B-151839, DEC. 11, 1963
Highlights
TO KRAUSE-AIRCO: FURTHER REFERENCE IS MADE TO YOUR LETTER DATED OCTOBER 5. TWO OF THE THREE PROPOSALS WERE SUBMITTED BY YOUR COMPANY AND DOUGLAS AIRCRAFT COMPANY. YOU OFFERED PARTS MADE IN ACCORDANCE WITH REVISION "J" TO DRAWING NO. 2104308 AT PRICES WHICH WERE CONSIDERABLY LESS THAN THE DOUGLAS QUOTATION OF $11.45 EACH. THE CONTRACT WAS AWARDED TO DOUGLAS ON THE BASIS THAT PARTS WOULD BE FURNISHED WHICH MET THE REQUIREMENTS OF REVISION "L. THE DEPARTMENT OF THE NAVY HAS REPORTED THAT "K" REVISION PARTS WERE DELIVERED BY DOUGLAS. THAT ACTION IS BEING TAKEN BY THE NAVY AVIATION SUPPLY OFFICE TO OBTAIN "L" REVISION PARTS AS REQUIRED BY THE TERMS OF THE DOUGLAS CONTRACT AND WHICH EXPRESS THE ACTUAL NEEDS OF THE NAVY.
B-151839, DEC. 11, 1963
TO KRAUSE-AIRCO:
FURTHER REFERENCE IS MADE TO YOUR LETTER DATED OCTOBER 5, 1963, COMMENTING ON OUR DECISION TO YOU OF SEPTEMBER 10, 1963, WHICH DENIED YOUR PROTEST AGAINST THE AWARD OF A CONTRACT TO DOUGLAS AIRCRAFT COMPANY, INC., UNDER NAVY AVIATION SUPPLY OFFICE REQUEST FOR QUOTATIONS NO. 383/224173/63Q, ISSUED ON FEBRUARY 4, 1963.
THE DECISION SETS FORTH THAT THE NAVY PROPOSED TO PURCHASE 2,879 UNITS OF A JOINT ASSEMBLY TO BE IN ACCORDANCE WITH THE LATEST REVISION TO DOUGLAS AIRCRAFT DRAWING NO. 2104308. TWO OF THE THREE PROPOSALS WERE SUBMITTED BY YOUR COMPANY AND DOUGLAS AIRCRAFT COMPANY, INC. YOU OFFERED PARTS MADE IN ACCORDANCE WITH REVISION "J" TO DRAWING NO. 2104308 AT PRICES WHICH WERE CONSIDERABLY LESS THAN THE DOUGLAS QUOTATION OF $11.45 EACH. THE CONTRACT WAS AWARDED TO DOUGLAS ON THE BASIS THAT PARTS WOULD BE FURNISHED WHICH MET THE REQUIREMENTS OF REVISION "L," THE LATEST REVISION TO DRAWING NO. 2104308 WHICH BECAME EFFECTIVE ON APRIL 19, 1956.
ON THE BASIS OF CERTAIN TRANSACTIONS BETWEEN YOUR COMPANY AND DOUGLAS AIRCRAFT COMPANY, INC., AND BETWEEN YOUR COMPANY AND A SUPPLIER OF DOUGLAS AIRCRAFT COMPANY, INC., YOU RAISED THE QUESTION AS TO WHETHER THE PARTS DELIVERED BY DOUGLAS UNDER NAVY CONTRACT CONFORMED TO REVISION "L," OF DRAWING NO. 2104308, AS REQUIRED. WITH RESPECT TO THAT QUESTION, THE DEPARTMENT OF THE NAVY HAS REPORTED THAT "K" REVISION PARTS WERE DELIVERED BY DOUGLAS; THAT DOUGLAS OFFERED A REDUCTION IN PRICE FOR ACCEPTANCE OF THE PARTS DELIVERED; BUT THAT ACTION IS BEING TAKEN BY THE NAVY AVIATION SUPPLY OFFICE TO OBTAIN "L" REVISION PARTS AS REQUIRED BY THE TERMS OF THE DOUGLAS CONTRACT AND WHICH EXPRESS THE ACTUAL NEEDS OF THE NAVY.
IN THE CIRCUMSTANCES, IT APPEARS THAT FURTHER ACTION BY THIS OFFICE IN THE MATTER IS NOT REQUIRED. YOUR SUGGESTION THAT WE INVESTIGATE THE QUESTION AS TO WHETHER OR NOT DOUGLAS WAS PERFORMING IN ACCORDANCE WITH THE REQUIREMENTS OF ITS CONTRACT WITH THE NAVY IS APPRECIATED.