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B-192376, AUG 10, 1978

B-192376 Aug 10, 1978
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DIGEST: AWARD OF CONTRACT FOR NATO INFRASTRUCTURE WORK BY FEDERAL REPUBLIC OF GERMANY IS DISMISSED SINCE IT IS NEITHER FEDERAL PROCUREMENT NOR PROCUREMENT INVOLVING FEDERAL GRANT FUNDS. IT IS OUR UNDERSTANDING THAT THE DEPARTMENT OF THE ARMY APPROPRIATION FOR THE NATO INFRASTRUCTURE PROGRAM WILL BE USED INITIALLY TO FINANCE THIS PROCUREMENT. NATO WILL REIMBURSE THE UNITED STATES THROUGH THE FEDERAL REPUBLIC OF GERMANY. WE HAVE REFUSED TO CONSIDER PROTESTS OF CONTRACT AWARDS WHERE THE FUNDS INVOLVED IN THE PROCUREMENT ARE OBTAINED THROUGH A LOAN FROM THE U.S. THE SUBJECT PROCUREMENT WAS NOT CONDUCTED BY OR FOR THE UNITED STATES AND NATO IS OBLIGATED TO REPAY THE FUNDS MADE AVAILABLE TO THE FEDERAL REPUBLIC OF GERMANY BY THIS GOVERNMENT.

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B-192376, AUG 10, 1978

DIGEST: AWARD OF CONTRACT FOR NATO INFRASTRUCTURE WORK BY FEDERAL REPUBLIC OF GERMANY IS DISMISSED SINCE IT IS NEITHER FEDERAL PROCUREMENT NOR PROCUREMENT INVOLVING FEDERAL GRANT FUNDS.

INTERNATIONAL RESEARCH ASSOCIATES, INC.:

INTERNATIONAL RESEARCH ASSOCIATES, INC. PROTESTS THE AWARD OF A CONTRACT FOR NATO INFRASTRUCTURE PROJECT, THE LONG RANGE SECURITY PROGRAM, UNDER TENDER #105/77, ISSUED BY THE FEDERAL REPUBLIC OF GERMANY.

THE PROTESTER MAINTAINS THAT THE PROCURING ACTIVITY, BY PERMITTING TWO FIRMS TO SUPPLEMENT THEIR TECHNICAL PROPOSALS WITH NEW INFORMATION AND THEREBY AVERT DISQUALIFICATION, FAILED TO COMPLY WITH THE NATO RULES FOR INTERNATIONAL COMPETITIVE BIDDING (NATO DOCUMENT 2261). FURTHER, THE PROTESTER SUGGESTS THAT THE IMPORTANCE OF THE SUBJECT PROGRAM TO THE NATO DEFENSE SCHEME CALLS FOR CLOSE SCRUTINY BY THE PROCURING ACTIVITY OF THE PROJECTED ABILITY OF CONTESTANTS TO PERFORM IN ACCORDANCE WITH CONTRACT SPECIFICATIONS. PURSUANT TO THIS CONCERN, THE PROTESTER RECOMMENDS DISQUALIFICATION OF THE PROPOSAL SUBMITTED BY BBC/JOHNSON CONTROLS, BASED UPON SUBCONTRACTOR JOHNSON CONTROLS'"POOR REPUTATION IN THE INDUSTRY FOR MEETING SPECIFICATIONS."

IT IS OUR UNDERSTANDING THAT THE DEPARTMENT OF THE ARMY APPROPRIATION FOR THE NATO INFRASTRUCTURE PROGRAM WILL BE USED INITIALLY TO FINANCE THIS PROCUREMENT. IN DUE COURSE, NATO WILL REIMBURSE THE UNITED STATES THROUGH THE FEDERAL REPUBLIC OF GERMANY.

WE HAVE REFUSED TO CONSIDER PROTESTS OF CONTRACT AWARDS WHERE THE FUNDS INVOLVED IN THE PROCUREMENT ARE OBTAINED THROUGH A LOAN FROM THE U.S. GOVERNMENT BECAUSE SUCH PROTESTED AWARD INVOLVES NEITHER A PROCUREMENT BY OR FOR AN AGENCY OF THE UNITED STATES, NOR A PROCUREMENT BY A GRANTEE OF THE UNITED STATES.

4 C.F.R. 20.1(A) (1977). SEE NEW ENGLAND INSULATION CO., B-188784, APRIL 21, 1977, 77-1 CPD 276; ALLIS-CHALMERS CORPORATION, B-188514, APRIL 5, 1977, 77-1 CPD 235; GENERAL HANDLING SYSTEMS, INC., B-184220, JULY 17, 1975, 75-2 CPD 46.

THE SUBJECT PROCUREMENT WAS NOT CONDUCTED BY OR FOR THE UNITED STATES AND NATO IS OBLIGATED TO REPAY THE FUNDS MADE AVAILABLE TO THE FEDERAL REPUBLIC OF GERMANY BY THIS GOVERNMENT. IN VIEW OF THESE FACTS THE MATTER IS NOT FOR OUR CONSIDERATION AND IS DISMISSED.

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