B-166110-2, AUG. 19, 1969

B-166110-2, AUG. 19, 1969

BID PROTEST - PRODUCT QUALIFICATION LETTER TO SECRETARY OF NAVY CONCERNING PROTEST AND RECOMMENDING THAT IN FUTURE WHEN FIRMS ATTEMPTING TO HAVE PRODUCTS QUALIFIED ARE REJECTED THE LETTERS CLEARLY SHOW BASIS FOR REJECTION SO THAT CORRECTION COULD BE AFFORDED.

TO MR. SECRETARY:

REFERENCE IS MADE TO LETTER SUP 0232A OF JULY 30, 1969, FROM THE ACTING DEPUTY COMMANDER, PURCHASING, NAVAL SUPPLY SYSTEMS COMMAND, AND PRIOR CORRESPONDENCE, REPORTING ON THE PROTEST OF CATALYTIC ENGINEERING AND MANUFACTURING CORPORATION IN CONNECTION WITH THE PROCUREMENT OF DEHYDRATOR CARTRIDGES BY THE AVIATION SUPPLY OFFICE (ASO).

THERE IS ENCLOSED FOR YOUR INFORMATION A COPY OF OUR LETTER OF TODAY TO THE PROTESTANT. YOUR ATTENTION IS INVITED TO OUR RECOMMENDATION THEREIN.

ALSO, WE WISH TO POINT OUT ANOTHER MATTER REGARDING THE PROCUREMENT WHICH WE BELIEVE REQUIRES ATTENTION.

THE LETTER OF JULY 30 REFERENCED A REPORT OF JULY 24, 1969, FROM ASO, WHEREIN IT IS STATED THAT THE PROCUREMENT FOR THE 20,000 CARTRIDGES WAS NOT REQUISITIONED FROM THE DEFENSE CONSTRUCTION SUPPLY CENTER (DCSC) BECAUSE ASO WAS UNDER THE MISTAKEN BELIEF THAT FEDERAL STOCK NUMBER 1650- 816-8682 HAD NOT BEEN CANCELED WHEN ASO EXECUTED THE CONTRACT FOR THE CARTRIDGES AND THAT ASO HAD PURCHASE COGNIZANCE OVER THE MATERIAL. IT IS STATED THAT THE CONTRACTING OFFICER WAS FIRST APPRISED OF THE CANCELLATION ON MAY 22, 1969.

THE EFFECTIVE DATE OF THE CONTRACT IS MAY 8, 1969. INFORMATION IN OUR FILE SHOWS THAT THE DEFENSE SUPPLY AGENCY (DSA) WROTE THE COMMANDER, NAVAL SUPPLY SYSTEMS COMMAND, ON APRIL 4, 1969, THAT THE STOCK NUMBER IS NOT VALID; THAT ASO MIGHT SUBMIT A REINSTATEMENT ACTION FOR THE ITEM IDENTIFICATION NUMBER -8682; BUT THAT, IN THAT EVENT, THE FEDERAL SUPPLY CLASSIFICATION MUST BE 4440. CLASS 4440 IS ASSIGNED TO DCSC FOR PURCHASE. SEE PARAGRAPH 5-1201.6 OF THE ARMED SERVICES PROCUREMENT REGULATION. FURTHER, BY LETTER OF APRIL 14, 1969, TO THE DEPUTY COMMANDER, PURCHASING, NAVAL SUPPLY SYSTEMS COMMAND, OUR OFFICE FURNISHED A COPY OF THE DSA LETTER OF APRIL 4, 1969, OBSERVING THE FOREGOING CONTENTS. THE ASO REPLY OF MAY 23, 1969, INDICATES THAT THE LETTER OF APRIL 14 WAS FORWARDED TO ASO ON APRIL 18, 1969.

IN THE CIRCUMSTANCES, IT APPEARS THAT, CONTRARY TO THE JULY 24 REPORT, ASO WAS ADVISED SUBSTANTIALLY IN ADVANCE OF THE AWARD THAT THE STOCK NUMBER HAD BEEN CANCELED AND THAT, IN THE EVENT IT WAS REINSTATED, DCSC WOULD HAVE PURCHASE COGNIZANCE OVER THE CARTRIDGES. WE BELIEVE THAT CORRECTIVE ACTION IS REQUIRED TO INSURE THAT SIMILAR OCCURRENCES WILL BE AVOIDED IN THE FUTURE.