B-166405-/1), JUL. 8, 1969

B-166405-/1): Jul 8, 1969

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

TO SCHENCK TREBEL CORPORATION: FURTHER REFERENCE IS MADE TO YOUR LETTER OF MARCH 4. YOUR PROTEST IS MADE ON THE GROUNDS THAT THE MACHINES OFFERED BY AMERICAN HOFMANN DO NOT QUALIFY AS UNITED STATES MANUFACTURED END PRODUCTS. ARE END PRODUCTS OF FOREIGN ORIGIN WHICH ARE NOT ENTITLED TO THE PREFERENCE ACCORDED TO DOMESTIC END PRODUCTS. YOUR LETTER STATES THAT THE ELECTRONIC UNITS AND PICKUPS FOR THE AMERICAN HOFMANN GYRO BALANCERS ARE MANUFACTURED ABROAD AND WELL EXCEED 50 PERCENT OF THE TOTAL COMPONENT COSTS OF THE END PRODUCTS. THE FOLLOWING TERMS HAVE THE MEANINGS SET FORTH BELOW. "/A) DOMESTIC SOURCE END PRODUCT MEANS AN UNMANUFACTURED END PRODUCT WHICH HAS BEEN MINED OR PRODUCED IN THE UNITED STATES.

B-166405-/1), JUL. 8, 1969

TO SCHENCK TREBEL CORPORATION:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF MARCH 4, 1969, PROTESTING THE AWARD OF A CONTRACT FOR ROTOR BALANCING SYSTEMS, ULTRA PRECISION, TO AMERICAN HOFMANN CORPORATION UNDER REQUEST FOR PROPOSALS N00189-69-R-0062, ISSUED BY THE NAVAL SUPPLY CENTER, NORFOLK, VIRGINIA.

YOUR PROTEST IS MADE ON THE GROUNDS THAT THE MACHINES OFFERED BY AMERICAN HOFMANN DO NOT QUALIFY AS UNITED STATES MANUFACTURED END PRODUCTS, AS DEFINED IN ARMED SERVICES PROCUREMENT REGULATION (ASPR) 6 101 (A), BUT ARE END PRODUCTS OF FOREIGN ORIGIN WHICH ARE NOT ENTITLED TO THE PREFERENCE ACCORDED TO DOMESTIC END PRODUCTS. YOUR LETTER STATES THAT THE ELECTRONIC UNITS AND PICKUPS FOR THE AMERICAN HOFMANN GYRO BALANCERS ARE MANUFACTURED ABROAD AND WELL EXCEED 50 PERCENT OF THE TOTAL COMPONENT COSTS OF THE END PRODUCTS.

ASPR 6-101 (A) STATES IN PERTINENT PART AS FOLLOWS:

"6-101 DEFINITIONS. AS USED IN THIS PART, THE FOLLOWING TERMS HAVE THE MEANINGS SET FORTH BELOW.

"/A) DOMESTIC SOURCE END PRODUCT MEANS AN UNMANUFACTURED END PRODUCT WHICH HAS BEEN MINED OR PRODUCED IN THE UNITED STATES, OR AN END PRODUCT MANUFACTURED IN THE UNITED STATES IF THE COST OF ITS COMPONENTS WHICH ARE MINED, PRODUCED, OR MANUFACTURED IN THE UNITED STATES EXCEEDS 50 PERCENT OF THE COST OF ALL ITS COMPONENTS. THE COST OF COMPONENTS SHALL INCLUDE TRANSPORTATION COSTS TO THE PLACE OF INCORPORATION INTO THE END PRODUCT AND, IN THE CASE OF COMPONENTS OF FOREIGN ORIGIN, DUTY (WHETHER OR NOT A DUTY FREE ENTRY CERTIFICATE MAY BE ISSUED).'

IN A REPORT TO THIS OFFICE THE CONTRACTING OFFICER STATES THAT DURING THE EVALUATION OF THE THREE PROPOSALS RECEIVED UNDER THE SUBJECT SOLICITATION, SPECIAL ATTENTION WAS GIVEN TO THE BUY AMERICAN CERTIFICATION OF THE LOW ACCEPTABLE OFFEROR, AMERICAN HOFMANN, BUT NO EVIDENCE EXISTED AT THAT TIME TO QUESTION ITS CERTIFICATION.

CONCERNING THE QUESTION RAISED AS TO WHETHER THE CONTRACTOR IS, IN FACT, FURNISHING ITEMS WHICH COMPLY WITH THE BUY AMERICAN ACT, THE NAVY REPORTS THAT A CONTRACT PRICE ANALYST FOR THE DEFENSE CONTRACT ADMINISTRATION SERVICES DISTRICT, SPRINGFIELD, REQUESTED AND WAS FURNISHED A LIST OF COMPONENTS INCLUDED IN THE CONTRACT EQUIPMENT. IN ORDER TO CONFIRM THE COMPLETENESS OF THIS LIST THE NAVAL AIR REWORK FACILITY, NORFOLK, PERFORMED ITS OWN TECHNICAL EVALUATION, AND REPORTED THAT ITS INVESTIGATORS WERE UNABLE TO DETERMINE THAT ANY SIGNIFICANT COMPONENTS OR PARTS WERE OMITTED AND FOUND NO EVIDENCE OF FOREIGN MANUFACTURED COMPONENTS OTHER THAN THOSE LISTED BY THE CONTRACTOR. AN AUDIT OF THE COSTS OF BOTH FOREIGN AND DOMESTIC COMPONENTS WAS CONDUCTED BY A GOVERNMENT PRICE ANALYST IN WHICH PURCHASE ORDERS, PAID INVOICES, UNITED STATES CUSTOMS ENTRIES, SHIPPING DOCUMENTS, ETC., WERE EXAMINED. UPON EVALUATION IT WAS DETERMINED THAT THE COST OF PURCHASED DOMESTIC COMPONENTS IS IN EXCESS OF THE FOREIGN COMPONENT COST OF EACH UNIT, MAKING THE END ITEM A DOMESTIC ARTICLE WITHIN THE REQUIREMENTS OF THE BUY AMERICAN ACT.

IN THE CIRCUMSTANCES, WE FIND NO SUBSTANTIATION OF THE ALLEGATIONS OF YOUR PROTEST AND IT IS THEREFORE DENIED.