B-162402, APR. 4, 1968

B-162402, APR. 4, 1968

TO MR. GERALD R. COLEMAN, EXECUTIVE SECRETARY:

REFERENCE IS MADE TO YOUR LETTER OF MARCH 18, 1968, FURTHER CONCERNING A PROCUREMENT BY THE DEFENSE SUPPLY AGENCY (DSA) OF JUNGLE HEADNETS INCLUDED IN CONTRACT DSA-100-67-C-4454 WITH M-AND-B HEADWEAR CO., INC.

IN YOUR LETTER YOU STATE THAT M-AND-B HEADWEAR INFORMED DSA THAT IT PROPOSED TO MANUFACTURE THE HEADNETS IN A FACTORY KNOWN AS CRAWFORDVILLE ENTERPRISES IN CRAWFORDVILLE, GEORGIA, AND DSA INSPECTED THE PLANT AND FOUND THAT IT HAD NECESSARY EQUIPMENT, MACHINERY AND EXPERIENCED HELP TO MEET DSA QUALIFICATIONS. HOWEVER, YOU STATE THAT THE CUTTING OPERATION TOOK PLACE IN A TEMPORARY LOCATION AT 170-A TRINITY AVENUE IN ATLANTA, GEORGIA, WHICH HAD NOT BEEN INSPECTED BY DSA AND THAT THE SEWING AND PACKING TOOK PLACE IN A TEMPORARY LOCATION KNOWN AS "TWILIGHT ASSOCIATES" IN LINCOLNTON, GEORGIA, WHICH ALSO HAD NOT BEEN INSPECTED. YOU STATE THAT YOU SUBSEQUENTLY LEARNED FROM OUR OFFICE THAT DSA HAD RECORDED THAT IT HAD INSPECTED THE TRINITY AVENUE AND TWILIGHT ASSOCIATES PLANTS PRIOR TO AUTHORIZING THEIR USE UNDER THE CONTRACT. YOU QUESTION WHETHER THAT WAS DONE AND SUGGEST THAT OUR OFFICE ASCERTAIN WHETHER THE INSPECTION WAS AFTER THE FACT.

CONTRACT -4454, AS AWARDED TO M-AND-B HEADWEAR ON MAY 23, 1967, PROVIDED FOR MANUFACTURE OF THE HEADNETS IN THE CONTRACTOR'S PLANT. THE CONTRACT PROVIDED THAT NO PART OF THE WORK COULD BE SUBCONTRACTED WITHOUT APPROVAL OF THE CONTRACTING OFFICER. BY LETTER OF JULY 31, 1967, THE CONTRACTOR NOTIFIED THE CONTRACTING OFFICER OF ITS INTENT TO SUBCONTRACT TO CRAWFORDVILLE ENTERPRISES, ATLANTA, GEORGIA, 300,000 HEADNETS AND REQUESTED THE CONTRACTING OFFICER'S APPROVAL. THE COPY OF THE SUBCONTRACT WHICH WAS ATTACHED TO THE LETTER DID NOT STATE THE MANUFACTURING LOCATION.

THE CONTRACTING OFFICER'S REPORT IN RESPONSE TO YOUR ORIGINAL PROTEST ADVISED THAT ON AUGUST 2, 1967, THE DIRECTORATE, DCASR, ATLANTA, GEORGIA, WAS REQUESTED TO SURVEY CRAWFORDVILLE ENTERPRISES; THAT CRAWFORDVILLE ENTERPRISES PROPOSED TO USE ITS FACILITIES AT TRINITY AVENUE AND AT INCOLNTON; AND THAT BOTH FACILITIES WERE SURVEYED AS INDICATED BY A SURVEY REPORT WHICH WAS ATTACHED. THIS INFORMATION WAS COMMUNICATED TO YOU INFORMALLY BY OUR OFFICE.

THE SURVEY REPORT DOES NOT NAME "TWILIGHT ASSOCIATES.' IT REFERS TO THE PROPOSED CONTRACTOR AS "CRAWFORDVILLE ENTERPRISES, LINCOLNTON DIVISION" AND STATES THAT THE LINCOLNTON DIVISION IS A WHOLLY OWNED SUBSIDIARY OF CRAWFORDVILLE ENTERPRISES. THE SURVEY REPORT INCLUDES A DESCRIPTION OF THE LINCOLNTON FACILITIES AND LISTS TYPES AND NUMBER OF EMPLOYEES HIRED BY IT AND THE PRODUCTION EQUIPMENT ON HAND AND TO BE OBTAINED AND CONFIRMATION FROM THE EQUIPMENT COMPANIES THAT THE ADDITIONAL MACHINES WILL BE INSTALLED. THE SURVEY REPORT STATES FURTHER THAT THE CUTTING WILL BE DONE BY CRAWFORDVILLE ENTERPRISES AT 170-A TRINITY AVENUE AND THAT THE LOCATION CONTROLS ALL CUTTING FOR CRAWFORDVILLE ENTERPRISES. THE FINDINGS IN THE REPORT ARE THAT CRAWFORDVILLE ENTERPRISES HAS SATISFACTORY TECHNICAL CAPABILITY, PRODUCTION CAPABILITY, PLANT FACILITIES AND EQUIPMENT, QUALITY ASSURANCE, LABOR RESOURCE AND ABILITY TO MEET THE REQUIRED SCHEDULE. THE SURVEY REPORT INDICATES THAT INFORMATION IN THE REPORT WAS FURNISHED BY THE PROJECT DIRECTOR OF CRAWFORDVILLE ENTERPRISES.

ALTHOUGH THE CONTRACTING OFFICER'S STATEMENT THAT THE FACILITIES WERE "SURVEYED" MAY SUGGEST THAT THERE WAS A PHYSICAL "INSPECTION," IT MAY HAVE BEEN THAT THE INFORMATION IN THE SURVEY REPORT WAS NOT OBTAINED FROM ACTUAL OBSERVATION BUT FROM STATEMENTS MADE BY THE CRAWFORDVILLE ENTERPRISES PROJECT DIRECTOR. IT APPEARS THAT UNDER ARMED SERVICES PROCUREMENT REGULATION K-303.1 AND K-303.2 (C) INFORMATION NECESSARY TO PREPARE A SURVEY REPORT IS NOT REQUIRED TO BE OBTAINED BY ACTUAL PHYSICAL INSPECTION OF THE MANUFACTURING PLANT, BUT CAN BE OBTAINED THROUGH DISCUSSION WITH MANAGEMENT PERSONNEL OF THE PROSPECTIVE SUBCONTRACTOR.

THE SURVEY REPORT SHOWS THAT CRAWFORDVILLE ENTERPRISES WAS APPROVED FOR SUBCONTRACTING BY THE CHAIRMAN OF THE SURVEY BOARD ON AUGUST 11, 1967. THEREAFTER, ON AUGUST 24, 1967, THE CONTRACTING OFFICER ISSUED A CONTRACT MODIFICATION TO M-AND-B HEADWEAR AUTHORIZING PRODUCTION OF 300,000 HEADNETS TO:

"CRAWFORDVILLE ENTERPRISES

170-A TRINITY AVENUE

ATLANTA, GEORGIA - CUTTING OPERATIONS

"CRAWFORDVILLE ENTERPRISES

LINCOLNTON, GEORGIA - SEWING OPERATIONS"

IN THE CIRCUMSTANCES, THERE DOES NOT APPEAR TO HAVE BEEN ANY VIOLATION OF THE PROCUREMENT REGULATIONS PERTAINING TO SURVEYING AND, THEREFORE, WE DO NOT BELIEVE THAT OUR OFFICE HAS ANY FURTHER RESPONSIBILITY IN THE MATTER.