B-161432, AUG. 10, 1967

B-161432: Aug 10, 1967

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NAVY REPORT INDICATES THAT COLLINS ANTENNA WAS SUPERIOR AND THAT ON BASIS OF FEASIBILITY STUDY UNSOLICITED PROPOSAL OF EGGUD WAS EVALUATED BY PRIME CONTRACTOR AND FOUND TO INVOLVE HIGHER DEGREE OF RISK. ON BASIS OF RECORD IT CANNOT BE SAID THAT EGGUD PRODUCT IS SUPERIOR OR THAT IT WAS ARBITRARILY REJECTED. VICE PRESIDENT: THIS IS IN REPLY TO YOUR LETTER OF APRIL 4. BOEING-VERTOL IS THE PRIME CONTRACTOR FOR THE CH-46A HELICOPTER AND IT SELECTED COLLINS RADIO COMPANY AS THE ANTENNA SUBCONTRACTOR. AT WHICH TIME HE WAS ADVISED THAT THE NAVY WAS DISSATISFIED WITH THE PRIME HANDLING OF THE ANTENNA PROGRAM AND THAT THE NAVY INTENDED TO FLIGHT -TEST THREE ANTENNAS (COLLINS. THESE TESTS WERE HELD AND.

B-161432, AUG. 10, 1967

BIDDERS - RESPONSIBILITY - PERFORMANCE CAPABILITY DECISION RE EFFORTS OF EGGUD ELECTRONICS TO QUALIFY TO FURNISHE HF ANTENNA TO PRIME CONTRACTOR FOR USE IN CH-46A AND 56A HELICOPTER FOR NAVY. COLLINS RADIO., SUCCESSFUL SUBCONTRACTOR. NAVY REPORT INDICATES THAT COLLINS ANTENNA WAS SUPERIOR AND THAT ON BASIS OF FEASIBILITY STUDY UNSOLICITED PROPOSAL OF EGGUD WAS EVALUATED BY PRIME CONTRACTOR AND FOUND TO INVOLVE HIGHER DEGREE OF RISK. ALSO TEST BY NAVAL AIR TEST CENTER DID NOT REVEAL ANY EVIDENCE WHICH NEGATED CONTRACTOR'S SELECTION OF COLLINS. THEREFORE, ON BASIS OF RECORD IT CANNOT BE SAID THAT EGGUD PRODUCT IS SUPERIOR OR THAT IT WAS ARBITRARILY REJECTED.

TO MR. LOUIS DOLINKO, VICE PRESIDENT:

THIS IS IN REPLY TO YOUR LETTER OF APRIL 4, 1967, WITH ENCLOSURES, PERTAINING TO THE EFFORTS BY EGGUD ELECTRONICS, INCORPORATED, TO QUALIFY FOR THE HIGH FREQUENCY ANTENNA PROGRAM WITH THE DEPARTMENT OF THE NAVY.

EGGUD, THROUGH ITS PRESIDENT, MR. JOHN L. HEINS, PROTESTS THE SELECTION OF ANOTHER SOURCE TO FURNISH THE HIGH FREQUENCY ANTENNA FOR THE CH-46A AND CH-53A HELICOPTERS. BOEING-VERTOL IS THE PRIME CONTRACTOR FOR THE CH-46A HELICOPTER AND IT SELECTED COLLINS RADIO COMPANY AS THE ANTENNA SUBCONTRACTOR. IN CONNECTION WITH THIS AWARD, MR. HEINS REPORTS THAT HE ATTENDED A MEETING ON AUGUST 4, 1964, CALLED BY THE DEPARTMENT OF THE NAVY, AT WHICH TIME HE WAS ADVISED THAT THE NAVY WAS DISSATISFIED WITH THE PRIME HANDLING OF THE ANTENNA PROGRAM AND THAT THE NAVY INTENDED TO FLIGHT -TEST THREE ANTENNAS (COLLINS, CHU AND EGGUD) AND MAKE ITS RECOMMENDATIONS TO THE PRIME CONTRACTOR AS TO THE BEST ANTENNA. THESE TESTS WERE HELD AND, ACCORDING TO MR. HEINS, CLEARLY ESTABLISHED THE SUPERIORITY OF THE EGGUD ANTENNA IN THE 5.295 MCS RANGE. HE STATES THAT EGGUD WAS DENIED THE OPPORTUNITY OF A FAIR FLIGHT TEST IN THE 2-4 MCS RANGE DUE TO LACK OF PROPERLY OPERATING GOVERNMENT FURNISHED EQUIPMENT (A COLLINS COUPLER), BUT THAT PROOF OF EGGUD'S SUPERIORITY IN THIS RANGE WAS AVAILABLE THROUGH EXTRA-POLATION FROM THE 5.295 MCS RANGE TEST RESULTS.

ON THE MATTER OF COSTS, MR. HEINS CONTENDS THAT THE EGGUD BID HAS BEEN MISQUOTED BY NAVY TO INCLUDE DEVELOPMENT COSTS; THAT EGGUD ONLY QUOTED FOR PRODUCTION OF 100 UNITS, FOR WHICH IT QUOTED A PRICE OF $146,064, WHILE COLLINS RADIO QUOTED A PRICE OF $201,350 FOR THE 100 UNITS.

FINALLY, CONCERNING THE CH-53A, MR. HEINS STATES THAT THE PRIME CONTRACTOR, SIKORSKY, MERELY FOLLOWED THE PATTERN ESTABLISHED IN THE CH- 46A PROCUREMENT AND SELECTED THE COLLINS ANTENNA.

MR. HEINS AND YOU, OF COURSE, ARE FULLY AWARE OF THE DEPARTMENT OF THE NAVY'S POSITION REGARDING THESE ALLEGATIONS. BRIEFLY, THE NAVY STATES THAT IT CONDUCTED ONLY A FEASIBILITY STUDY OF A TAIL INSTALLATION OF THE HF ANTENNA ON THE CH-46A AND DID NOT CONDUCT A SOURCE SELECTION, SINCE THE SOURCE SELECTION WAS A PRIME CONTRACTOR RESPONSIBILITY; BUT THAT, IN ANY EVENT, THE NAVY CONCLUDED THAT THE COLLINS ANTENNA WAS TECHNICALLY SUPERIOR.

AS TO COSTS, THE NAVY REPORTS THAT YOUR ORIGINAL PROPOSAL DATED MARCH 31, 1964, QUOTED A COST OF $384,201 FOR DEVELOPMENT AND PRODUCTION OF 100 UNITS, BROKEN OUT AS $41,400 FOR THE MODEL TEST PROGRAM, $77,801 FOR THE PROTOTYPE PROGRAM, $250,000 WAS FOR PRODUCTION OF 100 UNITS, AND $15,000 FOR TOOLING, WHEREAS THE COLLINS' PROPOSAL, DATED FEBRUARY 15, 1964, GAVE A COST OF $201,350 FOR THE PRODUCTION OF THE 100 UNITS. IT FURTHER REPORTS THAT YOUR PRICE OF $146,064 WAS SUBMITTED ON SEPTEMBER 7, 1965, AS AN UNSOLICITED PROPOSAL, AND THAT THE PRIME CONTRACTOR CONSIDERED THAT THIS LATER PROPOSAL OFFERED NO BASIC TECHNICAL PERFORMANCE IMPROVEMENT BUT DID REFLECT A HIGHER DEGREE OF TECHNICAL RISK THAN THE SELECTED COLLINS' ANTENNA, A RISK WHICH THE PRIME CONTRACTOR ELECTED NOT TO ASSUME.

IN THE CASE OF THE SIKORSKY PROCUREMENT, THE NAVY STATES THAT EGGUD'S PROPOSAL, RECEIVED OCTOBER 6, 1965, WAS ABOUT 20 PERCENT HIGHER IN PRICE THAN COLLINS-, AND THERE WAS NO CLEAR EVIDENCE AVAILABLE TO SIKORSKY TO INDICATE THAT THE EGGUD ANTENNA SYSTEM WAS SUPERIOR TO THE COLLINS SYSTEM.

THE RECORD BEFORE US SHOWS THAT ON JULY 30, 1965, BOEING-VERTOL WROTE TO THE DEPARTMENT OF THE NAVY, BUREAU OF WEAPONS, WASHINGTON, D.C., AS FOLLOWS:

"A TECHNICAL REVIEW OF THE PROPOSALS WAS PERFORMED RESULTING IN THE CONCLUSION THAT ALTHOUGH ALL PROPOSALS WERE ACCEPTABLE COLLINS' PROPOSAL OFFERED THE GREATEST PROBABILITY OF ACHIEVING SATISFACTORY RESULTS ON A TIMELY BASIS. THE REVIEW INCLUDED ASSESSMENT OF THE FOLLOWING FACTORS:

C- USE OF STANDARD COUPLER APPROACH (COLLINS) MINIMIZING DEVELOPMENT TIME REQUIREMENTS AND TECHNICAL RISKS.'

THE PRIME CONTRACTOR CONCLUDED BY STATING THAT THE NAVAL AIR TEST CENTER (NATC) TEST AT PATUXENT RIVER, MARYLAND, DID NOT REVEAL ANY EVIDENCE WHICH NEGATED THE CONTRACTOR'S ORIGINAL SELECTION OF COLLINS.

WE NOTE THAT THE BOEING-VERTOL REQUEST FOR PROPOSAL CALLED FOR A HF ANTENNA WITH A FREQUENCY RANGE 2 TO 30 MC, AND REQUESTED BID PRICES FOR VARIOUS PRODUCTION QUANTITIES, TOOLING, A PRICE ON A SCALE MODEL ANTENNA TEST PHASE AND A PRICE FOR FABRICATION AND TESTING OF ONE PROTOTYPE ANTENNA.

A COMPARISON OF THE RADIATION PATTERNS SHOWN BY THE COLLINS AND EGGUD ANTENNAS ON THE NATC TEST RESULTS INDICATES A SUPERIORITY OF THE COLLINS ANTENNA IN THE 2-4 MC RANGE; EGGUD SUPERIORITY AT FREQUENCY 5.295; AT 12.045 MC THE TWO ANTENNAS WERE ABOUT EQUAL; AND AT 24.430 MC THE COLLINS ANTENNA WAS SUPERIOR.

ON THE BASIS OF THIS RECORD WE CANNOT SAY THAT THE EGGUD HIGH FREQUENCY ANTENNA IS THE SUPERIOR ANTENNA. POSSIBLY THE EGGUD ANTENNA MAY HAVE SOME ADVANTAGES OVER THE COLLINS ANTENNA. THE PRIME CONTRACTOR WAS CONCERNED, HOWEVER, ABOUT THE TECHNICAL RISKS WHICH ITS EVALUATION INDICATED WERE TO BE FOUND IN THE EGGUD PRODUCT. ALSO, THE NATC TEST RESULTS TENDED TO CONFIRM THE PRIME CONTRACTOR'S CONCLUSIONS. WITH REGARD TO THE UH-34D HELICOPTER (THE SIKORSKY PROCUREMENT), IT IS NOT CLEAR FROM THE RECORD WHY EGGUD QUOTED A HIGHER PRICE ON OCTOBER 6, 1965, TO SIKORSKY THAN IT QUOTED, IN ITS REVISED PROPOSAL TO BOEING-VERTOL ON SEPTEMBER 7, 1965. THAT AS IT MAY, THE EVIDENCE DOES NOT INDICATE THAT THE EGGUD PRODUCT WAS ARBITRARILY REJECTED, OR THAT THE COLLINS PRODUCT WAS IMPROPERLY SELECTED FOR THESE CONTRACT AWARDS.

ACCORDINGLY, WE DO NOT BELIEVE THAT FURTHER ACTION IS WARRANTED IN THE MATTER.