B-196760(2),L/M, FEB 22, 1980

B-196760(2),L/M: Feb 22, 1980

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DEPARTMENT OF THE NAVY: ENCLOSED IS A COPY OF OUR DECISION OF TODAY CONCERNING A BID PROTEST FILED IN OUR OFFICE BY U. THE PROTEST IS THE LATEST IN A SERIES OF COMPLAINTS FILED IN OUR OFFICE BY USDC CONCERNING THE IMPLEMENTATION OF YOUR COMMITTEE'S REQUIREMENTS FOR UNDERGROUND HEAT DISTRIBUTION CONDUIT SYSTEMS. ENCLOSED ARE COPIES OF OUR DECISIONS OF MAY 15. PLEASE NOTE THAT WE HAVE SUSTAINED USDC'S PRESENT PROTEST AGAINST THE ISSUANCE BY YOUR COMMITTEE OF LETTERS OF ACCEPTABILITY TO CONDUIT SUPPLIERS CONTINGENT ON THE USE OF JOHNS-MANVILLE'S THERMO-12 INSULATION. THE BASIS FOR OUR CONCLUSION IS THAT THE RECORD BEFORE OUR OFFICE INDICATES THAT THE LETTERS OF ACCEPTABILITY HAVE BEEN ISSUED EVEN THOUGH ONLY ONE OF A NUMBER OF THE TESTS PRESCRIBED BY YOUR COMMITTEE TO DETERMINE THE ACCEPTABILITY OF THAT INSULATION HAS BEEN PERFORMED.

B-196760(2),L/M, FEB 22, 1980

PRECIS-UNAVAILABLE

FLOYD C. HILDEBRAND, DEPARTMENT OF THE NAVY:

ENCLOSED IS A COPY OF OUR DECISION OF TODAY CONCERNING A BID PROTEST FILED IN OUR OFFICE BY U. S. DURACON CORPORATION (USDC) AGAINST THE AWARD BY THE DEPARTMENT OF THE NAVY OF A CONTRACT UNDER INVITATION FOR BIDS NO. N62474-78-B-0157 FOR THE CONSTRUCTION OF A TRAINING BUILDING AT THE NAVY'S FLEET TRAINING CENTER IN SAN DIEGO, CALIFORNIA. THE PROTEST IS THE LATEST IN A SERIES OF COMPLAINTS FILED IN OUR OFFICE BY USDC CONCERNING THE IMPLEMENTATION OF YOUR COMMITTEE'S REQUIREMENTS FOR UNDERGROUND HEAT DISTRIBUTION CONDUIT SYSTEMS. ENCLOSED ARE COPIES OF OUR DECISIONS OF MAY 15, JUNE 18, AND DECEMBER 27, 1979, ON THESE MATTERS.

PLEASE NOTE THAT WE HAVE SUSTAINED USDC'S PRESENT PROTEST AGAINST THE ISSUANCE BY YOUR COMMITTEE OF LETTERS OF ACCEPTABILITY TO CONDUIT SUPPLIERS CONTINGENT ON THE USE OF JOHNS-MANVILLE'S THERMO-12 INSULATION. AS STATED IN THE DECISION, THE BASIS FOR OUR CONCLUSION IS THAT THE RECORD BEFORE OUR OFFICE INDICATES THAT THE LETTERS OF ACCEPTABILITY HAVE BEEN ISSUED EVEN THOUGH ONLY ONE OF A NUMBER OF THE TESTS PRESCRIBED BY YOUR COMMITTEE TO DETERMINE THE ACCEPTABILITY OF THAT INSULATION HAS BEEN PERFORMED, AND NOTWITHSTANDING THAT FURTHER TESTING APPARENTLY WAS CONTEMPLATED BY THE TESTING ACTIVITY. ACCORDINGLY, WE RECOMMEND THAT THE JOHNS-MANVILLE THERMO-12 BE INVESTIGATED FURTHER.

IN ADDITION, AS OUR DECISION INDICATES, THE NAVY HAS ADVISED US THAT THE TRI-SERVICE LETTER OF ACCEPTABILITY REQUIREMENTS ARE BEING PHASED OUT, AND CONCLUSIVE TESTING AND EVALUATION OF USDC'S PRODUCT WITH RESPECT TO ITS DESIGN AND PERFORMANCE PROPERTIES CAN BE ANTICIPATED. ALTHOUGH NO TIME FRAME WAS GIVEN FOR THESE ACTIONS, WE PRESUME THAT THEY WILL BE COMPLETED IN THE NEAR FUTURE. WE NOTE THAT USDC HAS ALREADY HAD ITS PRODUCT'S PERFORMANCE TESTED BY AN INDEPENDENT LABORATORY, AND HAS FURNISHED YOU THE TEST RESULTS.

WE WOULD APPRECIATE BEING ADVISED OF ANY FURTHER DEVELOPMENTS IN THESE RESPECTS.