B-149430, JUL. 15, 1963

B-149430, JUL. 15, 1963

TO BRO-DART INDUSTRIES:

REFERENCE IS MADE TO YOUR LETTER DATED JULY 10, 1962, AND SUBSEQUENT CORRESPONDENCE PROTESTING AGAINST VARIOUS PROCEDURES FOLLOWED BY THE UNITED STATES INFORMATION AGENCY IN THE PROCUREMENT OF LIBRARY FURNITURE, EQUIPMENT, AND SUPPLIES.

WITH RESPECT TO YOUR CONTENTION THAT YOU WERE NOT COMPENSATED FOR LOSS OF MATERIALS IN PARTIAL STAGES OF PRODUCTION, OUR REVIEW OF THE RECORDS SHOWS THAT PURCHASE ORDER 12583-37-60 DATED JUNE 29, 1960, COVERING 16 ITEMS IN THE AMOUNT OF $1,918, CALLED FOR DELIVERY ON OR BEFORE AUGUST 29, 1960, BUT THAT BY CONVERSATION ON SEPTEMBER 6, 1960, AND BY LETTER OF SEPTEMBER 8, 1960, YOU REQUESTED CLARIFICATION OF THE ORDER. BY REPLY DATED SEPTEMBER 27, 1960, THE AGENCY CLARIFIED THE POINTS IN QUESTION. THE FINAL SENTENCE OF THE LETTER OF SEPTEMBER 27, 1960, STATED,"KINDLY EXPEDITE COMPLETION AND DELIVERY OF THESE ORDERS AS SOON AS POSSIBLE.' OCTOBER 5, 1960, AN AMENDMENT WAS ISSUED CANCELLING THE ORIGINAL ORDER BECAUSE OF NONDELIVERY WITHIN THE PRESCRIBED PERIOD. IN THE ABSENCE OF ANY APPEAL BY YOU FROM THE TERMINATION ACTION, THERE WOULD APPEAR TO BE NO BASIS UPON WHICH PAYMENT COULD NOW BE MADE TO YOUR COMPANY FOR WORK IN PROGRESS AT THE TIME OF CANCELLATION.

ALTHOUGH YOU CONTEND THAT THE ONLY CRITICISM RECEIVED FROM USIA WAS LATE DELIVERY ON SOME ORDERS, USIA OFFICIALS STRONGLY EMPHASIZED TO US THAT THEY ALSO HAD A MAJOR PROBLEM WITH RESPECT TO INFERIOR CONSTRUCTION, FINISH, AND COLORING OF YOUR FURNITURE. WE WERE ADVISED THAT THESE PROBLEMS WERE BROUGHT TO YOUR ATTENTION ON SEVERAL OCCASIONS AT MEETING WITH AGENCY OFFICIALS, WHICH OFFICIALS OF YOUR COMPANY REPORTEDLY ASSURED THE AGENCY THAT FUTURE ORDERS WOULD RECEIVE SPECIAL ATTENTION TO ASSURE A QUALITY PRODUCT.

WHILE THE AGENCY'S RECORDS OFFER A MINIMUM OF SUPPORT FOR STATEMENTS CONCERNING INFERIOR QUALITY OF YOUR FURNITURE, IT WAS STATED THAT THE TIME DELAY BETWEEN THE PLACING OF REQUESTS BY POSTS AND ULTIMATE DELIVERY OF THE ITEMS, AND THE RELUCTANCE OF POST OFFICIALS TO COMPLAIN TO WASHINGTON ABOUT THE QUALITY OF EQUIPMENT FINALLY RECEIVED, ARE FACTORS WHICH ACCOUNT FOR THE SMALL AMOUNT OF DOCUMENTATION. OFFICIALS IN THE REQUISITIONING OFFICE STATED THAT OVERSEAS PERSONNEL WHO HAVE VISITED THEIR OFFICES WHILE IN THE UNITED STATES FOR CONSULTATION HAVE CONSISTENTLY REMARKED ABOUT THE LOWER QUALITY OF THE BRO-DART FURNITURE, AND THAT VISITS TO THE POSTS HAVE ALSO SUPPORTED CONTENTIONS THAT BRO-DART FURNITURE HAS IN MANY INSTANCES, BEEN OF INFERIOR CONSTRUCTION, FINISH, OR COLORING.

WITH RESPECT TO LATE DELIVERIES THE ADMINISTRATIVE RECORDS SHOW THAT YOUR RECORD FOR MEETING SCHEDULED DELIVERY DATES HAS BEEN FAR FROM SATISFACTORY. AN AGENCY TABULATION OF ALL BRO-DART ORDERS FOR THE PERIOD MARCH 1959 THROUGH MARCH 1960 SHOWS THAT YOU MET SCHEDULED DELIVERIES (NORMALLY 60 DAYS) ON ONLY 10 OF 64 ORDERS AND THAT DELINQUENCIES FOR 11 OF THESE ORDERS EXCEEDED 31 DAYS. COMPARABLE STATISTICS FOR REMINGTON RAND DELIVERIES SHOWED 23 TIMELY DELIVERIES OUT OF 39 ORDERS, WITH THREE ORDERS DELINQUENT OVER 31 DAYS. THE ADMINISTRATIVE RECORDS SHOW THAT BOTH COMPANIES HAVE HAD DELINQUENCIES CALLED TO THEIR ATTENTION.

WE FOUND NO AGENCY RECORDS TO SUPPORT THE CONTENTION THAT YOU HAVE REPEATEDLY ASKED FOR BID INVITATIONS SINCE 1960, AND THAT YOU HAVE BEEN INFORMED EACH TIME THAT THERE HAVE BEEN PRACTICALLY NO FURNITURE REQUIREMENTS BY THE AGENCY LIBRARIES. FOR YOUR INFORMATION, OUR REVIEW INDICATED FURNITURE PURCHASES OF ABOUT $189,000 DURING 1961 AND 1962, OF WHICH ABOUT $105,000 WAS FOR FURNITURE OF METAL CONSTRUCTION.

WITH RESPECT TO THE OTHER MATTERS RAISED IN YOUR LETTERS OF PROTEST, OUR REVIEW INDICATES THAT THE PRACTICES OF THE U.S.I.A. IN CERTAIN PROCUREMENT AREAS HAVE BEEN DEFICIENT, AND WE ARE TODAY SENDING A LETTER TO THE DIRECTOR SETTING OUT SUCH DEFICIENCIES AND RECOMMENDING THEIR CORRECTION IN FUTURE PROCUREMENTS. THESE MATTERS WILL RECEIVE ADDITIONAL CONSIDERATION DURING THE COURSE OF OUR REGULAR AUDIT OF THE AGENCY'S OPERATIONS.