B-166405-/2), JUL. 8, 1969

B-166405-/2): Jul 8, 1969

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SECRETARY: REFERENCE IS MADE TO THE ADMINISTRATIVE REPORTS DATED APRIL 10 AND MAY 27. ENCLOSED IS A COPY OF OUR DECISION OF TODAY DENYING THE CORPORATION'S PROTEST. IN REVIEWING THIS MATTER WE HAVE NOTED THAT THE CONTRACTING OFFICER IN HIS DISCUSSION OF FACTS AND RECOMMENDATIONS IN THE REPORT OF MAY 27 COMPARES THE TOTAL FOREIGN COMPONENT COST TO THE TOTAL UNIT COST FOR THE PURPOSE OF DETERMINING COMPLIANCE WITH THE BUY AMERICAN ACT. WE SUGGEST THAT IT MIGHT BE DESIRABLE TO POINT OUT TO HIM AND TO OTHER CONTRACTING PERSONNEL OF YOUR DEPARTMENT THAT CONSIDERATION OF THE TOTAL UNIT COST IS NOT RELEVANT FOR PURPOSES OF DETERMINING SUCH COMPLIANCE.

B-166405-/2), JUL. 8, 1969

TO MR. SECRETARY:

REFERENCE IS MADE TO THE ADMINISTRATIVE REPORTS DATED APRIL 10 AND MAY 27, 1969, YOUR REFERENCE SUP 0232A, FROM THE DEPUTY COMMANDER, PURCHASING, NAVAL SUPPLY SYSTEMS COMMAND, RELATIVE TO THE PROTEST OF SCHENCK TREBEL CORPORATION UNDER REQUEST FOR PROPOSALS N00189-69-R 0062, ISSUED BY THE NAVAL SUPPLY CENTER, NORFOLK, VIRGINIA.

ENCLOSED IS A COPY OF OUR DECISION OF TODAY DENYING THE CORPORATION'S PROTEST.

IN REVIEWING THIS MATTER WE HAVE NOTED THAT THE CONTRACTING OFFICER IN HIS DISCUSSION OF FACTS AND RECOMMENDATIONS IN THE REPORT OF MAY 27 COMPARES THE TOTAL FOREIGN COMPONENT COST TO THE TOTAL UNIT COST FOR THE PURPOSE OF DETERMINING COMPLIANCE WITH THE BUY AMERICAN ACT. WE SUGGEST THAT IT MIGHT BE DESIRABLE TO POINT OUT TO HIM AND TO OTHER CONTRACTING PERSONNEL OF YOUR DEPARTMENT THAT CONSIDERATION OF THE TOTAL UNIT COST IS NOT RELEVANT FOR PURPOSES OF DETERMINING SUCH COMPLIANCE, SINCE BOTH ARMED SERVICES PROCUREMENT REGULATION 6-101 (A) AND EXECUTIVE ORDER NO. 10582, AS AMENDED BY EXECUTIVE ORDER NO. 11051 CALL FOR COMPARISON OF THE COST OF THE FOREIGN PRODUCTS (OR COMPONENTS) USED WITH THE TOTAL COST OF ALL THE PRODUCTS (OR COMPONENTS) USED IN THE ITEM.