B-178379(2), B-178163, MAY 10, 1974

B-178163,B-178379(2): May 10, 1974

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ENCLOSED IS A COPY OF OUR DECISION OF TODAY DENYING A & J'S PROTEST. YOU WILL NOTE THAT THE PROCURING ACTIVITY DETERMINED THAT AN IMPROVED MODEL OF THE ITEM COVERED BY CONTRACT -0941. THE CONTRACT WAS AMENDED.

B-178379(2), B-178163, MAY 10, 1974

PRECIS-UNAVAILABLE

TO SECRETARY OF THE NAVY:

WE REFER TO LETTERS DATED MAY 23 AND AUGUST 3, 1973 (REFERENCE SUP 022E), FROM THE DEPUTY COMMANDER, PROCUREMENT MANAGEMENT, NAVAL SUPPLY SYSTEMS COMMAND, FURNISHING OUR OFFICE A REPORT AND SUPPLEMENTAL INFORMATION IN CONNECTION WITH A PROTEST BY A & J MANUFACTURING COMPANY (A & J) AGAINST AWARD OF CONTRACT TO GENERAL KINETICS INC., UNDER REQUEST FOR PROPOSALS (RFP) N00126-73-R-3N1453 AND N00126-73-R-3N3106, ISSUED BY THE NAVY ELECTRONICS SUPPLY OFFICE, GREAT LAKES, ILLINOIS. ENCLOSED IS A COPY OF OUR DECISION OF TODAY DENYING A & J'S PROTEST.

HOWEVER, WE DRAW YOUR ATTENTION TO THAT PORTION OF OUR DECISION DEALING WITH RFP -3N1453, WHICH RESULTED IN CONTRACT N00126-73-C-0941. YOU WILL NOTE THAT THE PROCURING ACTIVITY DETERMINED THAT AN IMPROVED MODEL OF THE ITEM COVERED BY CONTRACT -0941, AND ORIGINALLY OFFERED AS AN ALTERNATE PROPOSAL BY THE SUCCESSFUL CONTRACTOR, WOULD MORE ADEQUATELY MEET THE GOVERNMENT'S NEEDS. THEREUPON, THE CONTRACT WAS AMENDED, SHORTLY AFTER AWARD, TO PROVIDE FOR THE MORE EXPENSIVE MODEL.

WE BELIEVE THAT THE CIRCUMSTANCES DISCUSSED IN OUR DECISION RAISE SERIOUS QUESTIONS RESPECTING THE INTEGRITY OF THE PROCUREMENT SYSTEM. RECOMMEND THEREFORE THAT PROCUREMENT PERSONNEL BE APPRISED OF THIS MATTER AND OF THE IMPORTANCE OF ANTICIPATING, PRIOR TO AWARD, SPECIFICATION CHARGES OF THE CHARACTER INVOLVED HERE SO THAT DESIRED CHANGES IN SPECIFICATIONS MIGHT BE CONSIDERED IN THE COMPETITION.

PLEASE ADVISE US OF THE ACTIONS CONTEMPLATED IN THIS REGARD.