Matters Related to Dr. Lewis B. Udis, Alan Scott Industries

PSAD-79-90: Published: Jun 11, 1979. Publicly Released: Jun 11, 1979.

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Dr. Lewis B. Udis, the president of Alan Scott Industries, requested a review of a dispute concerning two unsolicited value engineering change proposals (VECPs) that he had submitted to the Defense Personnel Support Center (DPSC). Both VECPs were directed to specifications of DPSC for the purchase of dental and surgical instruments. Dr. Udis applied for value engineering participation in savings that he claimed would result from VECPs concerning: (1) the lot sample size for heat treat and hardness testing, and (2) the use of copper sulfate and boil tests for corrosion resistance. DPSC refused to permit an award to Dr. Udis on the ground that the savings he claimed were based on conjecture and not on fact.

GAO agreed with DPSC that there was insufficient evidence in his proposals to justify a share of monetary savings to Dr. Udis. In reaching this decision, GAO obtained consultative technical advice on metallurgy from an independent source. The preponderance of evidence from this source and from manufacturers and suppliers of dental and surgical instruments substantiated the decision of DPSC to reject the VECPs of Dr. Udis proposing to eliminate the copper sulfate and boil tests. Evidence indicates that an instrument which does pass these tests is less likely to form corrosion products in dental and surgical use than one which does not pass the tests. DPSC must provide the necessary quality tests to assure that the Government gets what it pays for. Furthermore, the tests cannot be considered restrictive because other manufacturers routinely use these tests.

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