Skip to main content

B-145256, AUG. 9, 1961

B-145256 Aug 09, 1961
Jump To:
Skip to Highlights

Highlights

FEDERAL AVIATION AGENCY: REFERENCE IS MADE TO LETTER DATED APRIL 11. ENCLOSED FOR YOUR INFORMATION IS A COPY OF OUR LETTER OF TODAY TO LEWIS. THAT IT IS NOT THE POLICY OF THE AIR FORCE TO INCLUDE SOLE SOURCE ITEMS IN ADVERTISED PROCUREMENT. WHEN IT IS CONVINCED THAT THERE ARE NO OTHER POTENTIAL SUPPLIERS. IN THE HOPE THAT OTHER SUPPLIERS WILL BE ABLE TO QUALIFY PRIOR TO THE DATE OF THE OPENING OF BIDS. IS ALSO ENCLOSED. AS YOU ARE PROBABLY AWARE. IS THE DEPARTMENT HAVING CENTRALIZED RESPONSIBILITY FOR THE PROCUREMENT OF ELECTRON TUBES. IT WILL BE NOTED THAT IN LEWIS AND MCDONALD'S LETTER OF FEBRUARY 7. IT IS STATED THAT GENERAL ELECTRONICS. THE LATTER FIGURE IS. AS YOU ARE NO DOUBT AWARE.

View Decision

B-145256, AUG. 9, 1961

TO ADMINISTRATOR, FEDERAL AVIATION AGENCY:

REFERENCE IS MADE TO LETTER DATED APRIL 11, 1961, FROM THE CHIEF, MATERIEL PROGRAM DIVISION, BUREAU OF FACILITIES AND MATERIEL, FAA, FURNISHING A REPORT ON THE PROTEST OF GENERAL ELECTRONICS, INC., AGAINST THE AWARD OF ITEM NO. 314 (ELECTRON TUBE TYPE 4-65A) TO EITEL MCCULLOUGH, INC. (EIMAC), UNDER INVITATION FOR BIDS NO. 115-3-70, ISSUED BY THE AERONAUTICAL CENTER AT OKLAHOMA CITY, OKLAHOMA.

ENCLOSED FOR YOUR INFORMATION IS A COPY OF OUR LETTER OF TODAY TO LEWIS, MACDONALD AND VARIAN, ATTORNEYS FOR THE PROTESTANT, WITH REFERENCE TO THE MATTER, ATTENTION BEING INVITED TO THE NEXT-TO-LAST PARAGRAPH OF THE LETTER. IN THIS CONNECTION, THE DEPARTMENT OF THE AIR FORCE, OFFICE OF THE ASSISTANT SECRETARY, IN REPORTING TO US IN REGARD TO A PROTEST FILED HERE BY MICROWAVE ELECTRONIC TUBE COMPANY, INC., AGAINST THE AWARD OF CONTRACT AF 33/604/-30074 TO BOMAC LABORATORIES, INC., UNDER INVITATION FOR BIDS 33-604-60-752, ISSUED BY DAYTON AIR FORCE DEPOT, GENTILE AIR FORCE STATION, DAYTON, OHIO, STATED IN A LETTER DATED NOVEMBER 18, 1960, THAT IT IS NOT THE POLICY OF THE AIR FORCE TO INCLUDE SOLE SOURCE ITEMS IN ADVERTISED PROCUREMENT, WHEN IT IS CONVINCED THAT THERE ARE NO OTHER POTENTIAL SUPPLIERS, IN THE HOPE THAT OTHER SUPPLIERS WILL BE ABLE TO QUALIFY PRIOR TO THE DATE OF THE OPENING OF BIDS. A COPY OF OUR DECISION B 143405, DATED MARCH 23, 1961, TO WILLIAM C. TAYLOE, ESQUIRE, WASHINGTON, D.C., WITH REFERENCE TO METCO'S PROTEST IN THE CASE, IS ALSO ENCLOSED, INVITING YOUR ATTENTION TO THE LAST PARAGRAPH OF THE DECISION.

THE DEPARTMENT OF THE AIR FORCE, AS YOU ARE PROBABLY AWARE, IS THE DEPARTMENT HAVING CENTRALIZED RESPONSIBILITY FOR THE PROCUREMENT OF ELECTRON TUBES, TRANSISTORS AND RECTIFYING CRYSTALS WITHIN THE DEPARTMENT OF DEFENSE UNDER DEFENSE INSTRUCTION NO. 4115.1 (ATT 1 TO INCL 1), DATED APRIL 12, 1961, AND WE NOTE THAT DAYTON AIR FORCE DEPOT, GENTILE AIR FORCE STATION, IN PUBLICIZING TO THE INDUSTRY IN APRIL, 1960, THE ESTIMATED ELECTRON TUBE REQUIREMENTS OF THE DEPARTMENT OF DEFENSE FOR THE FISCAL YEAR 1961, ESTIMATED THAT A TOTAL QUANTITY OF 20,728 ELECTRON TUBES TYPE 4 -65A WOULD BE REQUIRED. IT WILL BE NOTED THAT IN LEWIS AND MCDONALD'S LETTER OF FEBRUARY 7, 1961, TO THE FEDERAL AVIATION AGENCY, FACILITIES AND MATERIEL DEPOT, GENERAL MATERIEL PURCHASING SECTION (FM-996), OKLAHOMA CITY, OKLAHOMA, PROTESTING AGAINST AN AWARD UNDER THE INVITATION INVOLVED TO ANY BIDDER OTHER THAN GENERAL ELECTRONICS, INC., IT IS STATED THAT GENERAL ELECTRONICS, INC., HAD BEEN AWARDED A CONTRACT BY THE DEPARTMENT OF THE AIR FORCE FOR 4300 TYPE 4-65A TUBES UNDER IFB NO. 33-604-61-437, AND THAT PRODUCTION OF AN ADDITIONAL 6,000 UNITS FOR FAA UNDER THE LATTER'S INVITATION WOULD BE MERELY "MORE OF THE SAME," AT A SAVING TO THE GOVERNMENT OF $12,000. THE LATTER FIGURE IS, OF COURSE, BASED UPON THE DIFFERENCE BETWEEN EIMAC'S BID OF $17.92 PER UNIT AND THE UNIT PRICE OF $15.90 BID BY GENERAL ELECTRONICS UNDER THE INSTANT INVITATION, AND THE ESTIMATED QUANTITY OF TUBES WHICH WOULD BE REQUIRED TO BE FURNISHED THEREUNDER.

AS YOU ARE NO DOUBT AWARE, SECTION 601 OF THE ACT APPROVED JUNE 30, 1932, 47 STAT. 382, 417, REFERRED TO AS THE ECONOMY ACT OF JUNE 30, 1932, AS AMENDED (31 U.S.C. 686 (A) (, PROVIDES THAT ANY EXECUTIVE DEPARTMENT OR INDEPENDENT ESTABLISHMENT OF THE GOVERNMENT, OR ANY BUREAU OR OFFICE THEREOF, IF FUNDS ARE AVAILABLE THEREFOR AND IF IT IS DETERMINED BY THE HEAD OF SUCH EXECUTIVE DEPARTMENT, ESTABLISHMENT, BUREAU, OR OFFICE TO BE IN THE INTEREST OF THE GOVERNMENT SO TO DO, MAY PLACE ORDERS WITH ANY OTHER SUCH DEPARTMENT, ESTABLISHMENT, BUREAU, OR OFFICE FOR MATERIALS, SUPPLIES, EQUIPMENT, WORK, OR SERVICES, OF ANY KIND THAT SUCH REQUISITIONED FEDERAL AGENCY MAY BE IN A POSITION TO SUPPLY OR EQUIPPED TO RENDER, AND SHALL PAY PROMPTLY BY CHECK TO SUCH FEDERAL AGENCY AS MAY BE REQUISITIONED, UPON ITS WRITTEN REQUEST, EITHER IN ADVANCE OR UPON THE FURNISHING OR PERFORMANCE THEREOF, ALL OR PART OF THE ESTIMATED OR ACTUAL COST THEREOF AS DETERMINED BY SUCH DEPARTMENT, ESTABLISHMENT, BUREAU, OR OFFICE AS MAY BE REQUISITIONED; BUT THAT PROPER ADJUSTMENTS ON THE BASIS OF THE ACTUAL COST OF THE MATERIALS, SUPPLIES, OR EQUIPMENT FURNISHED, OR WORK OR SERVICES PERFORMED, PAID FOR IN ADVANCE, SHALL BE MADE AS MAY BE AGREED UPON BY THE DEPARTMENTS, ESTABLISHMENTS, BUREAUS, OR OFFICES CONCERNED. IT IS FURTHER PROVIDED THEREIN THAT THE DEPARTMENT OF THE ARMY, NAVY DEPARTMENT, TREASURY DEPARTMENT, FEDERAL AVIATION AGENCY AND THE MARITIME COMMISSION MAY PLACE ORDERS, AS PROVIDED FOR BY THE STATUTE, FOR MATERIALS, SUPPLIES, EQUIPMENT, WORK, OR SERVICES, OF ANY KIND THAT ANY REQUISITIONED FEDERAL AGENCY MAY BE IN A POSITION TO SUPPLY, OR TO RENDER OR TO OBTAIN BY CONTRACT.

THE ABOVE STATUTORY PROVISIONS ARE IMPLEMENTED BY SECTION 5-701 OF THE ARMED SERVICES PROCUREMENT REGULATION, EFFECTIVE JULY 1, 1960, AS FOLLOWS:

"5-701 AUTHORIZATION AND POLICY RELATING TO PLACING AND FILLING ORDERS.

"/B) EACH PROCURING ACTIVITY, WHEN IT IS IN THE INTEREST OF THE GOVERNMENT TO DO SO, MAY PLACE DELIVERY ORDERS, ON DD FORM 1155 (SEE 16- 303), WITH ANY OTHER GOVERNMENT DEPARTMENT OR AGENCY FOR SUPPLIES OR SERVICES THAT ANY SUCH REQUISITIONED DEPARTMENT OR AGENCY MAY BE IN A POSITION TO FURNISH OR PERFORM OR TO OBTAIN BY CONTRACT. GENERALLY, AN ORDER FOR SUPPLIES OR SERVICES WILL NOT BE PLACED WITH A DEPARTMENT OR AGENCY WHICH IS NOT IN A POSITION TO FURNISH THE SUPPLIES OR IS NOT EQUIPPED TO PERFORM THE SERVICES, EXCEPT THAT AN ORDER MAY BE FILLED BY MEANS OF AN OUTSIDE CONTRACT WITH A COMMERCIAL SOURCE OF SUPPLY IF THE ORDER IS PLACED BY ANY ONE OF THE FOLLOWING: DEPARTMENT OF THE ARMY, DEPARTMENT OF THE NAVY, DEPARTMENT OF THE AIR FORCE, DEPARTMENT OF THE TREASURY, CIVIL AERONAUTICS ADMINISTRATION, OR MARITIME COMMISSION. * *

SINCE THE FEDERAL AVIATION AGENCY WAS SUBSTITUTED FOR THE CIVIL AERONAUTICS ADMINISTRATION AS ONE OF THE AGENCIES FOR WHICH A REQUISITIONED FEDERAL AGENCY IS AUTHORIZED UNDER THE ABOVE STATUTORY AUTHORITY TO OBTAIN MATERIALS, SUPPLIES, EQUIPMENT, WORK, OR SERVICES BY CONTRACT BY SECTION 1407 OF THE FEDERAL AVIATION ACT OF 1958, 72 STAT. 808, IT IS OBVIOUS THAT THE INCLUSION OF THE PHRASE "CIVIL AERONAUTICS ADMINISTRATION," RATHER THAN "FEDERAL AVIATION AGENCY," IN THE ABOVE REGULATION WAS AN INADVERTENCE.

THE DEPARTMENT OF THE AIR FORCE, AS THE DEPARTMENT RESPONSIBLE FOR PROCURING ELECTRON TUBES, TRANSISTORS AND RECTIFYING CRYSTALS FOR ALL THE DEPARTMENTS UNDER THE DEPARTMENT OF DEFENSE, HAS THE RESPONSIBILITY UNDER SECTION 5-1102 OF THE ARMED SERVICES PROCUREMENT REGULATION OF "PHASING THE SUBMISSION OF REQUIREMENTS, CONSOLIDATING OR DIVIDING REQUIREMENTS, ANALYZING THE MARKET, AND DETERMINING PATTERNS FOR THE PHASED PLACEMENT OF ORDERS IN SUCH A MANNER AS TO ASSURE MEETING THE NEEDS OF THE MILITARY DEPARTMENTS AT THE LOWEST PRICE TO THE GOVERNMENT, AND AT THE SAME TIME AVOIDING UNNECESSARY PEAKS AND VALLEYS OF PRODUCTION," AND "ARRANGEMENT FOR INSPECTION," AMONG OTHER THINGS.

INASMUCH AS THE DEPARTMENT OF THE AIR FORCE, AS THE CENTRALIZED PROCUREMENT AGENCY FOR ELECTRON TUBES, TRANSISTORS AND RECTIFYING CRYSTALS WITHIN THE DEPARTMENT OF DEFENSE, WOULD APPEAR TO BE IN POSITION TO OBTAIN THE BROADEST COMPETITION WITHIN THE INDUSTRY FOR FURNISHING PRODUCTS OF THE TYPE INVOLVED TO THE GOVERNMENT, AND SINCE YOUR AGENCY HAS EXPRESSED A PREFERENCE FOR PRODUCTS CONFORMING TO MILITARY SPECIFICATIONS AND APPEARING ON THE MILITARY QUALIFIED PRODUCTS LIST, IT WOULD APPEAR WORTHWHILE FOR FAA, IN THE INTEREST OF CONVENIENCE AND ECONOMY, TO GIVE SERIOUS CONSIDERATION TO OBTAINING ITS REQUIREMENTS FOR PRODUCTS OF THE TYPE HERE INVOLVED THROUGH THE DEPARTMENT OF THE AIR FORCE.

THE ABOVE SUGGESTION IS MADE IN THE INTEREST WHICH WE ALL HAVE IN OBTAINING GOODS AND SERVICES FOR THE GOVERNMENT AS ECONOMICALLY AS POSSIBLE, AND WE SHALL APPRECIATE YOUR COMMENTS ON THE SUGGESTION WHEN YOU HAVE HAD A CHANCE TO STUDY IT. ..END :

GAO Contacts

Office of Public Affairs