B-132460, B-132506, B-134407, JAN. 24, 1958

B-132460, B-132506, B-134407, JAN. 24, 1958

TO THE MANHATTAN LIGHTING EQUIPMENT COMPANY, INC.:

FURTHER REFERENCE IS MADE TO YOUR PROTESTS AGAINST THE ACTION OF THE U.S. NAVY PURCHASING OFFICE, WASHINGTON, D.C., IN HAVING REJECTED YOUR LOW BIDS SUBMITTED IN RESPONSE TO INVITATIONS NOS. 600-40-58 AND 600 42-58, ISSUED JULY 8 AND 12, 1957.

THE ADMINISTRATIVE REPORT REQUESTED OF THE DEPARTMENT OF THE NAVY ON THESE MATTERS HAS NOW BEEN RECEIVED. FROM A CAREFUL ANALYSIS OF SUCH REPORT IT APPEARS THAT YOUR FIRM SUBMITTED THE LOWEST BID ON ITEM 26 OF INVITATION FOR BIDS NO. 600-40-58 AND ALSO ITEMS NOS. 29, 30, 32, 33 AND 34 OF INVITATION NO. 600-42-58, OPENED ON JULY 8 AND AUGUST 2, 1957, RESPECTIVELY. THESE BIDS WERE REJECTED BY THE CONTRACTING OFFICER ON THE BASIS OF AN ADMINISTRATIVE DETERMINATION THAT YOUR FIRM WAS NOT A "REGULAR DEALER" WITHIN THE PURVIEW OF SECTION 1.201.9 (A) (1) OF THE ARMED SERVICES PROCUREMENT REGULATIONS. THIS LETTER DETERMINATION WAS BASED UPON A REPORT DATED MARCH 19, 1957, PREPARED BY THE INSPECTOR OF NAVAL MATERIAL, NEW YORK CITY, SETTING FORTH A LIST OF THE ITEMS ON WHICH YOUR FIRM WAS CONSIDERED ELIGIBLE TO BID AS A REGULAR DEALER. IN THIS CONNECTION, IT HAS BEEN REPORTED TO US BY THE DEPARTMENT OF THE NAVY THAT THIS LIST WAS COMPILED AFTER A TWO-DAY INSPECTION OF YOUR ESTABLISHMENT BY TWO QUALIFIED INSPECTORS OF NAVAL MATERIAL. FURTHERMORE, IT APPEARS THAT THIS SURVEY WAS MADE AT YOUR SPECIFIC REQUEST, AND WAS AUTHORIZED BY THE OFFICE OF NAVAL MATERIAL TO PROVIDE A GUIDE FOR CONTRACTING OFFICERS IN THE NAVAL ESTABLISHMENT, AND TO ELIMINATE THE NECESSITY OF MAKING FUTURE SURVEYS OF YOUR PLANT ON A CASE BY CASE BASIS.

CONCERNING YOUR CONTENTION THAT YOU HAD FURNISHED THE SAME OR SIMILAR ITEMS UNDER PREVIOUS NAVY CONTRACTS, THE RECORD SHOWS THAT THESE FORMER PROCUREMENTS WERE MADE PRIOR TO THE ABOVE SURVEY. IN ANY EVENT, THE RECORDS OF THE NAVY DEPARTMENT DO SHOW THAT UPON THE BASIS OF THE INSPECTOR'S SURVEY REPORT OF MARCH 19, 1957, YOU WERE DETERMINED NOT TO BE A REGULAR DEALER IN THE TIME OF SUPPLIES OF WHICH YOU WERE THE LOW BIDDER UNDER INVITATIONS NOS. 600-40-58 AND 600-42 58, AND CONSEQUENTLY, THE AWARDS WERE MADE TO THOSE BIDDERS WHICH WERE ADMINISTRATIVELY CONSIDERED ELIGIBLE TO RECEIVE THEM.

IT MIGHT BE STATED, HOWEVER, THAT ACCORDING TO ADVICE RECEIVED FROM THE BUREAU OF SUPPLIES AND ACCOUNTS, DEPARTMENT OF THE NAVY, THE PURCHASING ACTIVITIES UNDER THE COGNIZANCE OF THAT BUREAU HAVE NOW BEEN INSTRUCTED TO DISCONTINUE USE OF THE INSPECTORS' SURVEY LIST OF APRIL 19, 1957, AND TO MAKE THEIR FUTURE "REGULAR DEALER" DETERMINATIONS UPON A CASE BY CASE BASIS, AS REQUESTED BY YOU.

IT THUS APPEARS THAT THE SITUATION WHICH GAVE RISE TO YOUR NUMEROUS COMPLAINTS AGAINST THE REJECTION OF YOUR LOW BIDS UNDER NAVY INVITATIONS HAS NOW BEEN LARGELY CORRECTED THROUGH APPROPRIATE ADMINISTRATIVE PROCESSES. IN THE CIRCUMSTANCES OF THE PARTICULAR PROCUREMENTS COMPLAINED OF, INCLUDING THE PROCUREMENT REFERRED TO IN YOUR LETTER OF JANUARY 11, 1958 (OUR FILE B-134407), WE DO NOT FEEL THAT WE WOULD NOW BE JUSTIFIED IN TAKING ANY ACTION TO CANCEL THE CONTRACTS INVOLVED.