMY TO DETERMINE WHETHER THE SUCCESSFUL BIDDER IS COMPLYING STRICTLY WITH THE JEWEL BEARING UTILIZATION REQUIREMENT OF THE CONTRACT AS AWARDED UNDER INVITATION FOR BIDS NO. ORD-36-038-61-M-423. HOWEVER, IF IT SHOULD DEVELOP THAT SOME OF THE NECESSARY JEWEL BEARINGS CANNOT BE PROCURED FROM THE TURTLE MOUNTAIN ORDNANCE PLANT, A MODIFICATION OF THE CONTRACT TO PERMIT THE SUBSTITUTION OF SWISS JEWELS FOR THOSE WHICH CANNOT BE OBTAINED FROM THE DOMESTIC SOURCE WOULD APPEAR TO BE WARRANTED, SINCE THE CONTRACT COULD NOT OTHERWISE BE PERFORMED AND BIDDERS HAD THE RIGHT TO EXPECT THAT THE TURTLE MOUNTAIN ORDNANCE PLANT COULD SUPPLY JEWEL BEARINGS MEETING THEIR PARTICULAR SPECIFICATIONS.

WITH RESPECT TO YOUR SUGGESTION THAT THE PROCUREMENT POLICY SHOULD BE CHANGED TO PERMIT THE USE OF SWISS JEWELS WHEN PURCHASES OF JEWELS FOR WATCHES ARE REQUIRED TO BE MADE IN LESS THAN 100,000 LOTS, WE ARE FORWARDING COPIES OF YOUR LETTER DATED SEPTEMBER 15, 1961, AND OF ITS ENCLOSURE, TO THE DEPARTMENT OF THE ARMY FOR SUCH ACTION AS MAY BE DEEMED APPROPRIATE IN THE PARTICULAR CIRCUMSTANCES.