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B-204785, MAY 5, 1982

B-204785 May 05, 1982
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DIGEST: WHERE CONVERSION COSTS WILL HAVE NO EFFECT ON OUTCOME OF PROCUREMENT. PROTEST OF PROPRIETY OF CONVERSION COSTS IS ACADEMIC AND WILL NOT BE CONSIDERED. WE DISMISS THE PROTEST BECAUSE IT IS ACADEMIC. BOEING COMPUTER SERVICES IS THE INCUMBENT VENDOR. THE RFP SETS FORTH TWO SCHEDULES OF GOVERNMENT-INCURRED CONVERSION COSTS THAT ARE TO BE APPLIED TO VENDORS OTHER THAN THE INCUMBENT IN DETERMINING TOTAL SYSTEM LIFE COST. ONE SCHEDULE (CDC-COMPATIBLE) IS TO BE APPLIED TO OFFERS PROPOSING CDC HARDWARE AND AN NOS OPERATING SYSTEM. THE OTHER SCHEDULE IS FOR NONCOMPATIBLE HARDWARE AND OPERATING SYSTEMS. AWARD IS TO BE MADE TO THE OFFEROR WHICH MEETS ALL OF THE MANDATORY REQUIREMENTS AT THE LOWEST TOTAL OVERALL COST.

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B-204785, MAY 5, 1982

DIGEST: WHERE CONVERSION COSTS WILL HAVE NO EFFECT ON OUTCOME OF PROCUREMENT, PROTEST OF PROPRIETY OF CONVERSION COSTS IS ACADEMIC AND WILL NOT BE CONSIDERED.

MARTIN MARIETTA CORPORATION:

MARTIN MARIETTA CORPORATION (MARTIN MARIETTA) PROTESTS THE CONVERSION COST EVALUATION CRITERIA SET FORTH IN REQUEST FOR PROPOSALS DACW31-81-R- 0006, FOR TELEPROCESSING SERVICES, ISSUED BY THE BALTIMORE DISTRICT OF THE UNITED STATES ARMY CORPS OF ENGINEERS.

WE DISMISS THE PROTEST BECAUSE IT IS ACADEMIC.

BOEING COMPUTER SERVICES IS THE INCUMBENT VENDOR, AND USES CONTROL DATA CORPORATION (CDC) HARDWARE AND AN NOS OPERATING SYSTEM. THE RFP SETS FORTH TWO SCHEDULES OF GOVERNMENT-INCURRED CONVERSION COSTS THAT ARE TO BE APPLIED TO VENDORS OTHER THAN THE INCUMBENT IN DETERMINING TOTAL SYSTEM LIFE COST. ONE SCHEDULE (CDC-COMPATIBLE) IS TO BE APPLIED TO OFFERS PROPOSING CDC HARDWARE AND AN NOS OPERATING SYSTEM. THE OTHER SCHEDULE IS FOR NONCOMPATIBLE HARDWARE AND OPERATING SYSTEMS. AWARD IS TO BE MADE TO THE OFFEROR WHICH MEETS ALL OF THE MANDATORY REQUIREMENTS AT THE LOWEST TOTAL OVERALL COST. FOUR OFFERORS, INCLUDING THE PROTESTER, MET THE MANDATORY REQUIREMENTS.

MARTIN MARIETTA PROPOSED A CDC-COMPATIBLE SYSTEM. MARTIN MARIETTA CONTENDS THAT THE SEVERAL MILLION DOLLARS IN CONVERSION COSTS THAT WILL BE ADDED TO ITS SYSTEM LIFE COST IS UNREALISTIC GIVEN THE SIMILARITY OF ITS PROPOSED SYSTEM TO THE INCUMBENT'S SYSTEM. THE PROTESTER ARGUES THAT THE EFFECT OF THE UNREALISTICALLY LARGE CONVERSION COSTS IS TO BIAS THE PROCUREMENT IN FAVOR OF THE INCUMBENT.

BEST AND FINAL OFFERS HAVE BEEN RECEIVED, BUT AWARD HAS NOT BEEN MADE. THE PROTESTER AND THE OTHER OFFERORS DO NOT KNOW EACH OTHERS' SYSTEM LIFE COST. HOWEVER, WE HAVE BEEN PROVIDED THE SYSTEM LIFE COSTS WITH CONVERSION COSTS SEPARATELY STATED FOR OUR IN CAMERA REVIEW. BASED ON THOSE FIGURES, WE CAN CONCLUSIVELY SAY THAT CONVERSION COSTS WILL HAVE NO EFFECT ON THE OUTCOME OF THIS PROCUREMENT. CONSEQUENTLY, MARTIN MARIETTA'S PROTEST IS ACADEMIC, AND WE WILL NOT DECIDE ACADEMIC QUESTIONS. DATA-PRODUCTS NEW ENGLAND, INC.; HONEYWELL, INC.; TRACOR AEROSPACE, B-199024, JANUARY 9, 1981, 81-1 CPD 16.

PROTEST DISMISSED.

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