B-176385, DEC 11, 1972

B-176385, DEC 11, 1972

BID PROTEST - MULTIPLE-SOURCE FEDERAL SUPPLY SCHEDULE DECISION DENYING THE PROTEST OF OLIVETTI CORPORATION OF AMERICA, AGAINST THE SELECTION BY THE AIR FORCE ACCOUNTING AND FINANCE CENTER, DENVER, COL. OF A COMPETITOR FROM THE MULTIPLE-SOURCE FEDERAL SUPPLY SCHEDULE FOR ELECTRIC TYPEWRITERS. UNDER PARAGRAPH 5-106, ASPR, AND SECTION 101-26.408-3 OF THE FEDERAL PROPERTY MANAGEMENT REGULATIONS, PURCHASERS OF EQUIPMENT FROM THE MULTIPLE -SOURCE FEDERAL SUPPLY SCHEDULE ARE AUTHORIZED TO TAKE INTO CONSIDERATION THE ADMINISTRATIVE EXPENSE AND COST OF MAINTENANCE ASSOCIATED WITH THE POSSIBLE SELECTION OF A LOWER COST ITEM FROM THE SCHEDULE.

TO OLIVETTI CORPORATION:

REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 13, 1972, AND PRIOR CORRESPONDENCE, PROTESTING THAT THE AIR FORCE ACCOUNTING & FINANCE CENTER (AFAFC), DENVER, COLORADO, SELECTED A COMPETITOR OVER YOUR FIRM FOR AN ORDER OF 27 ELECTRIC TYPEWRITERS, LESS TRADE-IN ALLOWANCE, FROM MULTIPLE- SOURCE FEDERAL SUPPLY SCHEDULE, GROUP 74, PART 1.

A COPY OF THE AIR FORCE REPORT IN THIS REGARD WAS FURNISHED TO YOU FOR COMMENT. YOU HAVE STATED THAT AMONG THE REASONS ADVANCED BY AFAFC FOR NOT SELECTING THE OLIVETTI EQUIPMENT FROM THE FEDERAL SUPPLY SCHEDULE WAS THAT IT CONSIDERED THE EXPENSE OF TRAINING TECHNICAL PERSONNEL TO REPAIR OLIVETTI EQUIPMENT AS OVERCOMING ANY SAVINGS RESULTING FROM SUCH PURCHASE. YOU HAVE INDICATED THAT, IF AFAFC IS NOT WILLING TO BEAR THE COST OF TRAINING TECHNICAL PERSONNEL TO REPAIR OLIVETTI TYPEWRITERS, THE COMPANY CANNOT EXPECT TO BE SUCCESSFUL IN OBTAINING ORDERS. FURTHER, YOU HAVE STATED THAT THE PRICES FOR OLIVETTI HEAVY-DUTY TYPEWRITERS SHOULD BE COMPARED WITH THE PRICES OF SIMILAR COMPETITOR TYPEWRITERS IN MAKING THE SELECTION AND YOU CONTEND THAT SUCH COMPARISON WAS NOT MADE IN THIS CASE.

HOWEVER, OUR REVIEW OF THE RECORD INDICATES THAT THE REASON THE OLIVETTI EDITOR 3 TYPEWRITER WAS NOT SELECTED WAS THAT IT WAS CONSIDERED TO BE A LIGHT-DUTY TYPEWRITER AND SUBSTANTIALLY THE SAME AS THE EDITOR 2 TYPEWRITER WITH WHICH AFAFC HAS EXPERIENCED SERVICE PROBLEMS. IN VIEW OF THESE FACTORS AND THE EXPENSE THAT WOULD BE INCURRED IN TRAINING TECHNICAL PERSONNEL TO REPAIR SUCH TYPEWRITERS, AFAFC DECIDED AGAINST CONSIDERING THE EDITOR 3 TYPEWRITER AND CHOSE INSTEAD TO CONSIDER THE EDITOR 4 MODEL. BECAUSE THE LATTER MODEL WAS MORE EXPENSIVE THAN THE MODELS OF COMPETITORS, IT WAS NOT SELECTED.

UNDER PARAGRAPH 5-106 OF THE ARMED SERVICES PROCUREMENT REGULATION AND SECTION 101-26.408-3 OF THE FEDERAL PROPERTY MANAGEMENT REGULATIONS, PURCHASERS OF EQUIPMENT FROM THE MULTIPLE-SOURCE FEDERAL SUPPLY SCHEDULE ARE AUTHORIZED TO TAKE INTO CONSIDERATION THE ADMINISTRATIVE EXPENSE AND COST OF MAINTENANCE ASSOCIATED WITH THE POSSIBLE SELECTION OF A LOWER COST ITEM FROM THE SCHEDULE. THE PURCHASE IN THIS CASE WAS IN TECHNICAL COMPLIANCE WITH THE CITED REGULATIONS. MOREOVER, YOU HAVE NOT FURNISHED ANYTHING THAT ESTABLISHES THAT THE MODELS WITH WHICH THE EDITOR 4 WAS COMPARED WERE NOT HEAVY-DUTY MACHINES AS YOU CONTEND.

ACCORDINGLY, THE PROTEST IS DENIED.