B-171367(2), SEP 22, 1971

B-171367(2): Sep 22, 1971

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RECAPITULATION OF CONTRACTS AWARDED SINCE 1969 INDICATES THAT SUCCESSFUL OFFERORS HAVE MET OR EXCEEDED GOVERNMENT MANNING ESTIMATES. PROTEST IS DENIED. LTD.: FURTHER REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 3. IT IS CONTENDED THAT. FINANCIAL SURVEYS WERE NEVER CONDUCTED ON PROSPECTIVE UNITED STATES CONTRACTORS. THAT A FIRM'S EXPERIENCE WAS JUDGED ON THE BASIS OF THE PERSONNEL IT EMPLOYS. THAT INCUMBENT OFFERORS INVARIABLY REDUCE THEIR MANPOWER ESTIMATES DURING THE TIME PROPOSALS ARE EVALUATED ONLY TO INCREASE THEIR PERSONNEL THROUGH CONTRACT MODIFICATIONS IMMEDIATELY AFTER AWARD. THAT THE CONTENTS OF SUBMITTED PROPOSALS ARE OFTEN "LEAKED" BY LOCAL NATIONALS EMPLOYED BY KPA. WE HAVE BEEN ADVISED BY KPA THAT DOCUMENTATION CUSTOMARILY IS ON HAND "FROM KPA COST AND PRICE ANALYSIS BRANCH OR OTHER GOVERNMENT AUDIT AGENCIES" WHICH AFFORDS A BASIS TO DETERMINE THE FINANCIAL CAPABILITIES OF PROSPECTIVE CONTRACTORS IN CONNECTION WITH RESPONSIBILITY FINDINGS OF FACT.

B-171367(2), SEP 22, 1971

BID PROTEST - LOW MANNING ESTIMATES DECISION DENYING PROTEST OF HUWIN CORPORATION AND HYUP WOO INDUSTRIAL CO. LTD. AGAINST AWARD OF CONTRACT UNDER RFP ISSUED BY U.S. ARMY KOREA PROCUREMENT AGENCY FOR MANAGEMENT AND MAINTENANCE OF CERTAIN ARMY REAL PROPERTY IN KOREA. ALTHOUGH PROTESTANT CONTENDS THAT OFFERORS ESTIMATE THEIR MANNING NEEDS LOW, THEN INCREASE PERSONNEL AFTER AWARD BY CONTRACT MODIFICATION, RECAPITULATION OF CONTRACTS AWARDED SINCE 1969 INDICATES THAT SUCCESSFUL OFFERORS HAVE MET OR EXCEEDED GOVERNMENT MANNING ESTIMATES. THEREFORE, PROTEST IS DENIED.

TO HUWIN CORPORATION AND HYUP WOO INDUSTRIAL CO., LTD.:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 3, 1970, PROTESTING AGAINST CERTAIN PROCUREMENT PROCEDURES OF THE UNITED STATES ARMY KOREA PROCUREMENT AGENCY (KPA) INVOLVED IN THE AWARD OF CONTRACTS UNDER REQUEST FOR PROPOSALS (RFP) DAJB03-70-R-6085 AND PRIOR SOLICITATIONS FOR THE MANAGEMENT, OPERATION, MAINTENANCE AND REPAIR OF CERTAIN ARMY REAL PROPERTY FACILITIES LOCATED IN KOREA.

IT IS CONTENDED THAT, UNTIL RFP -6085, FINANCIAL SURVEYS WERE NEVER CONDUCTED ON PROSPECTIVE UNITED STATES CONTRACTORS; THAT A FIRM'S EXPERIENCE WAS JUDGED ON THE BASIS OF THE PERSONNEL IT EMPLOYS; THAT INCUMBENT OFFERORS INVARIABLY REDUCE THEIR MANPOWER ESTIMATES DURING THE TIME PROPOSALS ARE EVALUATED ONLY TO INCREASE THEIR PERSONNEL THROUGH CONTRACT MODIFICATIONS IMMEDIATELY AFTER AWARD; AND THAT THE CONTENTS OF SUBMITTED PROPOSALS ARE OFTEN "LEAKED" BY LOCAL NATIONALS EMPLOYED BY KPA.

CONCERNING FINANCIAL SURVEYS, WE HAVE BEEN ADVISED BY KPA THAT DOCUMENTATION CUSTOMARILY IS ON HAND "FROM KPA COST AND PRICE ANALYSIS BRANCH OR OTHER GOVERNMENT AUDIT AGENCIES" WHICH AFFORDS A BASIS TO DETERMINE THE FINANCIAL CAPABILITIES OF PROSPECTIVE CONTRACTORS IN CONNECTION WITH RESPONSIBILITY FINDINGS OF FACT.

AS TO YOUR SECOND POINT, A RECAPITULATION OF CONTRACTS AWARDED SINCE FISCAL YEAR 1969 BY KPA INDICATES THAT OFFERORS GENERALLY MET OR EXCEEDED THE GOVERNMENT'S MANNING ESTIMATES. HOWEVER, WE ARE ADVISED THAT ONE CONTRACT AWARDED TO AN INCUMBENT DURING THAT PERIOD DOES REVEAL AN OFFER OF ONE LESS AMERICAN EMPLOYEE THAN THE GOVERNMENT'S ESTIMATE BUT WE DO NOT CONSIDER SUCH AN OFFER TO BE PARTICULARLY SIGNIFICANT. MOREOVER, THE CLOSENESS BETWEEN SUCCESSFUL CONTRACTORS' MANNING LEVELS AND GOVERNMENT ESTIMATES WOULD IMPLY THAT ANY MODIFICATIONS WHICH MAY HAVE BEEN MADE AFTER THE VARIOUS AWARDS WERE MADE FOR BONA FIDE REASONS.

WITH RESPECT TO HOW A FIRM'S EXPERIENCE IS TO BE JUDGED, IT WOULD APPEAR THAT THE CONTRACTING OFFICER AGREES WITH THE ESSENCE OF YOUR POSITION FOR HE STATES: "IT IS THE OPINION OF THE UNDERSIGNED THAT A FIRM SHOULD BE JUDGED BY ITS REPUTATION AND PERFORMANCE, WHICH IN TURN, IS DEVELOPED BY THE PERSONNEL EMPLOYED BY THAT FIRM."

FINALLY, WHATEVER MAY HAVE BEEN THE SITUATION IN THE PAST WITH RESPECT TO THE UNAUTHORIZED DISSEMINATION OF INFORMATION CONTAINED IN SUBMITTED PROPOSALS, A REVIEW OF RFP -6085 LEADS US TO CONCLUDE THAT A CONSCIENTIOUS AND DILIGENT EFFORT WAS MADE UNDER THAT PROCUREMENT TO PROTECT SUCH INFORMATION. IT IS OUR VIEW THAT THE EFFORTS OF THE CONTRACTING OFFICER IN THIS REGARD CANNOT BE FAULTED.