B-161311, JUN. 23, 1967

B-161311: Jun 23, 1967

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TO CHRIS MARK AGENCY: REFERENCE IS MADE TO YOUR LETTER OF APRIL 17. THIS PROCUREMENT WAS INSTITUTED IN RESPONSE TO A REQUISITION FROM THE U.S. THESE SERVICES ARE REQUIRED IN CONNECTION WITH THE INTERAGENCY DATA EXCHANGE PROGRAM TEST REPORTS. THE VOLUME OF WORK WHICH WILL BE ORDERED WILL ORIGINATE WITH NAVY. THERE IS ONLY ONE (1) SERVICE BUREAU IN THE UNITED STATES THAT POSSESSES A JONKER J400 AUTOMATIC DRILL. THAT COMPANY IS PRESENTLY PERFORMING THIS WORK FOR THE UNITED STATES AIR FORCE ON A PREVIOUSLY AWARDED CONTRACT WHICH EXPIRES THIS YEAR. "2. IF PROSPECTIVE BIDDERS WERE TO CONSIDER BIDDING ON THIS CONTRACT. THE IFB WAS ISSUED ON 30 MARCH 1967. THE BIDS WILL BE OPENED 2 MAY 1967. THE ENTIRE TIME SPAN FROM OFFER TO BID TO CONTRACT COMMENCEMENT IS APPROXIMATELY 60 DAYS.

B-161311, JUN. 23, 1967

TO CHRIS MARK AGENCY:

REFERENCE IS MADE TO YOUR LETTER OF APRIL 17, 1967, AND ENCLOSURE, PROTESTING AGAINST CERTAIN ALLEGEDLY RESTRICTIVE PROVISIONS IN IFB NO. N00123-67-B-2171, A 100 PERCENT SMALL BUSINESS SET-ASIDE, ISSUED MARCH 30, 1967, BY THE U.S. NAVY PURCHASING OFFICE, LOS ANGELES, CALIFORNIA.

THIS PROCUREMENT WAS INSTITUTED IN RESPONSE TO A REQUISITION FROM THE U.S. NAVAL ORDNANCE LABORATORY, CORONA, CALIFORNIA. IT REQUIRES AN INDEFINITE QUANTITY OF SERVICES INVOLVING MICROFILMING, DUPLICATION, AND OTHER WORK RELATING TO INDEX AND SUMMARY CARDS. THESE SERVICES ARE REQUIRED IN CONNECTION WITH THE INTERAGENCY DATA EXCHANGE PROGRAM TEST REPORTS. THE VOLUME OF WORK WHICH WILL BE ORDERED WILL ORIGINATE WITH NAVY, ARMY, AND AIR FORCE ACTIVITIES. THE SPECIFICATIONS REQUIRE THE USE OF JONKER "TERMATREX" CARDS, AND STIPULATES THAT THE DRILLING OF VISUAL COINCIDENCE CARDS BE PERFORMED BY A JONKER J400 AUTOMATIC DRILL OR EQUIVALENT.

YOU EXPLAIN YOUR PROTEST AS FOLLOWS:

"1. THERE IS ONLY ONE (1) SERVICE BUREAU IN THE UNITED STATES THAT POSSESSES A JONKER J400 AUTOMATIC DRILL. THAT COMPANY IS PRESENTLY PERFORMING THIS WORK FOR THE UNITED STATES AIR FORCE ON A PREVIOUSLY AWARDED CONTRACT WHICH EXPIRES THIS YEAR.

"2. IF PROSPECTIVE BIDDERS WERE TO CONSIDER BIDDING ON THIS CONTRACT, THEY WOULD NOT BE ABLE TO ACQUIRE THE J400 EQUIPMENT IN LESS THAN A MINIMUM OF 90 TO POSSIBLY 180 DAYS. THIS DELIVERY TIME, AS WELL AS EQUIPMENT LOCATION, HAS BEEN VERIFIED BY THE VICE PRESIDENT OF JONKER CORPORATION, MR. GLENN R. JOHNSON.

"3. THE IFB WAS ISSUED ON 30 MARCH 1967, THE BIDS WILL BE OPENED 2 MAY 1967, 10 A.M. PACIFIC STANDARD TIME, THE SERVICES CALLED FOR WITHIN THE CONTRACT COMMENCE ON 1 JUNE 1967. THE ENTIRE TIME SPAN FROM OFFER TO BID TO CONTRACT COMMENCEMENT IS APPROXIMATELY 60 DAYS. THE ONLY PROSPECTIVE BIDDER WHO COULD MEET THIS CRITICAL TIME REQUIREMENT WOULD BE THE CONTRACTOR WHO IS PERFORMING THE TASK UNDER THE PREVIOUS U.S. AIR FORCE CONTRACT.

"4. IT HAS TO BE CONCLUDED, THEREFORE, THAT THIS IS NOT A COMPETITIVE BID OFFER AND CONSTITUTES PREFERENTIAL TREATMENT OF ONE PROSPECTIVE BIDDER OVER ALL OTHERS. IFB NO. N00123-67-B-2171 IS IN FACT, FATALLY DEFICIENT IN MAKE UP AND DOES NOT CONFORM TO PROPER AND INTEGRAL ARMED SERVICES CONTRACTING METHODOLOGY.'

THE PROCURING ACTIVITY REPORTS TO US THAT THE FACTS ALLEGED IN YOUR PROTEST WERE INVESTIGATED AND IT WAS DETERMINED THAT IN FACT, THERE WAS ONLY ONE SERVICE-BUREAU KNOWN WHICH POSSESSED A JONKER'S DRILL, AND IT WAS FURTHER DETERMINED THAT IT WOULD TAKE APPROXIMATELY 90 DAYS FOR ANY CONTRACTOR TO OBTAIN SUCH EQUIPMENT FOR USE UNDER THIS CONTRACT. IT WAS SIMILARLY DETERMINED THAT THERE IS NO "EQUIVALENT" PIECE OF EQUIPMENT. ACCORDINGLY, THE IFB WAS CANCELLED.

THE REQUIRING ACTIVITY (NAVAL ORDNANCE LABORATORY, CORONA) INSISTS THAT THE SPECIFIED EQUIPMENT IS NECESSARY FOR PERFORMANCE OF THE REQUIRED SERVICES, DUE TO THE FACT THAT THE ACTIVITY HAS ALSO STATED THAT ALL OF THE WORK UNDER THIS CONTRACT IS RELATED AND CANNOT BE SEVERED BY THE LETTING OF SEPARATE CONTRACTS.

WE ARE ADVISED THAT IN THESE CIRCUMSTANCES A NEW IFB IS CURRENTLY BEING PREPARED, WHICH WILL PROVIDE FOR COMMENCEMENT OF WORK NOT LATER THAN 90 DAYS AFTER DATE OF AWARD, AND WOULD BE FOR A SUFFICIENT PERIOD OF TIME TO JUSTIFY THE ACQUISITION OF THE NECESSARY EQUIPMENT FOR PERFORMANCE OF THE CONTRACT.

IN VIEW OF THIS ADMINISTRATIVE ACTION, IT APPEARS THAT NO FURTHER ACTION BY OUR OFFICE IN THE MATTER IS REQUIRED AT THIS TIME, AND WE ARE THEREFORE CLOSING OUR FILE.