B-150318, MAR. 25, 1963

B-150318, MAR. 25, 1963

TO THE SECRETARY OF THE AIR FORCE:

ENCLOSED IS A COPY OF OUR DECISION OF TODAY IN RESPONSE TO THE PROTEST BY ELCOM CORPORATION AGAINST THE AWARD OF ANY CONTRACT UNDER INVITATION FOR BIDS 04-606-63-65.

THIS MATTER WAS THE SUBJECT OF A REPORT SUBMITTED TO OUR OFFICE BY LETTER DATED FEBRUARY 27, 1963, FROM THE CHIEF, PROCUREMENT OPERATIONS DIVISION, DIRECTORATE, PROCUREMENT MANAGEMENT, DCS/S AND L. WHILE OUR DECISION DOES NOT CONSIDER THE PROPRIETY OF ALL ASPECTS OF THE BID EVALUATION SYSTEM, WE TAKE SPECIAL COGNIZANCE THAT THE PROCURING ACTIVITY PROPOSES TO DEVELOP, DURING THE COURSE OF THE CONTRACT, ESTIMATES OF WHICH AND HOW MANY UNITS OF INSTALLATION SERVICES AND MATERIALS MAY BE REQUIRED, AT REGULAR TIME AND OVERTIME PRICES, AND FOR THE NEXT ANNUAL CONTRACT INTENDS TO WEIGHT THESE UNITS ACCORDINGLY IN ORDER TO EVALUATE BIDS MORE ACCURATELY. ALSO NOTE THAT IN FUTURE CONTRACTS THE SCHEDULE FOR INSTALLATION SERVICES AND MATERIALS WILL INCLUDE ALL ITEMS OF WORK TO BE PERFORMED UNDER THE CONTRACT.

IN REGARD TO EVALUATION PRICES SUBMITTED UNDER SCHEDULE "D," WE NOTE THAT A FIXED PRICE FOR ANY GIVEN ORDER IS NOT ESTABLISHED UNTIL AFTER NEGOTIATIONS WITH THE CONTRACTOR ON THE PROPOSED NUMBER OF MAN-DAY HOURS PER EACH TYPE OF PERSONNEL HE INTENDS TO USE ON THAT PARTICULAR JOB. HOWEVER, OUR UNDERSTANDING IS THAT THE TECHNICAL ORDERS AND SPECIFICATIONS OF THE PROPOSED CONTRACT ARE SUFFICIENTLY DEFINITE SO THAT AIR FORCE TECHNICAL PERSONNEL WILL BE ABLE TO ESTABLISH A REASONABLE RANGE OF THE NUMBER OF MAN-DAYS FOR EACH TYPE OF CONTRACTOR PERSONNEL REQUIRED FOR ANY GIVEN SCHEME, AND THAT NO PURCHASE ORDER FOR THE DRAWING OF A SCHEME WILL BE ISSUED EXCEPT AT A PURCHASE PRICE WHICH FALLS WITHIN THIS REASONABLE RANGE. NONETHELESS, WE SUGGEST THAT FUTURE CONTRACTS INCORPORATE A CLAUSE WHEREBY ANY DISPUTE OF FACT ARISING AS TO THE NUMBER OF MAN-DAYS REQUIRED TO DESIGN A SCHEME WOULD BE DECIDED IN ACCORDANCE WITH THE DISPUTES CLAUSE.