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B-164441, OCT. 30, 1968

B-164441 Oct 30, 1968
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GAUD: REFERENCE IS MADE TO YOUR LETTER OF JULY 8. ENCLOSED IS A COPY OF OUR DECISION TO ALLIS-CHALMERS ADVISING THE PROTESTANT THAT THERE IS NO BASIS FOR QUESTIONING THE VALIDITY OF THE AWARD MADE. THERE ARE SEVERAL MATTERS WHICH WE WISH TO BRING TO YOUR ATTENTION WITH RESPECT TO THIS PROCUREMENT. WE CANNOT AGREE THAT THE DEVIATION WAS A MERE "LACK OF CLARITY" WHICH AMOUNTED TO A MINOR INFORMALITY. WHILE IT MAY NOT HAVE BEEN CATERPILLAR TRACTOR'S INTENT TO TAKE ANY EXCEPTION TO THE WARRANTY REQUIREMENTS. CATERPILLAR TRACTOR'S BID WOULD HAVE BEEN CONSIDERED AS NONRESPONSIVE. IT IS FUNDAMENTAL TO SOUND PROCUREMENT PRACTICE THAT THE ACTUAL NEEDS BE DETERMINED PRIOR TO BID OPENING TO ASSURE THAT ALL BIDDERS HAVE THE OPPORTUNITY OF COMPETING FOR THESE NEEDS ON AN EQUAL BASIS.

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B-164441, OCT. 30, 1968

TO MR. GAUD:

REFERENCE IS MADE TO YOUR LETTER OF JULY 8, 1968, WITH ENCLOSURES, AND LETTER OF OCTOBER 4, 1968, CONCERNING THE PROTEST BY THE INTERNATIONAL DIVISION OF ALLIS-CHALMERS AGAINST THE AWARD OF A CONTRACT FOR 60 CRAWLER- TYPE TRACTORS TO THE CATERPILLAR TRACTOR COMPANY, PURSUANT TO A LOAN BY THE AGENCY FOR INTERNATIONAL DEVELOPMENT TO THE GOVERNMENT OF TURKEY.

ENCLOSED IS A COPY OF OUR DECISION TO ALLIS-CHALMERS ADVISING THE PROTESTANT THAT THERE IS NO BASIS FOR QUESTIONING THE VALIDITY OF THE AWARD MADE.

HOWEVER, THERE ARE SEVERAL MATTERS WHICH WE WISH TO BRING TO YOUR ATTENTION WITH RESPECT TO THIS PROCUREMENT.

FIRST, IN REGARD TO CATERPILLAR'S EXCEPTION TO THE WARRANTY REQUIREMENT, WE CANNOT AGREE THAT THE DEVIATION WAS A MERE "LACK OF CLARITY" WHICH AMOUNTED TO A MINOR INFORMALITY. WHILE IT MAY NOT HAVE BEEN CATERPILLAR TRACTOR'S INTENT TO TAKE ANY EXCEPTION TO THE WARRANTY REQUIREMENTS, NEVERTHELESS, UNDER THE STRICT RULES OF FORMALLY ADVERTISED PROCUREMENTS BY DEPARTMENTS AND AGENCIES OF THE UNITED STATES, CATERPILLAR TRACTOR'S BID WOULD HAVE BEEN CONSIDERED AS NONRESPONSIVE.

WITH RESPECT TO THE STARTING AID AND THE OIL GAUGE REQUIREMENT, IT IS FUNDAMENTAL TO SOUND PROCUREMENT PRACTICE THAT THE ACTUAL NEEDS BE DETERMINED PRIOR TO BID OPENING TO ASSURE THAT ALL BIDDERS HAVE THE OPPORTUNITY OF COMPETING FOR THESE NEEDS ON AN EQUAL BASIS.

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