B-168708(2), MAR. 10, 1970

B-168708(2): Mar 10, 1970

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INASMUCH AS BASIS FOR INCLUSION OF NOTE A.3 IS UNSATISFIED OFFSET COMMITMENT AND AIR FORCE REPORTS SPECIAL OFFSET COMMITMENT HAS BEEN FULFILLED BY U.S. IT IS RECOMMENDED THAT ACTION BE TAKEN TO DELETE NOTE FROM OUTSTANDING SOLICITATIONS TO REMOVE INCONSISTENCIES AND TO PREVENT FURTHER PROTESTS UNLESS IT IS CONTEMPLATED THAT IMMEDIATE ADDITIONAL CONSIDERATION WILL BE GIVEN TO DEFENSE POSITION CONCERNING APPLICABILITY OF HARRIER CONTRACT. SECRETARY: ENCLOSED IS A COPY OF OUR DECISION OF TODAY TO THE ATTORNEYS FOR FEDERAL ELECTRIC CORPORATION CONCERNING THAT COMPANY'S PROTEST AGAINST A PROPOSED AWARD OF A CONTRACT BY THE DEPARTMENT OF THE AIR FORCE FOR A SUBMARINE CABLE SUBSYSTEM TO UNITED STATES UNDERSEAS CABLE CORPORATION UNDER RFP F34601-69-R-0244A.

B-168708(2), MAR. 10, 1970

BIDS--BUY AMERICAN ACT--EVALUATION--BALANCE OF PAYMENTS PROGRAM RESTRICTIONS REQUEST FOR PROPOSAL FOR SUBMARINE CABLE SUBSYSTEM INCLUDED NOTE A.3, PART I, INTENDED TO IMPLEMENT SPECIAL OFFSET COMMITMENT BETWEEN U.S. AND UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND. INASMUCH AS BASIS FOR INCLUSION OF NOTE A.3 IS UNSATISFIED OFFSET COMMITMENT AND AIR FORCE REPORTS SPECIAL OFFSET COMMITMENT HAS BEEN FULFILLED BY U.S. PROCUREMENT OF HARRIER AIRCRAFT FROM WITHIN UNITED KINGDOM, IT IS RECOMMENDED THAT ACTION BE TAKEN TO DELETE NOTE FROM OUTSTANDING SOLICITATIONS TO REMOVE INCONSISTENCIES AND TO PREVENT FURTHER PROTESTS UNLESS IT IS CONTEMPLATED THAT IMMEDIATE ADDITIONAL CONSIDERATION WILL BE GIVEN TO DEFENSE POSITION CONCERNING APPLICABILITY OF HARRIER CONTRACT. SEE 49 COMP. GEN. ----- B- 168708 (1), MAR. 10, 1970).

TO MR. SECRETARY:

ENCLOSED IS A COPY OF OUR DECISION OF TODAY TO THE ATTORNEYS FOR FEDERAL ELECTRIC CORPORATION CONCERNING THAT COMPANY'S PROTEST AGAINST A PROPOSED AWARD OF A CONTRACT BY THE DEPARTMENT OF THE AIR FORCE FOR A SUBMARINE CABLE SUBSYSTEM TO UNITED STATES UNDERSEAS CABLE CORPORATION UNDER RFP F34601-69-R-0244A.

YOU WILL NOTE THAT ONE OF THE GROUNDS FOR THE PROTEST INVOLVED NOTE A.3, PART I, OF THE RFP WHICH WAS INTENDED TO IMPLEMENT A SPECIAL OFFSET COMMITMENT BETWEEN THE UNITED STATES AND THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND. IN THE REPORTS FURNISHED THIS OFFICE BY THE AIR FORCE IT IS STATED THAT THE SPECIAL OFFSET COMMITMENT HAS BEEN FULFILLED BY A UNITED STATES PROCUREMENT OF HARRIER AIRCRAFT FROM WITHIN THE UNITED KINGDOM, ALTHOUGH A CONTRARY OPINION APPEARS TO BE HELD BY BRITISH EMBASSY PERSONNEL.

IT IS OUR UNDERSTANDING THAT OTHER SOLICITATIONS CONTAINING THE NOTE, OR SIMILAR PROVISIONS, MAY HAVE BEEN ISSUED BY DEFENSE ESTABLISHMENTS, AND ARE AWAITING RECEIPT OF PROPOSALS OR BIDS. INASMUCH AS THE BASIS FOR INCLUSION OF NOTE A.3 IN A SOLICITATION IS AN UNSATISFIED OFFSET COMMITMENT, TO PERMIT THE NOTE TO REMAIN IN PRESENTLY OUTSTANDING SOLICITATIONS WOULD SEEM INCONSISTENT WITH THE DEPARTMENT OF DEFENSE POSITION THAT THE GOVERNMENT'S OFFSET COMMITMENT WAS FULFILLED BY THE HARRIER CONTRACT.

ACCORDINGLY, UNLESS IT IS CONTEMPLATED THAT IMMEDIATE ADDITIONAL CONSIDERATION WILL BE GIVEN TO THE DEPARTMENT OF DEFENSE POSITION CONCERNING THE APPLICABILITY OF THE HARRIER CONTRACT, AND IN ORDER THAT THE NOTE MAY NOT SERVE AS A BASIS FOR ADDITIONAL PROTESTS, IT IS RECOMMENDED THAT ACTION BE TAKEN TO DELETE THE NOTE FROM ANY OUTSTANDING SOLICITATIONS.