B-154324, AUG. 28, 1964

B-154324: Aug 28, 1964

Additional Materials:

Contact:

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

 

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

THIS INVITATION WAS ISSUED BY THE DIRECTORATE OF PROCUREMENT AND PRODUCTION. WE ARE ADVISED THAT TWO MAJOR COMPONENTS OF THE PILOT AND STATIC SYSTEMS TESTERS ARE A SPEED INDICATOR AND AND ALTIMETER. THE LOW BID WAS SUBMITTED BY COMPUDYNE CORPORATION. YOU ALSO SUBMITTED AN ALTERNATE BID QUOTING A PRICE OF $341.47 PER UNIT PROVIDED THAT THE ALTIMETER AND SPEED INDICATOR COMPONENTS OF THE TESTERS WERE GOVERNMENT-FURNISHED EQUIPMENT. IT WAS FOUND THAT IF THE ALTIMETERS AND SPEED INDICATOR COMPONENTS OF THE TESTERS WERE GOVERNMENT-FURNISHED EQUIPMENT. THE COST OF THE TESTERS TO THE GOVERNMENT WOULD BE SOME 57 PERCENT LESS THAN IF THESE COMPONENTS WERE FURNISHED BY THE CONTRACTOR. IN THESE CIRCUMSTANCES THERE IS NO QUESTION THAT THERE WILL BE A SUBSTANTIAL SAVING TO THE GOVERNMENT IF THE SPEED INDICATOR AND ALTIMETER COMPONENTS OF THE PILOT AND STATIC SYSTEM TESTERS ARE GOVERNMENT-FURNISHED EQUIPMENT AND THE RECORD INDICATES THAT THESE COMPONENTS ARE PRESENTLY AVAILABLE FROM THE AIR FORCE'S INVENTORY.

B-154324, AUG. 28, 1964

TO BURTON MANUFACTURING COMPANY:

WE REFER TO YOUR LETTER DATED MAY. 28, 1964, PROTESTING THE AWARD OF A CONTRACT TO ANY OTHER BIDDER UNDER INVITATION FOR BIDS NO. 41-608 64-579.

THIS INVITATION WAS ISSUED BY THE DIRECTORATE OF PROCUREMENT AND PRODUCTION, SAAMA, KELLY AIR FORCE BASE, TEXAS, ON MARCH 20, 1964, FOR THE PROCUREMENT OF 350 UNITS OF PILOT AND STATIC SYSTEMS TESTERS IN ACCORDANCE WITH THE SPECIFICATIONS LISTED IN THE INVITATION. WE ARE ADVISED THAT TWO MAJOR COMPONENTS OF THE PILOT AND STATIC SYSTEMS TESTERS ARE A SPEED INDICATOR AND AND ALTIMETER.

THE LOW BID WAS SUBMITTED BY COMPUDYNE CORPORATION, HATBORO, PENNSYLVANIA, QUOTING A PRICE OF $796.12 PER UNIT. YOU SUBMITTED THE SECOND LOWEST BID QUOTING A PRICE OF $954.28 PER UNIT USING NEW INSTRUMENTS AS COMPONENTS AND A PRICE OF $811.47 PER UNIT USING GOVERNMENT SURPLUS INSTRUMENTS AS COMPONENTS. YOU ALSO SUBMITTED AN ALTERNATE BID QUOTING A PRICE OF $341.47 PER UNIT PROVIDED THAT THE ALTIMETER AND SPEED INDICATOR COMPONENTS OF THE TESTERS WERE GOVERNMENT-FURNISHED EQUIPMENT.

AFTER BID OPENING THE AIR FORCE FOUND THAT THE SPEED INDICATORS AND ALTIMETERS COULD BE SUPPLIED BY THE GOVERNMENT FROM THE AIR FORCE'S INVENTORY OF THESE ITEMS. IT WAS FOUND THAT IF THE ALTIMETERS AND SPEED INDICATOR COMPONENTS OF THE TESTERS WERE GOVERNMENT-FURNISHED EQUIPMENT, THE COST OF THE TESTERS TO THE GOVERNMENT WOULD BE SOME 57 PERCENT LESS THAN IF THESE COMPONENTS WERE FURNISHED BY THE CONTRACTOR. PURSUANT TO THESE FINDINGS THE AIR FORCE DETERMINED THAT INVITATION FOR BIDS NO. 41- 608-64-579 SHOULD BE CANCELLED AND THE PROCUREMENT READVERTISED.

IN THESE CIRCUMSTANCES THERE IS NO QUESTION THAT THERE WILL BE A SUBSTANTIAL SAVING TO THE GOVERNMENT IF THE SPEED INDICATOR AND ALTIMETER COMPONENTS OF THE PILOT AND STATIC SYSTEM TESTERS ARE GOVERNMENT-FURNISHED EQUIPMENT AND THE RECORD INDICATES THAT THESE COMPONENTS ARE PRESENTLY AVAILABLE FROM THE AIR FORCE'S INVENTORY. A SUBSTANTIAL PROSPECTIVE SAVING TO THE GOVERNMENT IS SUFFICIENT JUSTIFICATION FOR THE CANCELLATION OF AN INVITATION AFTER BID OPENING. SEE B-143263, DECEMBER 22, 1960, AND B-151910, AUGUST 20, 1963. IN VIEW OF THE FACT THAT INVITATION FOR BIDS NO. 41-608-64-579 HAS NOW BEEN CANCELLED, WE FIND IT UNNECESSARY TO CONSIDER FURTHER YOUR PROTEST REGARDING THE AWARD OF A CONTRACT UNDER INVITATION FOR BIDS NO. 41-608-64-579.