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B-156008, MAR. 31, 1965

B-156008 Mar 31, 1965
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TO THE HONORABLE SECRETARY OF THE NAVY: REFERENCE IS MADE TO LETTER R1.1 OF FEBRUARY 18. THE ENCLOSURES ACCOMPANYING THE REPORT WHICH WERE REQUESTED TO BE RETURNED AND A COPY OF OUR LETTER OF TODAY TO THE PROTESTANT ARE ENCLOSED. THE RECORD SHOWS THAT SIX MONTHS ELAPSED BETWEEN THE TIME THE PROCUREMENT WAS LET TO COMPETITION AND A CONTRACT WAS NEGOTIATED ON THE BASIS OF AN EMERGENCY. THE RECORD ALSO SHOWS THAT ABOUT TWO MONTHS ELAPSED AFTER THE SMALL BUSINESS ADMINISTRATION ISSUED A CERTIFICATION THAT METAL IMPROVEMENT COMPANY WAS COMPETENT AS TO CAPACITY AND CREDIT TO PERFORM WORK AS CALLED FOR BY THE INVITATION FOR BIDS. IT IS INDICATED THAT DURING THIS 2-MONTH PERIOD ACTION WAS BEING TAKEN TO APPEAL FROM THE CERTIFICATION OF COMPETENCY TO THE OFFICE OF NAVAL MATERIAL IN ACCORDANCE WITH PARAGRAPH 1-705.4 (E) OF THE ARMED SERVICES PROCUREMENT REGULATION.

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B-156008, MAR. 31, 1965

TO THE HONORABLE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO LETTER R1.1 OF FEBRUARY 18, 1965, FROM THE ASSISTANT CHIEF FOR PURCHASING, BUREAU OF SUPPLIES AND ACCOUNTS, REPORTING ON THE PROTEST OF METAL IMPROVEMENT COMPANY AGAINST THE CANCELLATION OF INVITATION FOR BIDS IFB600-1148-64 AND NEGOTIATION WITH A HIGH BIDDER.

THE ENCLOSURES ACCOMPANYING THE REPORT WHICH WERE REQUESTED TO BE RETURNED AND A COPY OF OUR LETTER OF TODAY TO THE PROTESTANT ARE ENCLOSED.

OUR REVIEW OF THIS PROCUREMENT DISCLOSED DEFECTS IN THE ADMINISTRATIVE PROCEDURES FOLLOWED IN AWARDING THE CONTRACT. THE RECORD SHOWS THAT SIX MONTHS ELAPSED BETWEEN THE TIME THE PROCUREMENT WAS LET TO COMPETITION AND A CONTRACT WAS NEGOTIATED ON THE BASIS OF AN EMERGENCY. THE RECORD ALSO SHOWS THAT ABOUT TWO MONTHS ELAPSED AFTER THE SMALL BUSINESS ADMINISTRATION ISSUED A CERTIFICATION THAT METAL IMPROVEMENT COMPANY WAS COMPETENT AS TO CAPACITY AND CREDIT TO PERFORM WORK AS CALLED FOR BY THE INVITATION FOR BIDS. IT IS INDICATED THAT DURING THIS 2-MONTH PERIOD ACTION WAS BEING TAKEN TO APPEAL FROM THE CERTIFICATION OF COMPETENCY TO THE OFFICE OF NAVAL MATERIAL IN ACCORDANCE WITH PARAGRAPH 1-705.4 (E) OF THE ARMED SERVICES PROCUREMENT REGULATION. HOWEVER, NO PRESENTATION WAS EVER MADE TO HIGHER AUTHORITY DESPITE THE REPORTED INTENTION TO DO SO AND A REQUIREMENT IN THE REGULATION THAT IF SUCH ACTION BE TAKEN THAT IT BE DONE ON AN "EXPEDITED BASIS.' INASMUCH AS IT APPEARS THAT THE EMERGENCY WAS ADMINISTRATIVELY CREATED BY THE FAILURE TO HANDLE THE CASE IN A PROMPT MANNER AND THAT THIS RESULTED IN CIRCUMVENTING THE STATUTORY PROCEDURE APPLICABLE TO CERTIFICATES OF COMPETENCY (15 U.S.C. 637 (B) (7) (, WE BELIEVE APPROPRIATE ADMINISTRATIVE STEPS SHOULD BE TAKEN TO PRECLUDE A RECURRENCE OF SUCH A SITUATION.

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