B-173487(3), DEC 10, 1971

B-173487(3): Dec 10, 1971

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WHICH IS DISPOSITIVE OF THE PRINCIPAL BASIS OF HAYES' PROTEST. TO HAYES INTERNATIONAL CORPORATION: FURTHER REFERENCE IS MADE TO YOUR PROTEST AGAINST THE AWARD OF A CONTRACT TO RAYCOMM INDUSTRIES. ENCLOSED IS A COPY OF OUR DECISION OF TODAY TO TEK-MAR. WE BELIEVE THIS DECISION IS ALSO DISPOSITIVE OF THE PRINCIPAL BASIS OF YOUR PROTEST. SINCE WE AGREE WITH THE POSITION OF THE DEPARTMENT OF THE ARMY THAT THE CONTRACT HOURLY BILLING RATES OF LESS THAN $1.60 PER SE DO NOT VIOLATE STATUTORY MINIMUM WAGE REQUIREMENTS BECAUSE THE RATES CHARGED THE GOVERNMENT DO NOT ESTABLISH THE RATES WHICH RAYCOMM WILL. YOUR PROTEST IS DENIED. ARE RETURNED.

B-173487(3), DEC 10, 1971

BID PROTEST - BID RESPONSIVENESS - WAGE RATES THE COMP. GEN. ENCLOSES A COPY OF DECISION B-173487(1) TO TEK-MAR, INC. WHICH IS DISPOSITIVE OF THE PRINCIPAL BASIS OF HAYES' PROTEST, AND POINTS OUT THAT SINCE GAO AGREES WITH THE POSITION OF THE DEPARTMENT OF THE ARMY THAT THE CONTRACT HOURLY BILLING RATES OF LESS THAN $1.60 PER SE DO NOT VIOLATE STATUTORY MINIMUM WAGE REQUIREMENTS, THE COMP. GEN. CANNOT AGREE WITH PROTESTANT'S POSITION THAT THE ARMY SANCTIONED A VIOLATION OF THE LABOR STATUTES.

TO HAYES INTERNATIONAL CORPORATION:

FURTHER REFERENCE IS MADE TO YOUR PROTEST AGAINST THE AWARD OF A CONTRACT TO RAYCOMM INDUSTRIES, INC. (RAYCOMM), UNDER REQUEST FOR PROPOSALS NO. DAAB07-71-R-0405, ISSUED BY THE U.S. ARMY ELECTRONICS COMMAND, FORT MONMOUTH, NEW JERSEY.

ENCLOSED IS A COPY OF OUR DECISION OF TODAY TO TEK-MAR, INC., ONE OF FOUR COMPANIES, INCLUDING YOUR OWN, TO QUESTION THE PROCEDURES EMPLOYED IN THE INSTANT PROCUREMENT. WE BELIEVE THIS DECISION IS ALSO DISPOSITIVE OF THE PRINCIPAL BASIS OF YOUR PROTEST.

SINCE WE AGREE WITH THE POSITION OF THE DEPARTMENT OF THE ARMY THAT THE CONTRACT HOURLY BILLING RATES OF LESS THAN $1.60 PER SE DO NOT VIOLATE STATUTORY MINIMUM WAGE REQUIREMENTS BECAUSE THE RATES CHARGED THE GOVERNMENT DO NOT ESTABLISH THE RATES WHICH RAYCOMM WILL, IN FACT, PAY ITS EMPLOYEES, WE CANNOT AGREE WITH YOUR POSITION THAT ARMY SANCTIONED THE PAYMENT OF LABOR RATES IN CLEAR VIOLATION OF THE LABOR STATUTES.

ACCORDINGLY, AND FOR THE REASONS STATED IN THE ENCLOSURE, YOUR PROTEST IS DENIED.

THE ENCLOSURES FURNISHED WITH YOUR LETTER OF AUGUST 12, 1971, ARE RETURNED.