B-173148, AUG 13, 1971

B-173148: Aug 13, 1971

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WHICH WAS THE SUBJECT MATTER OF THIS PROCUREMENT. WAS IMPROVED BY A CHANGE IN THE CONTRACT TO PROVIDE FOR GREATER HEAT RESISTANCE. AS THE GOVERNMENT DOES NOT HAVE ADEQUATE SPECIFICATIONS IN THE UTE PRODUCT FOR COMPETITIVE PROCUREMENT. TO TRAK MICROWAVE CORPORATION: REFERENCE IS MADE TO YOUR LETTER DATED MAY 27. IT IS ADMINISTRATIVELY REPORTED THAT THE OSCILLATOR IS A COMPONENT OF THE AN/APN -154 RADAR NAVIGATION SET. IT IS ALSO REPORTED THAT UTE WAS THE ONLY FIRM SOLICITED UNDER REQUEST FOR QUOTATIONS NO. N00383-71-Q 0449 FOR FURNISHING THE OSCILLATORS BECAUSE THE GOVERNMENT DOES NOT HAVE ADEQUATE DATA TO PROCURE THE OSCILLATORS FROM ANY OTHER COMPANY. YOU CONTEND THAT TRAK MICROWAVE CORPORATION SHOULD HAVE BEEN ALLOWED TO SUBMIT A QUOTATION UNDER THE SOLICITATION.

B-173148, AUG 13, 1971

BID PROTEST - SOLE SOURCE PROCUREMENT - JUSTIFICATION DECISION DENYING PROTEST OF TRAK MICROWAVE CORPORATION AGAINST AWARD OF SOLE SOURCE CONTRACT TO UNITED TELECONTROL ELECTRONICS, INCORPORATED (UTE) UNDER RFQ ISSUED BY NAVY AVIATION SUPPLY OFFICE, PHILADELPHIA, PA. SINCE IT APPEARS THE OSCILLATOR, WHICH WAS THE SUBJECT MATTER OF THIS PROCUREMENT, WAS IMPROVED BY A CHANGE IN THE CONTRACT TO PROVIDE FOR GREATER HEAT RESISTANCE, AND AS THE GOVERNMENT DOES NOT HAVE ADEQUATE SPECIFICATIONS IN THE UTE PRODUCT FOR COMPETITIVE PROCUREMENT, NO BASIS TO DISTURB THE SOLE SOURCE AWARD EXISTS. PROTEST DENIED.

TO TRAK MICROWAVE CORPORATION:

REFERENCE IS MADE TO YOUR LETTER DATED MAY 27, 1971, PROTESTING THE AWARD OF CONTRACT NO. N00383-71-C-3873 TO UNITED TELECONTROL ELECTRONICS, INCORPORATED (UTE), BY THE NAVY AVIATION SUPPLY OFFICE, PHILADELPHIA, PENNSYLVANIA.

THE SUBJECT CONTRACT PROVIDES FOR THE FURNISHING OF A TOTAL QUANTITY OF 224 OSCILLATORS, UTE PART NUMBER 92C021, AT A UNIT PRICE OF $550. IT IS ADMINISTRATIVELY REPORTED THAT THE OSCILLATOR IS A COMPONENT OF THE AN/APN -154 RADAR NAVIGATION SET. IT IS ALSO REPORTED THAT UTE WAS THE ONLY FIRM SOLICITED UNDER REQUEST FOR QUOTATIONS NO. N00383-71-Q 0449 FOR FURNISHING THE OSCILLATORS BECAUSE THE GOVERNMENT DOES NOT HAVE ADEQUATE DATA TO PROCURE THE OSCILLATORS FROM ANY OTHER COMPANY.

YOU CONTEND THAT TRAK MICROWAVE CORPORATION SHOULD HAVE BEEN ALLOWED TO SUBMIT A QUOTATION UNDER THE SOLICITATION. YOU STATE IN THIS REGARD THAT SINCE 1963 TRAK MICROWAVE CORPORATION HAS SUPPLIED OSCILLATORS TO MOTOROLA, INCORPORATED, FOR INCORPORATION IN THEIR AN/APN-154 RADAR NAVIGATION SETS; THAT YOU HAVE SUPPLIED THEM DIRECTLY TO THE AVIATION SUPPLY OFFICE (ASO) SINCE 1967; AND THAT YOU HAVE SOLD THESE OSCILLATORS TO UTE. YOU STATE FURTHER THAT TRAK MICROWAVE CORPORATION HAS MANUFACTURED MORE THAN 2,000 OF THESE OSCILLATORS FOR THE NAVIGATION SETS. YOU INDICATE THAT YOUR MOST RECENT CONTRACT FOR THESE OSCILLATORS WITH ASO WAS CONTRACT NO. N00383-71-C-0195, DATED SEPTEMBER 1, 1970, FOR 245 UNITS AT AN AVERAGE PRICE OF $403 EACH.

THE ADMINISTRATIVE REPORT INDICATES THAT A DETERMINATION AND FINDINGS (D&F) WAS ISSUED DECEMBER 4, 1970, PROVIDING FOR THE PROCUREMENT UNDER THE AUTHORITY OF 10 U.S.C. 2304(A)(10), AS IMPLEMENTED BY ASPR 3 210.2(XV) FROM UTE. THE STATUTORY PROVISION AUTHORIZES PROCUREMENT WITHOUT FORMAL ADVERTISING WHEN IT IS IMPRACTICAL TO OBTAIN COMPETITION. THE ASPR PROVISION AUTHORIZES THE USE OF THE STATUTORY AUTHORITY WHEN THE PROCUREMENT IS FOR PARTS OR COMPONENTS BEING PROCURED AS REPLACEMENT PARTS IN SUPPORT OF EQUIPMENT SPECIALLY DESIGNED BY THE MANUFACTURER, WHEN DATA AVAILABLE IS NOT ADEQUATE TO ASSURE THAT THE PART OR COMPONENT WILL PERFORM THE SAME FUNCTION IN THE EQUIPMENT AS THE PART OR COMPONENT IT IS TO REPLACE.

THE CONTRACTING OFFICER IN JUSTIFYING THE SOLE SOURCE SOLICITATION STATES AS FOLLOWS:

"3. THE GOVERNMENT DOES NOT HAVE A SPECIFICATION FOR OSCILLATORS; IT DOES, HOWEVER, HAVE A PERFORMANCE SPECIFICATION FOR THE AN/APN-154 NAVIGATION SET AND IT DOES HAVE A SET OF DRAWINGS FOR THE NAVIGATION SET THAT WAS PREPARED BY MOTOROLA AND DELIVERED TO THE GOVERNMENT APPROXIMATELY EITHT YEARS AGO. THE DRAWINGS DO NOT CONTAIN DETAILS OF THE TRAK OSCILLATOR; TRAK HAS MAINTAINED THAT SUCH DETAILS ARE PROPRIETARY TO IT AND HAS REFUSED TO FURNISH SUCH DATA TO THE GOVERNMENT. IT IS FURTHER UNDERSTOOD THAT BOTH MOTOROLA AND UTE HAVE BOUGHT OSCILLATORS FROM TRAK FOR THE INCLUSION IN RADAR NAVIGATION SETS MANUFACTURED BY THEM FOR THE GOVERNMENT. THIS OFFICE HAS ALSO BOUGHT OSCILLATORS FROM TRAK AND SUCH PURCHASES WERE MADE ON A SOLE SOURCE BASIS BECAUSE OF THE LACK OF DATA; THE PURCHASES WERE MADE TO THE TRAK PART NUMBER APPLICABLE TO THE TRAK OSCILLATORS CONTAINED IN THE RADAR NAVIGATION SETS DELIVERED TO THE GOVERNMENT.

"4. BY AN ECP (ENGINEERING CHANGE PROPOSAL) DATED 9 APRIL 1970 (EXHIBIT E) SUBMITTED UNDER CONTRACT N383-70-C-0473, UTE PROPOSED A CHANGE TO THE OSCILLATOR TO IMPROVE ITS HEAT RESISTANT CHARACTERISTICS. THE CHANGE, WHICH PROVIDED FOR THE FURNISHING OF AN OSCILLATOR THAT WOULD OPERATE AT TEMPERATURES UP TO AT LEAST 110 DEGS C IN LIEU OF 70 DEGS C WAS CONSIDERED ESPECIALLY DESIRABLE BECAUSE THE RADAR NAVIGATION SETS ARE MOUNTED IN AIRCRAFT IN AREAS SUBJECTED TO HIGH TEMPERATURE EXTREMES. THE ECP WAS APPROVED AND THE CONTRACT MODIFIED ON 16 SEPTEMBER 1970 TO PROVIDE FOR THE INCLUSION OF THE IMPROVED OSCILLATOR IN THE NAVIGATION SETS TO BE DELIVERED UNDER THE CONTRACT. THE RESULT OF THIS CHANGE WAS THE RECEIPT OF EQUIPMENTS WITH IMPROVED STABILITY, RELIABILITY, AND SERVICE LIFE. THE GOVERNMENT DOES NOT HAVE SPECIFICATIONS FOR THE UTE OSCILLATOR THAT ARE ADEQUATE FOR COMPETITIVE PROCUREMENT PURPOSES AND, SINCE THE TRAK OSCILLATOR DOES NOT CONTAIN THE HIGH HEAT RESISTANT CHARACTERISTICS OF THE UTE OSCILLATOR, ONLY UTE WAS SOLICITED FOR THE FURNISHING OF OSCILLATORS. THE GOVERNMENT HAS, HOWEVER, CONTRACTED WITH UTE FOR THE FURNISHING OF AN UPDATED SET OF DRAWINGS AND FOR A REVISED SPECIFICATION WHICH WILL, IT IS CONSIDERED, BE ADEQUATE FOR FUTURE COMPETITIVE PROCUREMENT OF OSCILLATORS. DELIVERY OF THE DRAWINGS AND REVISED SPECIFICATIONS, WHICH HAS BEEN DELAYED FOR APPROXIMATELY ONE YEAR (IN PART BECAUSE OF CHANGES REQUESTED BY THE GOVERNMENT), IS NOW SCHEDULED FOR DELIVERY ON 31 JULY 1971."

SINCE IT APPEARS THE OSCILLATOR WAS IMPROVED BY THE CHANGE UNDER CONTRACT NO. N383-70-C-0473 AND THE GOVERNMENT DOES NOT HAVE ADEQUATE SPECIFICATIONS OF THE UTE PRODUCT FOR COMPETITIVE PROCUREMENT, WE FIND NO REASON TO QUESTION THE PROCUREMENT ON A SOLE-SOURCE BASIS, OR TO OTHERWISE JUSTIFY DISTURBING THE AWARD. ACCORDINGLY, YOUR PROTEST IS DENIED.