B-130071, MAY 7, 1957

B-130071, MAY 7, 1957

TO WILKINSON MANUFACTURING COMPANY:

REFERENCE IS MADE TO LETTER DATED MARCH 25, 1957, FROM YOUR ATTORNEY, FURTHER PROTESTING THE ACTION OF THE ARMY ORDNANCE CORPS IN CONNECTION WITH A NEGOTIATED PROCUREMENT OF A QUANTITY OF 81 MILLIMETER M141 FIN ASSEMBLIES. THIS MATTER HAS BEEN THE SUBJECT OF PRIOR DECISIONS, WHEREIN WE CONCLUDED THAT WE PERCEIVED NO LEGAL BASIS OR AUTHORITY FOR OBJECTING TO THE ACTION TAKEN BY THE CONTRACTING OFFICIALS.

BEFORE SUBMITTING THE ABOVE LETTER OF MARCH 25, YOUR ATTORNEY VISITED THIS OFFICE AND CONTENDED SPECIFICALLY THAT ON DECEMBER 7, 1956, THREE DAYS PRIOR TO THE EXECUTION OF THE CONTRACT WITH THE MADISON-KIPP CORPORATION, MR. FRED ARKOOSH, REPRESENTING THE WILKINSON MANUFACTURING COMPANY, WAS IN JOLIET, ILLINOIS, AND, AT THAT TIME, MADE AN OFFER TO LOWER HIS PRICE ON THE FIN ASSEMBLIES WHICH, IF ACCEPTED, WOULD HAVE MADE HIM THE LOW SMALL BUSINESS BIDDER. YOUR ATTORNEY CALLED PARTICULAR ATTENTION TO THE STATEMENT CONTAINED IN OUR LETTER OF FEBRUARY 18, 1957, THAT WITH RESPECT TO NEGOTIATED PROCUREMENT, DISCUSSIONS WITH POTENTIAL SUPPLIERS MAY TAKE PLACE UP UNTIL THE MOMENT A CONTRACT IS SIGNED; AND INSISTED THAT THE OFFER OF DECEMBER 7TH SHOULD HAVE BEEN CONSIDERED BY THE CONTRACTING OFFICIALS. ACCORDINGLY, WE REQUESTED A FURTHER ADMINISTRATIVE REPORT COVERING THIS PHASE OF THE MATTER.

IN RESPONSE THERETO, THE DEPARTMENT OF THE ARMY INFORMED US THAT DURING HIS VISIT ON DECEMBER 7, 1956, MR. ARKOOSH DID INDICATE THAT THE WILKINSON MANUFACTURING COMPANY DESIRED TO REVISE ITS QUOTATION AGAINST THE NON-SET- ASIDE PORTION OF THE PROCUREMENT, BUT NO SPECIFIC NEW PRICE QUOTATION WAS MENTIONED. MR. ARKOOSH IS REPORTED TO HAVE BEEN ADVISED THAT INASMUCH AS THE NON-SET-ASIDE AWARD HAD ALREADY BEEN FINALIZED ON NOVEMBER 23, 1956, THE ONLY CURRENT PROCUREMENT ACTION WAS PROCUREMENT OF THE SET-ASIDE QUANTITY FOR SMALL BUSINESS. FURTHERMORE, IT WAS EXPLAINED THAT IF A REVISED BID WERE SUBMITTED FOR THE SET-ASIDE PORTION OF THE PROCUREMENT, IT COULD NOT BE CONSIDERED UNTIL SUCH TIME AS THE WILKINSON COMPANY BECAME ELIGIBLE FOR NEGOTIATION IN ACCORDANCE WITH ARMY REGULATION 715-3; AND THAT SUCH NEGOTIATIONS COULD NOT BE CONSIDERED UNTIL SUCH TIME AS NEGOTIATIONS WITH THE MADISON-KIPP CORPORATION FAILED TO RESULT IN AN AWARD AND FINALIZED CONTRACT. IT ALSO IS REPORTED THAT YOUR ATTORNEY MET WITH REPRESENTATIVES OF THE ARMY ORDNANCE CORPS ON MARCH 28, 1957, THAT HE INDICATED SATISFACTION WITH THE INFORMATION FURNISHED HIM AND ALSO THAT THE CASE NO LONGER WOULD BE PURSUED BY YOUR COMPANY. THIS REPORT HAS BEEN CONFIRMED BY YOUR ATTORNEY.

IN VIEW OF THE FOREGOING, THEREFORE, IT IS BELIEVED THAT NO FURTHER ACTION IS REQUIRED BY THIS OFFICE.