B-179212(2), MAR 6, 1974

B-179212(2): Mar 6, 1974

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JR.: ENCLOSED IS A COPY OF OUR DECISION OF TODAY DENYING THE PROTEST OF ALTON IRON WORKS. WE BELIEVE SUCH AN ASSESSMENT WILL ENABLE YOUR AGENCY TO PROCURE ITS FUTURE REQUIREMENTS BY MEANS OF FORMAL ADVERTISING.

B-179212(2), MAR 6, 1974

PRECIS-UNAVAILABLE

TO LT. GEN WALLACE H. ROBINSON, JR.:

ENCLOSED IS A COPY OF OUR DECISION OF TODAY DENYING THE PROTEST OF ALTON IRON WORKS, INC., AGAINST YOUR AGENCY'S AWARD OF A CONTRACT FOR HOT CUPS TO STAR MANUFACTURING COMPANY UNDER REQUEST FOR PROPOSALS DSA 400-73-R- 9698. WHILE FOR THE REASONS STATED WE DENIED THE PROTEST, WE INVITE YOUR ATTENTION TO CERTAIN ASPECTS OF THE DECISION.

FIRST, WE FEEL THAT YOUR AGENCY SHOULD PROMPTLY ASSESS ITS ANTICIPATED FUTURE NEED FOR HOT CUPS. IF MADE IN A TIMELY MANNER, WE BELIEVE SUCH AN ASSESSMENT WILL ENABLE YOUR AGENCY TO PROCURE ITS FUTURE REQUIREMENTS BY MEANS OF FORMAL ADVERTISING. WE THINK THAT THE POLICY SET FORTH IN 10 U.S.C. 2304(A) DEMANDS THAT FURTHER PROCUREMENT OF THE ITEM SHOULD BE ACCOMPLISHED BY MEANS OF FORMAL ADVERTISING RATHER THAN BY AN EXERCISE OF THE "OPTION FOR INCREASED QUANTITY."

SECONDLY, WE CALL YOUR ATTENTION TO THE PROCEDURAL ERROR MADE BY THE PROCURING ACTIVITY IN FAILING TO ISSUE A WRITTEN AMENDMENT (AS REQUIRED BY ASPR 3-805.4(A)) TO THE RFP TO COVER THE CHANGE IN THE DELIVERY SCHEDULE. ALTHOUGH WE DO NOT FEEL THAT THIS OMISSION JUSTIFIES LEGAL OBJECTION TO THE AWARD IN THIS CASE, WE DO REGARD IT AS A SERIOUS ERROR WHICH SHOULD BE AVOIDED IN FUTURE PROCUREMENTS.