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TO KORODY-COLYER CORPORATION: RECEIPT IS ACKNOWLEDGED OF YOUR LETTER DATED JUNE 20. ARE ENCLOSED IN ACCORDANCE WITH YOUR REQUEST. THAT COMPETITION DOES NOT APPEAR TO HAVE BEEN IMPAIRED BY THE REQUIREMENT FOR ONLY ORIGINAL MANUFACTURER'S PARTS WAS MADE WITH THE KNOWLEDGE THAT SOME BIDDERS. SINCE SEVEN BIDS WERE RECEIVED. IT WAS FELT THAT THE GOVERNMENT HAD RECEIVED THE BENEFIT OF ADEQUATE COMPETITION. EVEN THOUGH IT WAS REALIZED THAT EVEN GREATER COMPETITION COULD HAVE BEEN REALIZED IF THE SPECIFICATION WERE RELAXED.

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B-164212, AUG. 2, 1968

TO KORODY-COLYER CORPORATION:

RECEIPT IS ACKNOWLEDGED OF YOUR LETTER DATED JUNE 20, 1968, WITH ENCLOSURES, CONCERNING OUR DECISION B-164212, JUNE 18, 1968. COPIES OF B- 161521, APRIL 29, 1968, 47 COMP. GEN. ---, ADDRESSED TO MILTON C. GRACE, AND B-161521 (2), APRIL 29, 1968, ADDRESSED TO THE DIRECTOR, DEFENSE SUPPLY AGENCY, ARE ENCLOSED IN ACCORDANCE WITH YOUR REQUEST.

THE STATEMENT CONTAINED IN THE SECOND PARAGRAPH ON PAGE 5 OF OUR DECISION OF JUNE 18, 1968, THAT COMPETITION DOES NOT APPEAR TO HAVE BEEN IMPAIRED BY THE REQUIREMENT FOR ONLY ORIGINAL MANUFACTURER'S PARTS WAS MADE WITH THE KNOWLEDGE THAT SOME BIDDERS, SUCH AS YOUR COMPANY, WOULD BE PLACED AT A COMPETITIVE DISADVANTAGE BECAUSE THE COST OF PARTS ACQUISITION WOULD BE HIGHER FOR SUCH BIDDERS THAN FOR A BIDDER HOLDING A FRANCHISE FROM THE MANUFACTURER OF THE ORIGINAL PARTS.

HOWEVER, FROM THE RECORD, THE ORIGINAL PARTS REQUIREMENT DID NOT PRECLUDE NONFRANCHISED BIDDERS FROM BIDDING AND PRESUMABLY BIDS COULD BE ANTICIPATED FROM MORE THAN ONE FRANCHISED BIDDER. SINCE SEVEN BIDS WERE RECEIVED, IT WAS FELT THAT THE GOVERNMENT HAD RECEIVED THE BENEFIT OF ADEQUATE COMPETITION, EVEN THOUGH IT WAS REALIZED THAT EVEN GREATER COMPETITION COULD HAVE BEEN REALIZED IF THE SPECIFICATION WERE RELAXED.

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