B-147783, JAN. 25, 1962

B-147783, JAN. 25, 1962

TO DEL MAR ENGINEERING LABORATORIES:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 11, 1961, WITH ENCLOSURES, PROTESTING THE AWARD OF ANY CONTRACT UNDER REQUEST FOR QUOTATIONS NO. 76Q, DATED NOVEMBER 21, 1961, ISSUED BY THE UNITED STATES NAVAL AIR DEVELOPMENT CENTER, JOHNSVILLE, PENNSYLVANIA.

THE RECORD FURNISHED TO THIS OFFICE SHOWS THAT UNDER THE CITED REQUEST FOR QUOTATIONS IT IS ADMINISTRATIVELY PROPOSED TO NEGOTIATE A CONTRACT ON A SOLE SOURCE BASIS WITH ACCO EQUIPMENT DIVISION, AMERICAN CHAIN AND CABLE CO., INC., YORK, PENNSYLVANIA, FOR THE CONTINUED DEVELOPMENT BY THAT FIRM OF A REWIND STAND CAPABLE OF PROVIDING REWIND SERVICING FOR THE AERO 45 AND AERO 43 TOW REELS. IN ORDER THAT YOU MIGHT BE FULLY APPRISED OF THE ADMINISTRATIVE JUSTIFICATION FOR THE PROCUREMENT AS PROPOSED, INCLUDING THE BASIS FOR ITS DENIAL OF YOUR REQUEST, IN EFFECT, FOR AN OPPORTUNITY TO PARTICIPATE IN THE NEGOTIATION PROCEEDINGS, THERE ARE QUOTED BELOW PERTINENT EXTRACTS FROM THE REPORT SUBMITTED IN THIS MATTER BY THE CONTRACTING OFFICER:

"DETAILED INFORMATION ON NADC RFQ NO. 76Q

"1. ON 21 NOVEMBER 1961, NADC REQUEST FOR QUOTATION NO. 76Q WAS ISSUED FOR "SERVICES AND MATERIAL NECESSARY TO MANUFACTURE AND FURNISH A REWIND STAND CAPABLE OF PROVIDING REWIND SERVICING FOR THE AERO 45 AND AERO 43 TOW REELS.' THE RFQ WENT ON TO SAY THAT IT SHOULD BE SIMILAR TO THAT SUPPLIED UNDER CONTRACT N62269-1346 BUT SHOULD INCLUDE EIGHTEEN MODIFICATIONS WHICH WERE LISTED. THE RFQ ALSO CALLED FOR FINAL MANUFACTURING DRAWINGS IN ACCORDANCE WITH SPECIFICATION MIL-D 70327, CLASS I. THESE DRAWINGS WERE BEING PROCURED TO PERMIT COMPETITION ON FUTURE PROCUREMENTS.

"2. BACKGROUND INFORMATION. NADC CONTRACT N62269-1330 DATED 4 MAY 1961 WITH ACCO EQUIPMENT DIVISION, AMERICAN CHAIN AND CABLE CO., INC. CALLED FOR ONE (1) AERO 46 REWIND STAND LESS A SPOOL DRIVE BRAKE AND TOW TARGET DRIVE AND BRAKE. ALSO, DRAWINGS IN ACCORDANCE WITH MIL-D 70327-1. NADC CONTRACT N62269-1346 WITH ACCO, DATED 17 MAY 1961, CALLED FOR DESIGN AND FABRICATION OF ONE (1) MODIFIED AERO 46 REWIND STAND FOR USE WITH AERO 45. THIS CONTRACT ALSO CALLED FOR DRAWINGS IN ACCORDANCE WITH MIL-D-70327 -1. BOTH STANDS WERE PROCURED TO PROVIDE TOWLINE REWIND CAPABILITY FOR THE AERO 45 REEL LAUNCHER UNDER AN R AND D PROJECT FOR SUPERSONIC TOW TARGET SYSTEM FOR F4H-1 AIRCRAFT. WHEN THE PRESENT PROCUREMENT (RFQ 76Q) ARRIVED IN THE PURCHASE DIVISION, THE ENGINEERING DEVELOPMENT LABORATORY, THE ORIGINATOR OF THE PROCUREMENT, WAS CONTACTED FOR DRAWINGS WHICH WOULD PERMIT SOLICITATION OF COMPETITIVE BIDS. THE EDL JUSTIFIED, TO THE SATISFACTION OF THE CONTRACTING OFFICER, A SOLE SOURCE PROCUREMENT FROM ACCO. DRAWINGS TO BE FURNISHED UNDER CONTRACT N62269-1330 HAVE NOT AS YET BEEN DELIVERED INASMUCH AS ACCO HAS A CONTRACT WITH BUWEPS FOR A QUANTITY OF THE STANDARD AERO 46 REWIND STAND WITH DRAWINGS, AND THE DRAWINGS TO BE FURNISHED UNDER N62269-1330 ARE TO BE REPRODUCED FROM THE DRAWINGS FURNISHED UNDER THE BUWEPS CONTRACT.

THE DRAWINGS TO BE FURNISHED UNDER THE BUWEPS CONTRACT AND CONTRACT N62269-1330 WILL NOT BE AVAILABLE FOR SEVERAL MONTHS. DRAWINGS UNDER CONTRACT N62269-1346 WERE TO COVER THE MODIFICATIONS MADE BY THAT CONTRACT. THE REQUIREMENT FOR THESE DRAWINGS HAS BEEN REMOVED FROM THE CONTRACT BY A NO COST CANCELLATION AGREEMENT INASMUCH AS THE MODIFICATIONS THEY WERE TO COVER ARE TO BE FURTHER MODIFIED UNDER THE PRESENT PROCUREMENT (RFQ-76Q). SINCE THERE ARE NO DETAIL DRAWINGS AVAILABLE AND THIS PROCUREMENT IS CONSIDERED TO BE A CONTINUATION OF DEVELOPMENT OF A SUITABLE REWIND STAND, THE DECISION TO NEGOTIATE UNDER 10 U.S.C. 2304 (A) (1) EXCLUSIVELY WITH ACCO WAS CONSIDERED JUSTIFIED.

"3. IN COMPLIANCE WITH REGULATIONS THE RFQ WAS PUBLICIZED IN ISSUE NO. PSA-2929 DATED 22 NOV 1961 OF THE COMMERCE BUSINESS DAILY AS FOLLOWS:

"COMPLETE DATA NOT AVAILABLE. THERE ARE NO SPECS OR DRAWINGS AVAILABLE WHICH DESCRIBE NECESSARY MANUFACTURING DETAILS OF ITEM LISTED BELOW.

"AERO 46 REWIND TRUCK, 1 EACH--- RFQ76Q--- DUE DATE 8 DEC 1961. REQUEST FOR QUOTATION HAS BEEN ISSUED TO ACCO EQUIPMENT DIV., AMERICAN CHAIN AND CABLE CO., INC., YORK, PA. IT IS SUGGESTED THAT SMALL BUSINESS FIRMS OR OTHERS INTERESTED IN SUBCONTRACTING OPPORTUNITIES IN CONNECTION WITH THIS PROCUREMENT, MAKE DIRECT CONTACT WITH THE ABOVE FIRM.'

"ON 4 DECEMBER THE WASHINGTON REPRESENTATIVE OF DEL MAR ENGINEERING LABORATORIES CALLED THE NEGOTIATOR AND REQUESTED A COPY OF THE RFQ. WAS EXPLAINED THAT THIS WAS A PROPRIETARY PROCUREMENT AND ANY CONTACT SHOULD BE WITH ACCO FOR SUBCONTRACTING PURPOSES. THE DEL MAR REPRESENTATIVE INSISTED THAT HE BE GIVEN A COPY OF THE RFQ AND SINCE THIS WAS NOT CONSIDERED TO BE PREJUDICIAL TO ANYONE, THE RFQ WAS MAILED TO THE DEL MAR WASHINGTON OFFICE. ON 5 DECEMBER THE DEL MAR WASHINGTON REPRESENTATIVE CALLED AND ASKED FOR AN EXTENSION IN THE OPENING DATE. THIS REQUEST WAS DENIED. IT WAS DETERMINED THAT AN EXTENSION WOULD SERVE NO PURPOSE. SINCE THE CONTRACT WAS TO BE NEGOTIATED WITH ACCO ANY EXTENSION WOULD ONLY SERVE TO UNNECESSARILY DELAY THE PROCUREMENT. ON 6 DECEMBER A TELEGRAM WAS RECEIVED FROM DEL MAR FORMALLY PROTESTING IF THE OPENING DATE WAS NOT EXTENDED. ON 7 DECEMBER A TELEGRAM WAS SENT TO DEL MAR DENYING THE EXTENSION REQUESTED.

"4. WITH REFERENCE TO THE DEL MAR REQUEST THAT RFQ 76Q BE WITHDRAWN AND REINITIATED IN ACCORDANCE WITH THE PROCEDURES IN ASPR 2 501, 2-502 AND 2- 503, THIS IS NOT CONSIDERED NECESSARY. THE TWO-STEP FORMAL ADVERTISING METHOD OF PROCUREMENT IS NOT CONSIDERED APPLICABLE IN THIS CASE. THIS IS A CONTINUATION OF DEVELOPMENT OF EQUIPMENT NECESSARY TO SUPPORT DEVELOPMENT TESTING OF REEL-LAUNCHERS,AND A CHANGE IN CONTRACTORS IS NOT CONSIDERED FEASIBLE AT THIS TIME. SINCE NADC HAS ONLY ONE UNIT OF THE MODIFIED STAND RECEIVED UNDER CONTRACT N62269 1346 ("TAKE-OFF" POINT FOR THE DEVELOPMENT CONTEMPLATED BY THE PRESENT RFQ), WHICH UNIT THE NADC IS USING IN ITS OWN DEVELOPMENT WORK, AND CONSEQUENTLY CANNOT MAKE AVAILABLE TO THE RESULTING CONTRACTOR, IT IS CONSIDERED THAT FURTHER DEVELOPMENTS OF THE STAND CAN ONLY BE ACCOMPLISHED BY ACCO, THE MANUFACTURER OF THE STANDS ACQUIRED UNDER CONTRACT N62269-1330 AND THE DEVELOPER OF THE MODIFIED STAND RECEIVED UNDER CONTRACT N62269-1346.

"5. UPON COMPLETION OF DEVELOPMENT OF THIS REWIND STAND, AND RECEIPT OF DRAWINGS, COMPETITIVE BIDS WILL BE SOLICITED ON FUTURE PROCUREMENTS.'

BASED ON THE REPORTED FACTS, IT THUS APPEARS THAT THE PROPOSED PROCUREMENT IS NOT FOR ANY QUANTITY PRODUCTION BUT IS A CONTINUATION OF AN ADMINISTRATIVE PROGRAM FOR THE DEVELOPMENT OF AN ACCEPTABLE REWIND STAND; THAT DETAIL DRAWINGS ARE NOT AS YET AVAILABLE FOR PROCUREMENT OF THE STAND ON A COMPETITIVE BASIS; AND THAT UPON COMPLETION OF THIS DEVELOPMENT PROGRAM COMPETITIVE BIDS WILL BE SOLICITED ON FUTURE PROCUREMENTS. UNDER THE CIRCUMSTANCES, ASIDE FROM THE BROAD DISCRETIONARY AUTHORITY VESTED IN ADMINISTRATIVE OFFICIALS FOR THE NEGOTIATION OF CONTRACTS UNDER 10 U.S.C. 2304 (A), THERE APPEARS ADEQUATE JUSTIFICATION IN THIS CASE TO SUPPORT THE ADMINISTRATIVE CONCLUSION THAT NEGOTIATION WITH ACCO ON A SOLE SOURCE BASIS IS NECESSARY IN THE PUBLIC INTEREST. ACCORDINGLY, YOUR PROTEST MUST BE DENIED.