B-141546, FEB. 8, 1960

B-141546: Feb 8, 1960

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

INC.: FURTHER REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 19. FROM A CAREFUL ANALYSIS OF SUCH REPORT IT APPEARS THAT YOUR FIRM SUBMITTED THE LOWEST PROPOSAL ON THE FILTERS WHICH WAS OPENED ON NOVEMBER 6. YOUR PROPOSAL WAS REJECTED BY THE CONTRACTING OFFICER ON THE BASIS OF AN ADMINISTRATIVE DETERMINATION THAT YOUR FIRM WAS NOT A . REGULAR DEALER" AS THAT TERM IS DEFINED IN SECTION 1- 201.9 (II) (A) OF THE ARMED SERVICES PROCUREMENT REGULATION. THIS LATTER DETERMINATION WAS BASED ON REPORT PREPARED BY THE INSPECTOR. IN WHICH REPORT IT WAS STATED THAT YOUR FIRM HAD NO STOCK OF OIL FILTERS OR RECORD OF SALES TO THE PUBLIC THEREOF. THAT YOU ARE NOT A REGULAR DEALER WITHIN THE PURVIEW OF SECTION 1-201.9 (II) (A) OF THE ARMED SERVICES PROCUREMENT REGULATION.

B-141546, FEB. 8, 1960

TO MANHATTAN LIGHTING EQUIPMENT CO., INC.:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 19, 1959, AND SUBSEQUENT CORRESPONDENCE, PROTESTING THE ACTION OF THE PURCHASE DIVISION, GENERAL SUPPLY DEPOT, NAVAL SUPPLY CENTER, OAKLAND, CALIFORNIA, IN REJECTING YOUR PROPOSAL SUBMITTED IN RESPONSE TO REQUEST FOR PROPOSAL NO. 228-26633, COVERING THE FURNISHING OF 112 CAST BRONZE OIL FILTERS.

THE ADMINISTRATIVE REPORT REQUESTED OF THE DEPARTMENT OF THE NAVY ON THIS MATTER HAS NOW BEEN RECEIVED. FROM A CAREFUL ANALYSIS OF SUCH REPORT IT APPEARS THAT YOUR FIRM SUBMITTED THE LOWEST PROPOSAL ON THE FILTERS WHICH WAS OPENED ON NOVEMBER 6, 1959. YOUR PROPOSAL WAS REJECTED BY THE CONTRACTING OFFICER ON THE BASIS OF AN ADMINISTRATIVE DETERMINATION THAT YOUR FIRM WAS NOT A ,REGULAR DEALER" AS THAT TERM IS DEFINED IN SECTION 1- 201.9 (II) (A) OF THE ARMED SERVICES PROCUREMENT REGULATION. THIS LATTER DETERMINATION WAS BASED ON REPORT PREPARED BY THE INSPECTOR, NAVAL MATERIAL, NEW YORK CITY, IN WHICH REPORT IT WAS STATED THAT YOUR FIRM HAD NO STOCK OF OIL FILTERS OR RECORD OF SALES TO THE PUBLIC THEREOF; THAT YOU ARE NOT A REGULAR DEALER WITHIN THE PURVIEW OF SECTION 1-201.9 (II) (A) OF THE ARMED SERVICES PROCUREMENT REGULATION; AND THAT YOUR FIRM'S PERFORMANCE RECORD WAS UNSATISFACTORY. THE ABOVE REPORT WAS BASED ON A SURVEY OF YOUR PLANT AND FACILITIES, WHICH WAS MADE BY QUALIFIED INSPECTORS OF NAVAL MATERIAL ON NOVEMBER 10, 1959.

YOU CONTEND THAT AT THE TIME OF THE SURVEY YOU SHOWED THE INSPECTORS A COPY OF A LETTER RECEIVED BY YOU FROM THE DEPARTMENT OF LABOR IN WHICH YOUR FIRM WAS CERTIFIED AS BEING QUALIFIED AS A "REGULAR DEALER" TO RECEIVE AWARDS ON THE TYPE OF ITEM BEING PROCURED. IN THIS CONNECTION, THE DEPARTMENT OF THE NAVY HAS INFORMALLY ADVISED US THAT THE OFFICE OF INSPECTOR, NAVAL MATERIAL, NEW YORK CITY, HAS DENIED THAT ITS INSPECTORS WERE SHOWN A COPY OF THE REFERRED-TO LETTER FROM THE DEPARTMENT OF LABOR.

SINCE THE FUNCTION OF DETERMINING WHO IS A REGULAR DEALER IN A NEEDED ARTICLE OR COMMODITY IS PRIMARILY THAT OF THE INTERESTED GOVERNMENTAL CONTRACTING AGENCY AND IT APPEARS THAT THE AGENCY HERE INVOLVED WAS NOT AWARE OF YOUR CERTIFICATION AS A REGULAR DEALER BY THE DEPARTMENT OF LABOR FOR THE ITEM IN QUESTION, WE WOULD NOT BE JUSTIFIED IN OBJECTING TO THE ADMINISTRATIVE ACTION TAKEN.