B-181359, DEC 2, 1974, 54 COMP GEN 445

B-181359, DEC 2, 1974, 54 COMP GEN 445

CONTRACTS - NEGOTIATION - SOLE SOURCE BASIS - TWO-STEP PROCUREMENT THOUGH STATED LAUNDRY SYSTEM REQUIREMENTS, INCLUDING NEED FOR INDEPENDENT BATCH PROCESSING, ARE QUESTIONED, AGENCY DETERMINATION OF MINIMUM NEEDS IS NOT SHOWN TO BE WITHOUT REASONABLE BASIS. PROTESTER'S BLANKET OFFER TO SUPPLY ACCEPTABLE SYSTEM, INCLUDING PROPOSED USE OF WASHER AND EXTRACTOR NOT SHOWN TO MEET REQUIREMENTS, PROVIDES INSUFFICIENT BASIS TO QUESTION DETERMINATION TO PROCURE SOLE-SOURCE (10 U.S.C. 2304(A)(10), ASPR 3- 210.2(I) (1973 (ED.)), FROM ONLY CONCERN OFFERING ACCEPTABLE SYSTEM. HOWEVER, IN FUTURE LAUNDRY SYSTEM PROCUREMENTS, USE OF TWO-STEP ADVERTISING PROCEDURE MIGHT BE DESIRABLE.

IN THE MATTER OF ALLEN AND VICKERS, INC.; AMERICAN LAUNDRY MACHINERY, DECEMBER 2, 1974:

ALLEN AND VICKERS, INC., HAS PROTESTED TO OUR OFFICE AGAINST THE SOLE SOURCE PROCUREMENT OF AN AUTOMATED LAUNDRY SYSTEM FROM AMERICAN LAUNDRY MACHINERY (REFERRED TO IN THE RECORD AS AMERICAN LAUNDRY MACHINERY INDUSTRIES (ALMI)) BY WALTER REED ARMY MEDICAL CENTER (WRAMC).

THE PROCUREMENT IS BEING MADE BOTH TO REPLACE THE EXISTING LAUNDRY AT WRAMC AND FOR TESTING PURPOSES TO DETERMINE IF THE NEW SYSTEM WOULD BE USED IN THE FUTURE AT OTHER ARMY FACILITIES. ALLEN AND VICKERS, WHICH IS A DESIGNER OF LAUNDRY INSTALLATIONS AND A DISTRIBUTOR AND INSTALLER OF VARIOUS TYPES OF LAUNDRY EQUIPMENT, OBJECTS TO THE AWARD ON THE GROUNDS THAT THE ARMY HAS OVERSTATED ITS MINIMUM NEEDS; THAT ALLEN AND VICKERS CAN, IN ANY EVENT, FURNISH A SYSTEM MEETING THE REQUIREMENTS; AND, ALTERNATIVELY, THAT CERTAIN COMPONENTS OF THE SYSTEM SHOULD BE PROCURED COMPETITIVELY. THE ARMY'S POSITION IS THAT SINCE ALMI IS THE SOLE SOURCE OF SUPPLY (ARMED SERVICES PROCUREMENT REGULATION (ASPR) SEC. 3-210.2(I) (1973 ED.)) OF A SYSTEM MEETING THE MINIMUM NEEDS, THE PROCUREMENT IS PROPER.

FOR THE REASONS WHICH FOLLOW, THE PROTEST IS DENIED.

THE ALMI SYSTEM CONSISTS OF VARIOUS QUANTITIES OF 18 ITEMS, INCLUDING 11 ALMI SLANT LINE MODULAR WASHERS; TWO WET BELT CONVEYERS; TWO ALMI MODEL 393 STRIKE EXTRACTORS; THREE MODEL 2243 AUTOMATIC THERMATIC STEAM HEAT TUMBLERS; ONE FORMATIC WET SYSTEM STEAM FINISHING CABINET; ONE MODEL CPC COMBINATION FOLDER; ONE MODEL 4EF TRUMATIC II PRIMARY FOLDER; ONE GRANTHAM SMALL PIECE FOLDER; TWO 6-ROLL HYPRO IRONERS; TWO CLASS 2301 IRONER VENTILATING CANOPIES; ONE MODEL TSF II TRU-FEED FEEDER/SPREADER DEVICE; TWO MODEL XL14-42-5 ECI LINT COLLECTORS; TWO FLATBELT CONVEYERS; ONE AUTOMATIC LIQUID CENTRAL SUPPLY SYSTEM; AND ONE AUTOMATIC SUPPLY BLENDING SYSTEM. THE TOTAL PRICE OF THE SYSTEM, LESS A $6,000 TRADE-IN ALLOWANCE, IS $519,857.

NOTWITHSTANDING THE PENDENCY OF THE PRESENT PROTEST, AWARD WAS MADE TO ALMI ON JUNE 18, 1974, ON THE BASIS OF A DETERMINATION BY THE CONTRACTING OFFICER THAT A PROMPT AWARD WOULD BE ADVANTAGEOUS TO THE GOVERNMENT. TWO CONSIDERATIONS FIGURED IN THIS DETERMINATION. THE FIRST WAS THE FACT THAT APPROPRIATED FUNDS WERE AVAILABLE FOR THE PROCUREMENT IN FISCAL YEAR 1974 BUT NOT IN FISCAL YEAR 1975. THE SECOND WAS THE NEED TO COORDINATE WITH THE CONSTRUCTION SCHEDULE OF THE NEW LAUNDRY BUILDING. UNDER A SEPARATE CONTRACT, DEMOLITION OF THE EXISTING LAUNDRY BUILDING WAS SCHEDULED TO BEGIN ON OR ABOUT JULY 1, 1974. IT IS ALSO REPORTED THAT THE NEW STRUCTURE, WHICH IS SCHEDULED FOR COMPLETION IN LATE APRIL 1975, WAS DESIGNED IN TERMS OF FLOOR SPACE, WEIGHT LOAD REQUIREMENTS AND UTILITY CONNECTIONS SO AS TO ACCOMMODATE THE ALMI SYSTEM.

THE FIRST ISSUE FOR CONSIDERATION IS THE PROTESTER'S CHALLENGE TO THE AGENCY'S DETERMINATION OF ITS MINIMUM NEEDS. IN THIS REGARD, WRAMC'S LAUNDRY REQUIREMENTS ARE REPORTED TO BE UNIQUE. A SUMMARY OF THE MINIMUM NEEDS AND THE JUSTIFICATIONS THEREFOR IS AS FOLLOWS:

1. TOTAL SYSTEMS MANUFACTURE

THE SYSTEM INCLUDES ALL EQUIPMENT TO PERFORM WASHING FUNCTIONS, EXTRACTION, CONDITIONING AND FINISHING OF MAJOR LINEN CATEGORIES OF FLATWORK, ROUGH DRY, PRESS WORK, AND GARMENTS AND UNIFORMS. ALL COMPONENTS SHOULD BE OF THE SAME MANUFACTURER, AND FULLY COMPATIBLE TO PROVIDE FOR A SMOOTH, FLOW-THRU PRODUCTION LINE. ABSENCE OF THESE FEATURES WILL ULTIMATELY RESULT IN REDUCED EFFICIENCY AND INCREASED MAINTENANCE AND SERVICE COSTS DUE TO NUMBER OF DIFFERENT MANUFACTURERS AND SUPPLIERS INVOLVED. FURTHER, AN INCREASE IN REQUIRED SPARE PARTS INVENTORY WILL RESULT.

2. U.S. ORIGIN

SERVICE AND REPAIR PARTS AVAILABILITY; ITEMS OF FOREIGN MANUFACTURE MAY EXPERIENCE DELAY IN REPAIR DUE TO DISTANCE FROM HOME FACTORY.

3. BATCH PROCESSING

TO PROVIDE FOR MAXIMUM FABRIC CLASSIFICATION, SOIL CLASSIFICATION, COLOR CLASSIFICATION, AND CUSTOMER IDENTITY. ALL LINEN IS PROCESSED UNDER ONE OR MORE OF THESE CLASSIFICATIONS. ABSENCE OF THESE FEATURES WILL RESULT IN DECREASED SERVICE TO THE CUSTOMER.

4. INDEPENDENT WASH POCKET CONTROL

TO PLAN FOR MINIMUM LOSS OF PRODUCTIVE CAPACITY. NO MORE THAN 25% PRODUCTION CAPACITY SHOULD BE SUBJECT TO BE OUT OF OPERATION AT ANY GIVEN TIME. IF THIS CONDITION IS EXCEEDED THE CONTINUOUS SUPPLY OF CLEAN PATIENT LINEN IS SERIOUSLY JEOPARDIZED.

5. EXTRACTOR WALLS OF NONPUNCTURABLE MATERIAL

TO PREVENT UNSCHEDULED DOWNTIME DUE TO PRESENCE OF SHARP, POINTED OBJECTS IN LINEN COMMONLY FOUND IN A SURGICAL ENVIRONMENT. UNSCHEDULED DOWNTIME OF EQUIPMENT WILL RESULT IN REDUCTION OR CESSATION OF CLEAN LINEN TO PATIENT AREAS.

6. AUTOMATIC LIQUID SUPPLY INJECTION

TO OBTAIN MAXIMUM CONSERVATION OF SUPPLIES THRU MECHANICAL INJECTION; TO OBTAIN A GUARANTEED WASH FORMULA.

7. WATER RECYCLE/HEAT RECLAMATION FEATURE

ECOLOGICAL AND FISCAL CONSERVATION.

8. STEAM HEAT DRYER/CONDITIONER

REDUCTION OF ATMOSPHERIC EFFLUENT; NON-AVAILABILITY OF NATURAL GAS.

9. MAXIMUM WASH POCKET FLEXIBILITY IN FORMULA SELECTION

TO PROVIDE FOR FULL EMPLOYMENT AND MAXIMUM EFFICIENCY OF UP TO EIGHT BASIC FORMULAS APPLIED TO SEGREGATED BATCH LOTS BEGINNING AT 35 LBS/BATCH, EACH REQUIRING DIFFERENT FORMULAS. IF THIS CAPABILITY IS NOT PROVIDED, HYGENIC STANDARDS AND CUSTOMER SERVICE ARE REDUCED.

10. TOTAL AUTOMATION OF LAUNDERING PROCESS FROM SOILED PHASE THROUGH CONDITIONING WITHOUT MANUAL HANDLING OF LINEN

TOTAL EMPLOYMENT OF MACHINE RESULTING LABOR SAVINGS. ***

11. SIMPLICITY IN DESIGN; EASY SERVICEABILITY

THESE FEATURES ARE DESIRABLE TO REDUCE MAINTENANCE COSTS AND CONSERVE MANPOWER IN SERVICING.

THE MOST PERTINENT OF THESE REQUIREMENTS CAN BE SUMMARIZED IN TWO GENERAL CATEGORIES: FIRST, THE NEED FOR A WASHER CAPABLE OF VARIOUS INDEPENDENT BATCH PROCESSING TECHNIQUES (ITEMS 3, 4, 9, SUPRA; AND, SECOND, THE NEED FOR A FULLY AUTOMATED SYSTEM WITH ALL COMPONENTS PRODUCED BY THE SAME MANUFACTURER (ITEMS 1, 10 AND 11).

WRAMC PLACES CONSIDERABLE EMPHASIS ON THE NEED FOR INDEPENDENT BATCH PROCESSING (35- TO 200-POUND BATCHES) WITH DIFFERENT WASH FORMULAS. THERE ARE ESSENTIALLY TWO REASONS FOR THIS. FIRST, BECAUSE OF DIFFERENT SOIL CLASSIFICATIONS (GREASE, HUMAN BLOOD, ANIMAL BLOOD, RADIOACTIVE MATERIALS, WAS, ETC.) LAUNDRY BATCHES MUST BE SEGREGATED AND WASHED SEPARATELY TO PREVENT CROSS-CONTAMINATION AND COLOR BLEEDING. THUS, ITEMS SUCH AS COLOR WORK, OPERATING ROOM LINEN, ANIMAL LINENS, BABY LINEN AND EXPERIMENTAL SURGICAL LINEN MUST BE PROCESSED SEPARATELY WITH DIFFERENT FORMULAS. WRAMC USES EIGHT DIFFERENT LAUNDRY WASH FORMULAS.

IN ADDITION, WRAMC BELIEVES IT IS MANDATORY TO MAINTAIN THE INTEGRITY OF LAUNDRY BATCHES SUBMITTED BY DIFFERENT CUSTOMERS. THAT IS, THE LAUNDRY WILL PROCESS NOT ONLY HOSPITAL WORK, BUT ALSO WORK FROM THE DENTAL CLINIC, MOTOR POOL, CHEST CLINIC, CHAPLAIN'S OFFICE AND A NUMBER OF OTHER ACTIVITIES. TO ACCUMULATE SOILED LAUNDRY FROM EACH ACTIVITY AND PROCESS ONE LARGE BATCH AT A TIME WOULD BE IMPRACTICAL, BECAUSE STORAGE SPACE IS LACKING AND THE VARIOUS ACTIVITIES DO NOT HAVE LARGE INVENTORIES OF LINEN SUPPLIES. IN ADDITION, DELIVERY SCHEDULES CALL FOR 72-HOUR SERVICE TO NONHOSPITAL CUSTOMERS (5 PERCENT OF THE TOTAL WORKLOAD) AND 1-DAY SERVICE FOR THE HOSPITAL (95 PERCENT OF THE TOTAL WORKLOAD).

THE NEED FOR A FULLY AUTOMATED SYSTEM WITH ALL COMPONENTS PRODUCED BY THE SAME MANUFACTURER IS BASED ON EXPERIENCE WITH THE PREVIOUS WRAMC LAUNDRY OPERATION, WHICH INVOLVED MANUAL LOADING AND UNLOADING OF WASHERS, EXTRACTORS AND TUMBLERS. DETERGENTS HAD TO BE MANUALLY INSERTED AND FINISHED LAUNDRY MANUALLY PRESSED AND MANUALLY FOLDED. THE PREVIOUS LAUNDRY WAS MADE UP OF INCOMPATIBLE COMPONENTS FROM MANY DIFFERENT MANUFACTURERS, NECESSITATING THE OBTAINING OF MAINTENANCE, REPAIRS AND PARTS FROM MANY SUPPLIERS. IN SUM, WRAMC BELIEVES THAT THESE CONSIDERATIONS REQUIRE A SYSTEM WITH MINIMUM LABOR FUNCTION AND EASY SERVICEABILITY.

ALLEN AND VICKERS MAKES A NUMBER OF POINTS IN RESPONSE TO WRAMC'S JUSTIFICATION OF ITS MINIMUM NEEDS. IN GENERAL, THE PROTESTER SUGGESTS THAT BATCH PROCESSING OF 35- TO 200-POUND LOADS WITH DIFFERENT LAUNDRY FORMULAS IS AN INEFFICIENT PROCEDURE AND QUESTIONS WHETHER WRAMC'S NEEDS IN THIS REGARD ARE ANY MORE UNIQUE THAN THOSE OF ANY TEACHING HOSPITAL. THE PROTESTER CITES IN THIS CONNECTION A STATEMENT BY WRAMC THAT THE TUNNEL-TYPE WASHERS WHICH WERE EVALUATED (WASHERS WHICH PROCESS LARGE, HOMOGENEOUS BATCHES) MIGHT BE IDEAL FOR COMMERCIAL LAUNDRIES, BUT ARE UNSATISFACTORY FOR WRAMC. ALLEN AND VICKERS ALLEGES THAT COMMERCIAL LAUNDRIES ARE FACED WITH A GREATER NUMBER OF LAUNDRY CLASSIFICATIONS FROM A GREATER NUMBER OF CUSTOMERS THAN WRAMC. IT IS CONTENDED THAT, IN THIS LIGHT, IT IS DIFFICULT TO UNDERSTAND WHY WRAMC NEEDS MORE SOPHISTICATED EQUIPMENT THAN EQUIPMENT FOUND TO BE IDEAL FOR COMMERCIAL WORK.

AS POINTED OUT IN B-176570, JANUARY 17, 1973, AND OTHER DECISIONS OF OUR OFFICE CITED BY THE ARMY, IT IS THE PRIMARY RESPONSIBILITY OF THE CONTRACTING AGENCY TO DETERMINE ITS MINIMUM NEEDS AND TO DRAFT PROPER SPECIFICATIONS REFLECTING THOSE NEEDS. IN THE ABSENCE OF DEMONSTRATED FRAUD OR BAD FAITH, OUR OFFICE WILL QUESTION SUCH DETERMINATIONS ONLY UPON A CLEAR SHOWING THAT THE DETERMINATIONS WERE WITHOUT A REASONABLE FACTUAL BASIS. MATTER OF CESSNA AIRCRAFT COMPANY, 54 COMP. GEN. 97 (1974).

IN THE PRESENT CASE, WE BELIEVE THAT THE POINTS MADE BY ALLEN AND VICKERS RAISE SIGNIFICANT QUESTIONS WHICH BEAR MORE UPON THE PROPER PROCEDURES TO BE UTILIZED IN DETERMINING MINIMUM LAUNDRY SYSTEM NEEDS GENERALLY THAN TO A CLEAR SHOWING THAT THE WRAMC'S DETERMINATION WAS WITHOUT A REASONABLE FOUNDATION. SPECIFICALLY, WE THINK THE AGENCY'S JUSTIFICATION FOR INDEPENDENT BATCH PROCESSING WITH SEPARATE WASH FORMULAS HAS NOT BEEN CONVINCINGLY REFUTED BY THE PROTESTER. BUT THE QUESTION RAISED - WHETHER LARGE BATCH PROCESSING WITH LESS SOPHISTICATED EQUIPMENT MIGHT BE A MORE DESIRABLE ALTERNATIVE IN OTHER CIRCUMSTANCES - IS A VALID AND IMPORTANT ONE. A FACTOR WHICH WE BELIEVE MAY BE SIGNIFICANT HERE IS ONE WHICH IS NOT SPECIFICALLY ADDRESSED IN THE RECORD - NAMELY, THE CORRELATION BETWEEN THE NEED FOR DIFFERENT WASH FORMULAS AND THE ESTIMATED AMOUNT OF LAUNDRY EXPECTED TO BE PROCESSED WITH EACH FORMULA. IN A SITUATION WHERE THE BULK OF THE LAUNDRY WORK WAS TO BE PROCESSED UNDER ONE OR TWO FORMULAS WITH A SMALL REMAINING QUANTITY OF SPECIAL WORK REQUIRING A VARIETY OF DIFFERENT FORMULAS, A NEED FOR INDEPENDENT BATCH PROCESSING WITH INDIVIDUAL WASH FORMULAS MIGHT NOT BE JUSTIFIED.

IN ADDITION, WE HAVE NO BASIS TO QUESTION THE CONTENTION THAT A MODERN AUTOMATED LAUNDRY SYSTEM UTILIZING A MINIMUM AMOUNT OF MANUAL LABOR IS A DESIRABLE GOAL. BUT IT IS LESS CLEAR FROM THE RECORD WHY A PARTIALLY AUTOMATED, MORE LABOR-INTENSIVE SYSTEM WOULD BE A WHOLLY IMPRACTICABLE ALTERNATIVE FOR WRAMC. AGAIN, IN A DIFFERENT SET OF CIRCUMSTANCES A TOTALLY AUTOMATED SYSTEM MIGHT NOT BE A VALID MINIMUM NEED.

HAVING CONSIDERED THE ABOVE POINTS AND OTHER QUESTIONS RAISED BY THE PROTESTER, WE CANNOT CONCLUDE THAT WRAMC'S MINIMUM NEEDS HAVE BEEN SHOWN TO BE WITHOUT A REASONABLE BASIS. ALLEN AND VICKERS NEXT OBJECTS TO THE DETERMINATION TO PROCURE THE LAUNDRY SYSTEM ON A SOLE-SOURCE BASIS FROM ALMI. IN THIS REGARD, THE AGENCY'S SOLE-SOURCE JUSTIFICATION IS ESSENTIALLY GROUNDED UPON THE UNIQUE CAPABILITY OF ALMI TO SUPPLY A SYSTEM MEETING THE REQUIREMENTS, AS EVIDENCED BY THE CONTRACTING OFFICER'S DETERMINATION AND FINDINGS:

UPON THE BASIS OF THE FOLLOWING FINDINGS AND DETERMINATION, THE PROPOSED CONTRACT DESCRIBED BELOW MAY BE NEGOTIATED WITHOUT FORMAL ADVERTISING PURSUANT TO THE AUTHORITY OF 10 U.S.C. 2304(A)(10), AS IMPLEMENTED BY PARAGRAPH 3-210.2(I) OF THE ARMED SERVICES PROCUREMENT REGULATION.

FINDINGS

1. THE PURCHASING AND CONTRACTING BRANCH, WALTER REED ARMY MEDICAL CENTER, WASHINGTON, D.C., PROPOSES TO PROCURE BY NEGOTIATION A NEW LAUNDRY SYSTEM FOR THE NEW LAUNDRY FACILITY AT THE FOREST GLEN SECTION OF WALTER REED ARMY MEDICAL CENTER, FROM AMERICAN LAUNDRY MACHINERY INDUSTRIES, AT AN ESTIMATED COST OF $450,000.00.

2. PROCUREMENT FROM A SINGLE SOURCE IS NECESSARY, AS AMERICAN LAUNDRY MACHINERY INDUSTRIES IS THE ONLY MANUFACTURER OF A COMPLETELY AUTOMATED SYSTEM, WITH THE CAPABILITIES FOR BATCH LOADING REQUIRED TO ALLOW COMPLETE LINEN CLASSIFICATION ACCORDING TO THE NEEDS OF EACH ACTIVITY AT WALTER REED ARMY MEDICAL CENTER.

3. USE OF FORMAL ADVERTISING FOR THIS PROCUREMENT IS IMPRACTICAL DUE TO THE ABSENCE OF PROSPECTIVE BIDDERS CAPABLE OF MANUFACTURING A LAUNDRY SYSTEM WITH ALL OF THE ESSENTIAL REQUIREMENTS.

DETERMINATION

THE PROPOSED CONTRACT IS FOR PROPERTY OR SERVICES FOR WHICH IT IS IMPRACTICABLE TO OBTAIN COMPETITION BY FORMAL ADVERTISING.

PRIOR TO DECIDING UPON A SOLE-SOURCE PROCUREMENT OF THE ALMI SYSTEM, WRAMC OFFICIALS MADE SITE VISITS TO FOUR COMMERCIAL INSTALLATIONS HAVING VARIOUS TYPES OF LAUNDRY SYSTEMS. THE FIRST OF THESE HAD PRIMARILY ALMI EQUIPMENT; THE SECOND, PRIMARILY POENSGEN EQUIPMENT; THE THIRD, PRIMARILY HYDRAXTOR EQUIPMENT; AND THE FOURTH, AN AMETEC CORPORATION SYSTEM UTILIZING A VARIETY OF EQUIPMENT TYPES. THE POENSGEN, HYDRAXTOR AND AMETEC SYSTEMS WERE FOUND TO MEET SOME OF WRAMC'S REQUIREMENTS, BUT EACH WAS DEFICIENT IN AT LEAST FOUR OF THE 11 CRITERIA OUTLINED ABOVE. NONE COULD OFFER ALL OF THE INDEPENDENT BATCH PROCESSING TECHNIQUES WITH DIFFERENT WASH FORMULAS, AND NONE WAS FOUND TO UTILIZE EXTRACTORS WITH NONPUNCTURABLE WALLS. IN COMPARISON, WRAMC FOUND THAT THE ALMI SYSTEM MET ALL THE REQUIREMENTS, INCLUDING OFFERING AN EXTRACTOR WITH NONPUNCTURABLE (STAINLESS STEEL) WALLS.

ALLEN AND VICKERS ALLEGES, HOWEVER, THAT IT COULD FURNISH A SYSTEM MEETING THE REQUIREMENTS. AT A MEETING WITH WRAMC OFFICIALS ON MAY 31, 1974, THE PROTESTER MADE, IN EFFECT, A BLANKET OFFER TO MEET WRAMC'S STATED PERFORMANCE STANDARDS. ACCORDING TO THE AGENCY, THE PROTESTER AT THAT TIME IDENTIFIED ONLY ONE SPECIFIC COMPONENT WHICH ITS SYSTEM WOULD UTILIZE - THE VOSS ARCHIMEDIA WASHER. IN A LETTER TO OUR OFFICE COMMENTING UPON THE ADMINISTRATIVE REPORT, ALLEN AND VICKERS SUBSEQUENTLY IDENTIFIED ANOTHER PROPOSED COMPONENT - THE ELLIS EXTRACTOR. IN ADDITION, THE PROTESTER POINTS OUT THAT IT LEARNED OF THE PRESENT PROCUREMENT ONLY SHORTLY BEFORE THE CONTRACT AWARD AND, THEREFORE, THAT IT IS DIFFICULT TO SUGGEST SPECIFIC COMPONENTS WHICH WOULD MAKE UP AN ACCEPTABLE SYSTEM.

WE CAN APPRECIATE THE PROBLEMS INVOLVED IN ATTEMPTING TO DEVELOP ON SHORT NOTICE A DETAILED PROPOSAL OFFERING TO SUPPLY A SYSTEM, ESPECIALLY IN VIEW OF THE FACT THAT WRAMC SPENT A NUMBER OF MONTHS DEVELOPING ITS REQUIREMENTS AND SELECTING A SYSTEM. NEVERTHELESS, IT IS INCUMBENT ON THE PROTESTER TO SUBSTANTIATE ITS ALLEGATION THAT IT COULD HAVE BEEN AN ALTERNATIVE SOURCE OF SUPPLY AND, THUS, THAT THE PROCUREMENT SHOULD HAVE BEEN COMPETITIVE. WE THINK THAT THE PROTESTER'S BLANKET OFFER TO MEET THE REQUIREMENTS IS INSUFFICIENT SUBSTANTIATION. IN ADDITION, THERE IS SERIOUS DOUBT THAT THE TWO SPECIFIC SYSTEMS COMPONENTS WHICH ALLEN AND VICKERS HAS MENTIONED WOULD IN THEMSELVES BE ACCEPTABLE TO PERFORM THE FUNCTIONS PERFORMED BY THE CORRESPONDING ALMI COMPONENTS.

IN THIS REGARD, ALLEN AND VICKERS HAS SUPPLIED TECHNICAL LITERATURE CONCERNING THE VOSS ARCHIMEDIA WASHER. EXAMINATION OF THIS INFORMATION REVEALS THAT THE VOSS MACHINE IS A TUNNEL-TYPE WASHER WHICH CAN PROCESS BATCHES OF 800 TO 3,300 POUNDS. ACCORDING TO WRAMC, ALLEN AND VICKERS CONCEDED AT THE MAY 31, 1974, MEETING THAT THIS MACHINE COULD NOT MEET THE NEED FOR SIMULTANEOUS BATCH PROCESSING WITHOUT INTERMIXTURE OF WASHING SOLUTIONS BETWEEN DIFFERENT BATCHES. THE TECHNICAL LITERATURE CLAIMS THE MACHINE OFFERS "ABSOLUTE BATH SEPARATION," BUT A DRAWING OF THE WASHER INDICATES ONLY A SINGLE SEPARATION WALL MIDWAY THROUGH THE TUNNEL. THE WALLS BETWEEN INDIVIDUAL BATCH COMPARTMENTS ON EITHER SIDE OF THE SEPARATION ARE PERFORATED AND WOULD PERMIT INTERMIXTURE OF SOLUTIONS. WOULD APPEAR, THEN, THAT THE SUITABILITY OF THE VOSS WASHER FOR WRAMC'S REQUIREMENT OF SIMULTANEOUS PROCESSING OF SMALL BATCHES WITHOUT CROSS- CONTAMINATION OF SOLUTIONS IS EXTREMELY DOUBTFUL. IN ADDITION, WE HAVE NO BASIS TO QUESTION WRAMC'S OBSERVATION THAT UNSCHEDULED DOWNTIME ON A TUNNEL-TYPE WASHER BRINGS THE ENTIRE WASHING OPERATION TO A HALT, AND THAT TUNNEL WASHERS ARE UNDESIRABLE FOR THAT REASON.

IN ITS COMMENTS ON THE ADMINISTRATIVE REPORT, THE PROTESTER HAS ALSO FURNISHED TECHNICAL LITERATURE ON AN ELLIS CORPORATION EXTRACTOR, WHICH IS DESCRIBED AS BEING TOTALLY AUTOMATIC AND HAVING A STAINLESS STEEL ENCLOSURE. THIS INFORMATION WAS FURNISHED IN CONTRADICTION OF A WRAMC STATEMENT THAT ELLIS MANUFACTURED ONLY WASHERS AS OPPOSED TO SYSTEMS. THE LITERATURE REFERS TO ELLIS AS "SYSTEMS DESIGNERS." WHILE THIS MAY BE THE CASE, WE DO NOT BELIEVE SUCH INFORMATION IN ITSELF CONVINCINGLY DEMONSTRATES THAT THE ELLIS EXTRACTOR MEETS WRAMC'S REQUIREMENTS.

LASTLY, THE PROTESTER CONTENDS THAT BECAUSE CERTAIN COMPONENTS OF THE ALMI SYSTEM ARE NOT FABRICATED BY ALMI, BUT RATHER ARE FABRICATED BY OTHER CONCERNS AND FURNISHED BY THEM TO ALMI, THESE ITEMS SHOULD HAVE BEEN PROCURED COMPETITIVELY. THE ITEMS IN QUESTION ARE AS FOLLOWS:

ITEM:

0001AK SMALL PIECE FOLDER WITH TAKE-AWAY CONVEYER.

0001AP MODEL XL14-42-5 LINT COLLECTORS.

0001AQ AND 0001AR FLATBELT CONVEYERS.

0001AS AUTOMATIC LIQUID CENTRAL SUPPLY SYSTEM.

0001AT AUTOMATIC SUPPLY BLENDING SYSTEM.

IN ADDITION, A PORTION OF ITEM 0001AG, THE WET SYSTEM STEAM FINISHING CABINET, IS MANUFACTURED BY A CONCERN OTHER THAN ALMI. THIS PORTION IS THE TAKE-AWAY SCREW CONVEYER WHICH IS USED WITH THE STEAM FINISHING CABINET. THE SUPPLIER-FURNISHED ITEMS AMOUNT TO MORE THAN $92,000 OUT OF A TOTAL SYSTEM PRICE OF $519,857.

IN GENERAL, IT IS FOR THE CONTRACTING AGENCY TO DETERMINE WHETHER TO PROCURE BY MEANS OF A SYSTEMS APPROACH AS OPPOSED TO SEPARATE PROCUREMENTS OF INDIVIDUAL PIECES OF EQUIPMENT, AND IN THE ABSENCE OF CLEAR EVIDENCE SHOWING SUCH DETERMINATIONS LACKED A REASONABLE BASIS, THEY WILL NOT BE DISTURBED BY OUR OFFICE. SEE 53 COMP. GEN. 270 (1973). WE BELIEVE THAT WRAMC'S MINIMUM NEEDS, DISCUSSED SUPRA, ESTABLISH A REASONABLE BASIS FOR A SYSTEMS PROCUREMENT APPROACH. THE FACT THAT SEVEN INDIVIDUAL COMPONENTS, HAVING A DOLLAR VALUE OF LESS THAN ONE-FIFTH OF THE TOTAL SYSTEM PRICE, COULD HAVE BEEN PROCURED COMPETITIVELY DOES NOT OVERRIDE THE BASIS ESTABLISHED HERE FOR A SYSTEMS PROCUREMENT. THEREFORE, WE FIND NO MERIT IN THIS PORTION OF THE PROTEST.

WHILE, AS INDICATED, WE DO NOT OBJECT HERE TO THE PURCHASE OF A LAUNDRY SYSTEM IN A SINGLE PROCUREMENT, IN SUCH CIRCUMSTANCES THE USE OF OTHER PROCEDURES WHICH WOULD PROMOTE COMPETITION SHOULD BE EXPLORED IN FUTURE PROCUREMENTS. WE THINK THAT SEVERAL TECHNICALLY ACCEPTABLE OFFERS MIGHT HAVE BEEN RECEIVED IF VARIOUS MANUFACTURERS AND DISTRIBUTORS HAD HAD THE OPPORTUNITY TO INDEPENDENTLY PREPARE TECHNICAL PROPOSALS TO MEET WRAMC'S NEEDS.

IN THIS CONNECTION, IT IS OF INTEREST TO NOTE THAT EARLIER THIS YEAR THE VETERANS ADMINISTRATION (VA) SOUGHT TO PROCURE COMPLETE LAUNDRY SYSTEMS FOR ITS HOSPITALS AT NORTH LITTLE ROCK, ARKANSAS, AND BRECKSVILLE, OHIO. ONE ASPECT OF THESE PROCUREMENTS WAS CONSIDERED IN MATTER OF CHARLES J. DISPENZA & ASSOCIATES ET AL., B-181102, B-180720, AUGUST 15, 1974. UNDERSTAND THAT THE REQUIREMENT WAS FOR A SYSTEMS APPROACH DESIGNED FOR A MAXIMUM OF AUTOMATION AND A MINIMUM OF EMPLOYEE HANDLING. VA DID NOT PROCURE ON A SOLE-SOURCE BASIS FROM ONE MANUFACTURER. INSTEAD, TWO-STEP ADVERTISING WAS UTILIZED, ALLOWING BIDDERS TO DEVELOP THEIR OWN TECHNICAL PROPOSALS INCLUDING BRAND NAME COMPONENTS OBTAINED FROM VARIOUS MANUFACTURERS. WHILE EACH AGENCY MUST DETERMINE ITS NEEDS AND THE PROCUREMENT PROCEDURES TO SATISFY THOSE NEEDS, A SIMILAR APPROACH IN THE PRESENT CASE MIGHT HAVE BEEN DESIRABLE. CERTAINLY, SUCH AN APPROACH SHOULD BE CAREFULLY CONSIDERED IN FUTURE PROCUREMENTS OF THIS NATURE.