B-150438, MAR. 7, 1963

B-150438, MAR. 7, 1963

TO THE ALLIED AIRCRAFT SALES:

IN YOUR TELEGRAM OF DECEMBER 10, 1962, AND YOUR LETTER OF DECEMBER 17, 1962, YOU PROTEST THE AWARD OF A CONTRACT UNDER INVITATION FOR BIDS 49-S- 63-10, ISSUED BY THE DEFENSE SURPLUS SALES OFFICE AT DAVIS MONTHANAIR FORCE BASE, ARIZONA, FOR THE SALE OF 254 AIRCRAFT CARCASSES, ON THE GROUND THAT THE INVITATION REQUIRED THE SUCCESSFUL BIDDER TO PAY THE ENTIRE CONTRACT PRICE PRIOR TO REMOVAL OF ANY OF THE CARCASSES.

THE DEFENSE SUPPLY AGENCY HAS REPORTED THAT THE INVITATION FOR BIDS HAS BEEN CANCELED AND THAT NO AWARD WAS MADE THEREUNDER. SINCE THE RELIEF YOU REQUESTED HAS BEEN GRANTED, IT APPEARS THAT YOUR PROTEST HAS BECOME MOOT. HOWEVER, THE ADMINISTRATIVE REPORT STATES THAT THE PRACTICE OF USING PARTIAL PAYMENT PROVISIONS IN THE INVITATION HAS, ON OCCASION, RESULTED IN THE GOVERNMENT SUSTAINING MONETARY LOSSES BECAUSE OF ITS INABILITY TO COLLECT AMOUNTS DUE FOR PROPERTY ALREADY REMOVED. FURTHERMORE, THE NUMBER OF BIDS RECEIVED AND THE PRICES OFFERED FOR THIS SALE, AS WELL AS THE HISTORY OF THESE SALES, OFFER NO INDICATION THAT THE NEW PAYMENT REQUIREMENT ADVERSELY AFFECTED EITHER COMPETITION OR PRICES. THE FIRM WHICH YOU ALLEGE CONTROL THESE SALES WAS NOT HIGH BIDDER IN THE PRESENT PROCUREMENT, NOR DOES IT APPEAR TO HAVE DOMINATED PAST SALES. NONETHELESS, THE DEFENSE LOGISTICS SERVICES CENTER REPORTS THAT IT HAS DECIDED TO REVIEW ITS PROCEDURE AND ATTEMPT TO DEVELOP A SYSTEM FOR SELLING SUBSTANTIAL QUANTITIES OF AIRCRAFT WHICH WILL BOTH PROTECT THE GOVERNMENT FROM CONTRACTOR DEFAULTS AND YET PERMIT CONTRACTORS TO PAY FOR THE AIRCRAFT BY INCREMENTS. THE CENTER ALSO STATES THAT IT WILL REVIEW YOUR ALLEGATIONS REGARDING THE QUANTITY OF AIRCRAFT OFFERED FOR SALE, THE USE OF PORTABLE SMELTERS AND THE LOCATION AT WHICH THE SMELTING MUST BE ACCOMPLISHED.