B-167049, DEC. 17, 1969

B-167049: Dec 17, 1969

Additional Materials:

Contact:

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

 

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

SINCE PROCURING 50-60 SETS EVERY 6 MONTHS THROUGH 1972 IS SUBSTANTIAL PROCUREMENT. IS ADVISED NO ACTION IS CONTEMPLATED IN MATTER SINCE DETERMINATION TO SOLE-SOURCE EXPIRES ON JUNE 30. ALL SERVICE REQUIREMENTS THEREAFTER WILL BE PLACED WITH DEPT. RICHARD LAUFER: REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 4. IN YOUR LETTER YOU POINT OUT THAT IT WAS STATED IN THAT DECISION THAT THE NAVY'S DETERMINATION TO STANDARDIZE TO LIBBY WELDING CO. EQUIPMENT WAS BASED IN PART UPON THE COST OF DEVELOPING A COMPETITIVE PACKAGE WHICH WOULD EXCEED ANY ANTICIPATED SAVINGS LIKELY FROM COMPETITION. YOU INDICATE THAT IF 50 TO 60 SETS ARE GOING TO BE PROCURED EVERY 6 MONTHS ON THROUGH 1972. THIS WILL RESULT IN A SUBSTANTIAL PROCUREMENT AND THE SAVINGS THAT COULD BE ACHIEVED BY COMPETITION WOULD MORE THAN OFFSET THE EXPENSE OF PREPARING COMPETITIVE PROCUREMENTS.

B-167049, DEC. 17, 1969

NEGOTIATION--SOLE-SOURCE BASIS--CORRECTION OF PROCEDURE PROTESTANT OBJECTING TO ANOTHER SOLE-SOURCE PROCUREMENT OF 59 GENERATOR SETS, WHO STATES THAT ALTHOUGH NAVY HAD BASED ITS DETERMINATION, IN PART, TO STANDARDIZE TO ONE FIRM'S EQUIPMENT UPON PREMISE COST OF DEVELOPING COMPETITIVE PACKAGE WOULD EXCEED ANTICIPATED SAVINGS LIKELY FROM COMPETITION, SINCE PROCURING 50-60 SETS EVERY 6 MONTHS THROUGH 1972 IS SUBSTANTIAL PROCUREMENT, SAVINGS POSSIBLE THROUGH COMPETITION WOULD MORE THAN OFFSET COST OF COMPETITIVE PROCUREMENT, IS ADVISED NO ACTION IS CONTEMPLATED IN MATTER SINCE DETERMINATION TO SOLE-SOURCE EXPIRES ON JUNE 30, 1970, AND ALL SERVICE REQUIREMENTS THEREAFTER WILL BE PLACED WITH DEPT. OF DEFENSE DIESEL FAMILY, WITH ALL SERVICES UTILIZING SAME SPECIFICATION.

TO MR. RICHARD LAUFER:

REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 4, 1969, PROTESTING THE CONTINUED SOLE-SOURCE PROCUREMENT OF GENERATOR SETS FROM LIBBY WELDING CO; INC; AS EVIDENCED BY A LISTING IN THE COMMERCE BUSINESS DAILY ON DECEMBER 2, 1969, OF ANOTHER SOLE-SOURCE PROCUREMENT OF 59 SETS. WE PREVIOUSLY CONSIDERED A SIMILAR PROTEST FROM YOU IN B-167049 OF SEPTEMBER 3, 1969.

IN YOUR LETTER YOU POINT OUT THAT IT WAS STATED IN THAT DECISION THAT THE NAVY'S DETERMINATION TO STANDARDIZE TO LIBBY WELDING CO. EQUIPMENT WAS BASED IN PART UPON THE COST OF DEVELOPING A COMPETITIVE PACKAGE WHICH WOULD EXCEED ANY ANTICIPATED SAVINGS LIKELY FROM COMPETITION. YOU INDICATE THAT IF 50 TO 60 SETS ARE GOING TO BE PROCURED EVERY 6 MONTHS ON THROUGH 1972, THIS WILL RESULT IN A SUBSTANTIAL PROCUREMENT AND THE SAVINGS THAT COULD BE ACHIEVED BY COMPETITION WOULD MORE THAN OFFSET THE EXPENSE OF PREPARING COMPETITIVE PROCUREMENTS.

OUR INFORMATION IS THAT THE DETERMINATION AND FINDINGS OF THE ASSISTANT SECRETARY OF THE NAVY MADE UNDER 10 U.S.C. 2304 (A) (13), THAT THE EQUIPMENT OF LIBBY WELDING CO. IS NECESSARY FOR STANDARDIZATION AND INTERCHANGEABILITY WILL EXPIRE ON JUNE 30, 1970, AND THAT BEGINNING WITH FISCAL YEAR 1971, WHICH COMMENCES ON JULY 1, 1970, ALL SERVICE REQUIREMENTS WILL BE PLACED WITH THE DEPARTMENT OF DEFENSE DIESEL FAMILY AND ALL SERVICES WILL UTILIZE THE SAME SPECIFICATION.

WE TRUST THAT THE FOREGOING WILL CORRECT THE APPARENT MISUNDERSTANDING THAT THE SOLE-SOURCE DETERMINATION WILL CONTINUE THROUGH 1972. IN THE CIRCUMSTANCES, NO ACTION ON THE PROTEST IS CONTEMPLATED BY OUR OFFICE.