B-146010, JUN. 15, 1961

B-146010: Jun 15, 1961

Additional Materials:

Contact:

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

 

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

INC.: REFERENCE IS MADE TO YOUR LETTER OF MAY 29. IT IS YOUR CONTENTION. THE ABOVE-NAMED AGENCY SHOULD RESORT TO YOUR REFERRED-TO SUPPLY CONTRACT IN ALL CASES WHERE YOUR LISTED PRICES ARE THE LOWEST QUOTATIONS AVAILABLE. YOU WERE ADVISED BY THE PROCURING AGENCY THAT ITS RECOMMENDATION TO DISREGARD YOUR CONTRACT IN OBTAINING SUCH PARTS WAS PREDICATED PRIMARILY UPON YOUR FAILURE OR REFUSAL TO SUBMIT THOSE PARTS FOR INSPECTION SO THAT THE ADMINISTRATIVE OFFICE COULD DETERMINE THEIR INTERCHANGEABILITY. PARTICULARLY IN VIEW OF THE FACT THAT SUCH PARTS HAVE BEEN PURCHASED FROM SOURCES OTHER THAN THE ORIGINAL MANUFACTURERS WHERE THOSE PREREQUISITES HAVE BEEN SATISFIED. YOUR INTEGRITY AND CAPABILITIES AS A MANUFACTURER OF THE DESIGNATED PRODUCTS WERE NOT OTHERWISE QUESTIONED.

B-146010, JUN. 15, 1961

TO LEMPCO PRODUCTS, INC.:

REFERENCE IS MADE TO YOUR LETTER OF MAY 29, 1961, AND ENCLOSURES, PROTESTING AGAINST THE ACTION TAKEN BY THE MILITARY CONSTRUCTION SUPPLY AGENCY, COLUMBUS, OHIO, IN REJECTING THE USE OF YOUR FEDERAL SUPPLY SCHEDULE CONTRACT NO. GS-OOS-30903, WITH THE GENERAL SERVICES ADMINISTRATION. IT IS YOUR CONTENTION, IN SUBSTANCE, THAT IN THE PROCUREMENT OF TRACK PARTS FOR CATERPILLAR AND INTERNATIONAL UNITS, THE ABOVE-NAMED AGENCY SHOULD RESORT TO YOUR REFERRED-TO SUPPLY CONTRACT IN ALL CASES WHERE YOUR LISTED PRICES ARE THE LOWEST QUOTATIONS AVAILABLE.

IN LETTER OF MAY 17, 1961, YOU WERE ADVISED BY THE PROCURING AGENCY THAT ITS RECOMMENDATION TO DISREGARD YOUR CONTRACT IN OBTAINING SUCH PARTS WAS PREDICATED PRIMARILY UPON YOUR FAILURE OR REFUSAL TO SUBMIT THOSE PARTS FOR INSPECTION SO THAT THE ADMINISTRATIVE OFFICE COULD DETERMINE THEIR INTERCHANGEABILITY. IN THAT CONNECTION WE DO NOT CONSIDER SUCH PREREQUISITE UNREASONABLE, PARTICULARLY IN VIEW OF THE FACT THAT SUCH PARTS HAVE BEEN PURCHASED FROM SOURCES OTHER THAN THE ORIGINAL MANUFACTURERS WHERE THOSE PREREQUISITES HAVE BEEN SATISFIED. YOUR INTEGRITY AND CAPABILITIES AS A MANUFACTURER OF THE DESIGNATED PRODUCTS WERE NOT OTHERWISE QUESTIONED, AND IT WAS INDICATED THAT PURCHASE WOULD BE MADE FROM YOU IF YOU MET THIS REQUIREMENT AND WERE LOW IN PRICE.

FURTHERMORE, YOUR ATTENTION IS INVITED TO PARAGRAPH 5-5105 OF THE ARMED SERVICES PROCUREMENT REGULATIONS WHICH STIPULATES IN PERTINENT PART THAT-- - "IN ADDITION TO THE FEDERAL SUPPLY SCHEDULE CONTRACTS DESCRIBED IN ASPR 5-103 AND 5-104 THERE ARE FEDERAL SUPPLY SCHEDULES IN THE FOLLOWING AREAS WHICH ARE COMPLETELY OPTIONAL; GOVERNMENT PURCHASING ACTIVITIES ARE NOT REQUIRED TO ORDER UNDER SUCH CONTRACTS AND THOSE CONTRACTORS ARE NOT REQUIRED TO ACCEPT ORDERS (FOR) CLASS 8 10-60-66 MOTOR VEHICLE PARTS AND ACCESSORIES; GASOLINE AND DIESEL ENGINE PARTS, AND CONSTRUCTION AND ROAD- BUILDING MACHINERY PARTS.'

IN VIEW THEREOF, AND SINCE OTHER INDEPENDENT PARTS MANUFACTURERS HAVE COMPLIED WITH THE TESTING REQUIREMENTS OF THE PROCURING AGENCY, WE FIND NO JUSTIFICATION, ON THE BASIS OF THE PRESENT RECORD BEFORE US, TO QUESTION THE ADMINISTRATIVE ACTION TAKEN IN DISREGARDING YOUR CONTRACT.