B-153493, AUG. 5, 1964

B-153493: Aug 5, 1964

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TO BURTON MANUFACTURING COMPANY: FURTHER REFERENCE IS MADE TO YOUR TELEGRAM OF FEBRUARY 12. NO PROVISION WAS INCLUDED IN THE INVITATION FOR WAIVER OF PREPRODUCTION SAMPLES. TWO BIDS WERE RECEIVED UNDER THIS INVITATION. YOU WERE THE LOW BIDDER WITH A PRICE OF $616.34 PER UNIT. YOU WERE CURRENTLY PERFORMING CONTRACT NO. SUCH ACTION APPEARS TO HAVE BEEN AUTHORIZED AND PROPER UNDER ARMED SERVICES PROCUREMENT REGULATION 2-404.1 (B) (VI) AND AIR FORCE PROCUREMENT INSTRUCTION 2-404.1. BIDS TO FILL THE SAME AIR FORCE REQUIREMENT WERE RESOLICITED ON JANUARY 30. THREE BIDS WERE RECEIVED ON THE READVERTISEMENT. YOU OFFERED A PRICE OF $458.48 IF PREPRODUCTION SAMPLE TESTING WERE WAIVED. LOWER PRICES IF CERTAIN ACCEPTANCE TESTS ALSO WERE WAIVED.

B-153493, AUG. 5, 1964

TO BURTON MANUFACTURING COMPANY:

FURTHER REFERENCE IS MADE TO YOUR TELEGRAM OF FEBRUARY 12, 1964, PROTESTING AGAINST THE AWARD OF A CONTRACT TO ANYONE OTHER THAN YOUR FIRM UNDER INVITATION FOR BIDS NO. 33-657-64-204.

INVITATION NO. 33-657-64-104, ISSUED ON OCTOBER 22, 1963, SOLICITED BIDS FOR THE FURNISHING OF 86 ACCELEROMETERS, TYPE ABU-8/A, AND APPLICABLE DATA, IN ACCORDANCE WITH MILITARY SPECIFICATION A-27261. THE INVITATION REQUIRED THE SUBMISSION OF THREE PREPRODUCTION SAMPLES WITH PERTINENT TEST REPORTS FOR EVALUATION AND APPROVAL PRIOR TO THE DELIVERY OF THE PRODUCTION QUANTITY OF ACCELEROMETERS. NO PROVISION WAS INCLUDED IN THE INVITATION FOR WAIVER OF PREPRODUCTION SAMPLES.

TWO BIDS WERE RECEIVED UNDER THIS INVITATION. YOU WERE THE LOW BIDDER WITH A PRICE OF $616.34 PER UNIT. HOWEVER, YOU WERE CURRENTLY PERFORMING CONTRACT NO. AF-33/657/-10528 UNDER WHICH YOU AGREED TO DELIVER 28 ACCELEROMETERS, IDENTICAL TO THOSE DESCRIBED UNDER INVITATION NO. 33-657- 64-104, AT A UNIT PRICE OF $319.75. IN VIEW OF THE EXTRAORDINARY INCREASE IN YOUR PRICE AND THE AVAILABILITY OF ANOTHER SOURCE, THE CONTRACTING OFFICER REJECTED BOTH BIDS AS UNREASONABLE, CANCELLED THE INVITATION AND READVERTISED FOR THE PROCUREMENT. SUCH ACTION APPEARS TO HAVE BEEN AUTHORIZED AND PROPER UNDER ARMED SERVICES PROCUREMENT REGULATION 2-404.1 (B) (VI) AND AIR FORCE PROCUREMENT INSTRUCTION 2-404.1.

BIDS TO FILL THE SAME AIR FORCE REQUIREMENT WERE RESOLICITED ON JANUARY 30, 1964, UNDER INVITATION FOR BIDS 33-657-64-204. THIS INVITATION ALSO REQUIRED PREPRODUCTION SAMPLE APPROVAL PRIOR TO DELIVERY OF PRODUCTION ITEMS.

THREE BIDS WERE RECEIVED ON THE READVERTISEMENT; ONE AT $486 PER UNIT, ONE AT $581.66, AND YOURS AT $616.34. IN YOUR BID, HOWEVER, YOU OFFERED A PRICE OF $458.48 IF PREPRODUCTION SAMPLE TESTING WERE WAIVED, AND LOWER PRICES IF CERTAIN ACCEPTANCE TESTS ALSO WERE WAIVED.

SINCE YOU HAD OBTAINED APPROVAL ON JANUARY 17, 1964, OF A PREPRODUCTION SAMPLE UNDER CONTRACT NO. AF-33/657/-10528 THE PROCURING OFFICE REQUESTED AIR FORCE TECHNICAL PERSONNEL TO CONCUR IN WAIVER OF THE PREPRODUCTION SAMPLING REQUIREMENT ON THE BID SUBMITTED BY YOU UNDER INVITATION NO. 33- 657-64-204. THE TECHNICAL PERSONNEL REFUSED TO CONCUR IN SUCH REQUEST AND RECOMMENDED THAT YOU REQUIRED TO COMPLY WITH THE PREPRODUCTION PROVISION OF THE INVITATION FOR THE REASON THAT THE REQUIRED RELIABILITY OF THIS EQUIPMENT DEMANDS FREQUENT RE EXAMINATION AND RE-TEST TO ESTABLISH THAT THE PROCESSING AND QUALITY CONTROL PROCEDURES OF THE PROSPECTIVE CONTRACTOR AND THE EQUIPMENT PROCURED MEET AIR FORCE REQUIREMENTS. IT WAS FURTHER REPORTED THAT THE JANUARY 1964, APPROVAL OF YOUR PREPRODUCTION SAMPLES UNDER YOUR PRIOR CONTRACT HAD NOT IN FACT BEEN BASED UPON COMPLETE PREPRODUCTION TESTING, BUT THAT CERTAIN TESTS HAD BEEN WAIVED BECAUSE OF THE URGENCY OF THE REQUIREMENT FOR THE ACCELEROMETERS, AND THAT THERE HAD BEEN NUMEROUS DEFECTS REPORTED IN ARTICLES DELIVERED UNDER YOUR PRIOR CONTRACT.

SINCE THE FOREGOING WOULD APPEAR TO CONSTITUTE ADEQUATE REASON FOR REQUIRING THE PREPRODUCTION SAMPLE TESTING WE MUST CONCLUDE THAT YOUR BID BASED ON WAIVER OF SUCH TESTING WAS PROPERLY EXCLUDED FROM CONSIDERATION, AND YOUR PROTEST IS THEREFORE DENIED.