B-117589, MAY 23, 1955, 34 COMP. GEN. 624

B-117589: May 23, 1955

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CONTRACTS - NEGOTIATION - FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT WHERE STOCKS OF STEEL SHELVING PANELS ON HAND ARE UNUSABLE WITHOUT ADDITIONAL PANELS WHICH WILL INTERMEMBER. ONLY ONE MANUFACTURER'S PANELS WILL INTERMEMBER. CONTRACT MAY BE NEGOTIATED WITH THAT MANUFACTURER UPON A FINDING BY THE GENERAL SERVICES ADMINISTRATION THAT IT IS IMPRACTICABLE TO SECURE COMPETITION AS REQUIRED BY SECTION 302C (9) OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949. 955: REFERENCE IS MADE TO YOUR LETTER OF MAY 13. WHEREIN IT WAS STATED THAT INVITATION NO. WAS CANCELED BECAUSE THE JUSTIFICATION SUBMITTED BY THE DEPARTMENT OF THE NAVY WAS NOT SUFFICIENT TO SUPPORT THE USE OF A BRAND NAME IN THE INVITATION FOR BIDS.

B-117589, MAY 23, 1955, 34 COMP. GEN. 624

CONTRACTS - NEGOTIATION - FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT WHERE STOCKS OF STEEL SHELVING PANELS ON HAND ARE UNUSABLE WITHOUT ADDITIONAL PANELS WHICH WILL INTERMEMBER, AND ONLY ONE MANUFACTURER'S PANELS WILL INTERMEMBER, CONTRACT MAY BE NEGOTIATED WITH THAT MANUFACTURER UPON A FINDING BY THE GENERAL SERVICES ADMINISTRATION THAT IT IS IMPRACTICABLE TO SECURE COMPETITION AS REQUIRED BY SECTION 302C (9) OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949.

COMPTROLLER GENERAL CAMPBELL TO THE ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION, MAY 23, 955:

REFERENCE IS MADE TO YOUR LETTER OF MAY 13, 1955, REFERRING TO YOUR LETTER OF MAY 3, 1954, WHEREIN IT WAS STATED THAT INVITATION NO. LA 1680, ISSUED BY THE FEDERAL SUPPLY SERVICE AT LOS ANGELES, CALIFORNIA, WAS CANCELED BECAUSE THE JUSTIFICATION SUBMITTED BY THE DEPARTMENT OF THE NAVY WAS NOT SUFFICIENT TO SUPPORT THE USE OF A BRAND NAME IN THE INVITATION FOR BIDS.

YOU NOW ADVISE THAT A SURVEY AT THE UNITED STATES NAVAL TEST STATION LOCATED IN INYOKERN, CALIFORNIA, AND ADDITIONAL FACTS PRESENTED BY THE DEPARTMENT OF THE NAVY, DISCLOSED THAT ORDINARILY THE REQUIREMENTS FOR STEEL SHELVING WOULD BE SUPPLIED BY THE FEDERAL PRISON INDUSTRIES PURSUANT TO FEDERAL SPECIFICATION AA-S-271 BUT, DUE TO A SHORTAGE OF STEEL DURING THE PERIOD 1950 TO 1952, THE FEDERAL PRISON INDUSTRIES AUTHORIZED THE GENERAL SERVICES ADMINISTRATION TO PROCURE THE REQUIREMENTS ON THE OPEN MARKET.

YOU ADVISE FURTHER THAT AS A RESULT OF PROCUREMENTS DURING THE PERIOD OF THE SHORTAGE A NUMBER OF ENDS AND BACK PANELS HAVING A VALUE OF SOME $4,000 ARE NOW ON HAND WHICH DO NOT INTERMEMBER WITH SPECIFICATION SHELVING. YOU PROPOSE, THEREFORE, IN THE INTEREST OF ECONOMY, TO NEGOTIATE A CONTRACT PURSUANT TO SECTION 302C (9) OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949, 63 STAT. 394, AS AMENDED, FOR THE PROCUREMENT OF A SUFFICIENT NUMBER OF PARTS OF LYON'S SHELVING WHICH WILL PERMIT THE UTILIZATION OF THE EXISTING STOCKS OF ENDS AND BACK PANELS NOW ON HAND, IT BEING STATED THAT NO OTHER SHELVING WILL INTERMEMBER WITH THOSE PARTS. FINALLY, YOU ADVISED THAT, IN THE EVENT A " FEDERAL SPECIFICATION PRODUCT IS NOW ORDERED, EXISTING STOCKS WILL HAVE TO BE DECLARED SURPLUS AND THERE WILL BE A RESULTING OVERALL ADDITIONAL COST TO THE GOVERNMENT OF APPROXIMATELY $8,000.00.'

IN VIEW OF THE FACTS PRESENTED IN YOUR LETTER, WE PERCEIVE NO LEGAL OBJECTION TO THE NEGOTIATION OF A CONTRACT FOR LYON'S SHELVING AS PROPOSED BY YOU, PROVIDED YOUR AGENCY FINDS THAT "IT IS IMPRACTICABLE TO SECURE COMPETITION" FOR SUCH SHELVING, AS REQUIRED BY SECTION 302C (9) OF YOUR ACT.