B-164481, SEP. 30, 1968

B-164481: Sep 30, 1968

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INC.: REFERENCE IS MADE TO YOUR LETTERS OF MAY 8 AND 28. REQUEST FOR PROPOSALS F41608-68-R-D482 ON THE GROUNDS THAT YOUR FIRM WAS NOT REQUESTED TO PROVIDE A PRICE FOR RECONDITIONED SUPPLIES AFTER RECEIPT OF A QUOTATION FROM AERO ON THAT BASIS. THE REASON THE CONTRACTING OFFICER DID NOT SOLICIT YOUR COMPANY FOR A PRICE FOR RECONDITIONED PARTS WHEN HE DETERMINED THAT THE RECONDITIONED PARTS OFFERED BY AERO WERE ACCEPTABLE FOR USE WAS THAT HE DETERMINED THAT IT WOULD SERVE NO USEFUL PURPOSE SINCE THE PRICES QUOTED BY YOUR COMPANY FOR NEW PARTS WERE CONSIDERABLY HIGHER THAN AERO'S PRICES FOR RECONDITIONED PARTS. THE AIR FORCE HAS REVIEWED THE PROCUREMENT AND HAS DECIDED THAT THE CONTRACTING OFFICER SHOULD HAVE AMENDED THE REQUEST FOR PROPOSALS AND PROVIDED YOUR COMPANY WITH AN OPPORTUNITY TO SUBMIT A REVISED PROPOSAL FOR RECONDITIONED PARTS.

B-164481, SEP. 30, 1968

TO SIMMONDS PRECISION PRODUCTS, INC.:

REFERENCE IS MADE TO YOUR LETTERS OF MAY 8 AND 28, 1968, PROTESTING THE AWARD OF A CONTRACT TO AERO PRECISION INDUSTRIES, INC., UNDER DEPARTMENT OF THE AIR FORCE, SAN ANTONIO AIR MATERIEL AREA, REQUEST FOR PROPOSALS F41608-68-R-D482 ON THE GROUNDS THAT YOUR FIRM WAS NOT REQUESTED TO PROVIDE A PRICE FOR RECONDITIONED SUPPLIES AFTER RECEIPT OF A QUOTATION FROM AERO ON THAT BASIS.

THE REASON THE CONTRACTING OFFICER DID NOT SOLICIT YOUR COMPANY FOR A PRICE FOR RECONDITIONED PARTS WHEN HE DETERMINED THAT THE RECONDITIONED PARTS OFFERED BY AERO WERE ACCEPTABLE FOR USE WAS THAT HE DETERMINED THAT IT WOULD SERVE NO USEFUL PURPOSE SINCE THE PRICES QUOTED BY YOUR COMPANY FOR NEW PARTS WERE CONSIDERABLY HIGHER THAN AERO'S PRICES FOR RECONDITIONED PARTS. HOWEVER, THE AIR FORCE HAS REVIEWED THE PROCUREMENT AND HAS DECIDED THAT THE CONTRACTING OFFICER SHOULD HAVE AMENDED THE REQUEST FOR PROPOSALS AND PROVIDED YOUR COMPANY WITH AN OPPORTUNITY TO SUBMIT A REVISED PROPOSAL FOR RECONDITIONED PARTS, SINCE ASPR 1-1208 (B) PROVIDES THAT IN ALL PROCUREMENTS IN WHICH THE CONTRACTING OFFICER HAS DETERMINED THAT RECONDITIONED SUPPLIES ARE ACCEPTABLE THE SOLICITATION SHALL INCLUDE PROVISIONS INDICATING THEIR ACCEPTABILITY. MOREOVER, WE MIGHT OBSERVE THAT THE FACT AN OFFEROR HAS QUOTED HIGH PRICES FOR NEW PARTS IS NO REAL INDICATION THAT ITS PRICES FOR RECONDITIONED PARTS WOULD NOT BE MORE COMPETITIVE. THE ONLY REAL TEST IS TO SECURE A PROPOSAL ON THAT BASIS.

ALTHOUGH IT APPEARS THAT YOUR COMPANY SHOULD HAVE BEEN PROVIDED WITH AN OPPORTUNITY TO QUOTE FOR RECONDITIONED PARTS, NO CORRECTIVE ACTION IS CONTEMPLATED AT THIS TIME IN VIEW OF THE PRESENT POSTURE OF THE SITUATION. HOWEVER, THE AIR FORCE HAS ADVISED THAT THE AIR FORCE LOGISTICS COMMAND, WHICH HAS JURISDICTION OF THE PROCURING ACTIVITY, HAS BEEN INSTRUCTED AS TO THE PROPER PROCEDURE TO FOLLOW IN FUTURE NEGOTIATED PROCUREMENTS INVOLVING SIMILAR CIRCUMSTANCES. THEREFORE, IT IS ANTICIPATED THAT THIS SITUATION WILL NOT BE REPEATED.