B-160327, DEC. 14, 1966

B-160327: Dec 14, 1966

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INC.: REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 25. BELOW THE DESCRIPTION OF THE ARTICLE IN THE REQUEST FOR PROPOSALS THERE WAS A NOTE STATING. "THIS IS A SOURCE CONTROLLED ITEM AND THE ONLY APPROVED SOURCE IS C/P CORPORATION.'. TWO PROPOSALS FOR THIS PROCUREMENT WERE RECEIVED AND THEY WERE OPENED ON OCTOBER 19. THE PROPOSAL FROM YOUR COMPANY WAS LOW. THE OTHER PROPOSAL WAS FROM THE C/P CORPORATION. THE ARTICLES PREVIOUSLY FURNISHED BY YOUR COMPANY WERE FOUND TO BE TOTALLY UNACCEPTABLE IN 1964. IT WAS DECIDED THEN THAT A SOURCE CONTROLLED DRAWING WOULD BE USED FOR FUTURE PROCUREMENTS OF THE ARTICLE UNTIL A NEW DRAWING ADEQUATE FOR COMPETITIVE PROCUREMENT COULD BE PREPARED. THE BUREAU OF SHIPS DRAWING CITED IN THE REQUEST FOR PROPOSALS IS THE SOURCE DRAWING.

B-160327, DEC. 14, 1966

TO HENRY PRODUCTS CO., INC.:

REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 25, 1966, PROTESTING THE RESTRICTION OF THE PROCUREMENT COVERED BY DEFENSE SUPPLY AGENCY REQUEST FOR PROPOSALS DSA-9-00-67-R-0894 TO THE C/P CORPORATION.

THE REQUEST FOR PROPOSALS, ISSUED SEPTEMBER 30, 1966, SOLICITED QUOTATIONS FOR INCREMENTAL QUANTITIES OF A MOUNT ASSEMBLY ANTENNA BASE TO BE MANUFACTURED IN ACCORDANCE WITH BUREAU OF SHIPS DRAWING 1940978. BELOW THE DESCRIPTION OF THE ARTICLE IN THE REQUEST FOR PROPOSALS THERE WAS A NOTE STATING,"THIS IS A SOURCE CONTROLLED ITEM AND THE ONLY APPROVED SOURCE IS C/P CORPORATION.'

TWO PROPOSALS FOR THIS PROCUREMENT WERE RECEIVED AND THEY WERE OPENED ON OCTOBER 19, 1966. THE PROPOSAL FROM YOUR COMPANY WAS LOW. THE OTHER PROPOSAL WAS FROM THE C/P CORPORATION. THE CONTRACTING AGENCY PROPOSES TO AWARD THE CONTRACT TO THE C/P CORPORATION.

THE ARTICLES PREVIOUSLY FURNISHED BY YOUR COMPANY WERE FOUND TO BE TOTALLY UNACCEPTABLE IN 1964. AS A RESULT, IT WAS DECIDED THEN THAT A SOURCE CONTROLLED DRAWING WOULD BE USED FOR FUTURE PROCUREMENTS OF THE ARTICLE UNTIL A NEW DRAWING ADEQUATE FOR COMPETITIVE PROCUREMENT COULD BE PREPARED. THE BUREAU OF SHIPS DRAWING CITED IN THE REQUEST FOR PROPOSALS IS THE SOURCE DRAWING. THAT DRAWING STATES THAT COLUMBIA PRODUCTS COMPANY IS THE APPROVED SOURCE FOR THE ARTICLE. COLUMBIA PRODUCTS COMPANY IS NOW C/P CORPORATION. THE DRAWING STATES FURTHER:

"CONTROL NOTE FOR PROCUREMENT: THE ITEM DEPICTED ON THIS DRAWING

REQUIRES SPECIAL PRIOR ACCEPTANCE TESTS.

SUPPLIERS WISHING TO HAVE THEIR ITEMS TESTED AND LISTED ON THIS DRAWING SHALL ADDRESS SUCH REQUESTS TO CHIEF, BUREAU OF SHIPS, CODE 529V, WASHINGTON 25, D.C.'

YOUR COMPANY DID NOT COMPLY WITH THE LATTER REQUIREMENT. THEREFORE, THE CONTRACTING OFFICE PROPOSES TO REJECT YOUR COMPANY'S QUOTATION. MOREOVER, THE CONTRACTING OFFICER HAS MADE A FORMAL DETERMINATION THAT THE CONTRACT BE NEGOTIATED ON A SOLE-SOURCE BASIS UNDER THE AUTHORITY OF 10 U.S.C. 2304 (A) (10). THE BASIS FOR THE DETERMINATION IS THAT THE PROCUREMENT IS FOR REPLACEMENT PARTS AND THE DATA AVAILABLE IS NOT ADEQUATE TO ASSURE THAT ANY PART OTHER THAN THE SOURCE PART WILL PERFORM THE SAME FUNCTION IN THE EQUIPMENT AS THE PART TO BE REPLACED.

DETERMINATIONS SUPPORTING NEGOTIATION UNDER 10 U.S.C. 2304 (A) (10) ARE MADE FINAL BY 10 U.S.C. 2310 (B). ACCORDINGLY, WE MUST CONCLUDE THAT THE INSTANT PROCUREMENT IS NOT SUBJECT TO LEGAL QUESTION BY OUR OFFICE. HOWEVER, WE HAVE BEEN ADVISED THAT A SPECIFICATION DESIGNED FOR COMPETITIVE PROCUREMENT IS BEING PREPARED AND MAY BE READY FOR USE IN APRIL 1967. IN THE MEANTIME, YOUR COMPANY MIGHT WISH TO GIVE CONSIDERATION TO HAVING ITS PRODUCT TESTED AND APPROVED AS PROVIDED IN DRAWING 1940978 SO THAT IT MAY QUALIFY IF THERE ARE ANY FURTHER PROCUREMENTS BEFORE REVISION OF THE SPECIFICATION ACTUALLY IS COMPLETED.