Skip to main content

B-146336, AUG. 18, 1961

B-146336 Aug 18, 1961
Jump To:
Skip to Highlights

Highlights

WHICH MATTER IS THE SUBJECT OF A REPORT OF JULY 24. ENCLOSED IS A COPY OF OUR DECISION OF TODAY TO JOHN OSTER MANUFACTURING COMPANY. IS CARRIED IN THE 1962 APPROPRIATION ACT.

View Decision

B-146336, AUG. 18, 1961

TO THE SECRETARY OF THE NAVY:

THIS REFERS TO A PROTEST RECEIVED HERE ON BEHALF OF JOHN OSTER MANUFACTURING COMPANY, AGAINST THE CONSIDERATION OF BIDS UNDER INVITATION FOR BIDS NO. 600-1168-61, WHICH MATTER IS THE SUBJECT OF A REPORT OF JULY 24, 1961 (REFERENCE R11.1), FROM YOUR ASSISTANT CHIEF FOR PURCHASING, BUREAU OF SUPPLIES AND ACCOUNTS, TO THIS OFFICE.

ENCLOSED IS A COPY OF OUR DECISION OF TODAY TO JOHN OSTER MANUFACTURING COMPANY. WHILE ON THE FACTS PRESENTED WE FIND NO VALID GROUND FOR OBJECTION TO THE PROCUREMENT INVOLVED, WE BELIEVE THAT FUTURE SET-ASIDES FOR SURPLUS LABOR AREAS OF MORE THAN 50 PERCENT OF PARTICULAR PROCUREMENTS CAN BE JUSTIFIED ONLY BY DEFINITE DETERMINATIONS, ON SUBSTANTIAL GROUNDS, THAT COSTS OR BID PRICES ON THE NON-SET-ASIDE PORTION OF THE PROCUREMENT COULD NOT REASONABLY BE EXPECTED TO BE GREATER THAN THEY WOULD BE FOR THE TOTAL QUANTITY OF THE PROCUREMENT. IF THE APPROPRIATION LIMITATION REFERRED TO IN OUR DECISION TO THE SECRETARY OF DEFENSE, B-145136, MARCH 3, 1961, 40 COMP. GEN. - , IS CARRIED IN THE 1962 APPROPRIATION ACT, WE SUGGEST THAT THE WORDS "ECONOMIC PRODUCTION RUN OR REASONABLE LOT" IN ASPR 1 804 BE DEFINED IN THE LIGHT OF THE ABOVE.

GAO Contacts

Office of Public Affairs