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![handle is hein.gao/gaobaacqy0001 and id is 1 raw text is:
DOCUMENT RESUME
03584 - rA2573710]
rReview of a Contract for Mobile Radio Sets for the Army].
PSAD-77-163; B-180247. September 12, 1977. 5 pp. + enclosure (1
pp.).
Report to Rep. Gerry E. Studds; by Robert F. Keller, Deputy
Comptroller General.
Iszue Area: Federal Procurement of Goods and Services (1900).
Contact: Procurement and Systems Acquisition Div.
Budget Function: National Defense: Department of Defense -
Procurement 9 Contracts (058).
Organizaticn Concerned: Department of Defense; Department of the
Army; E-Systems, Inc.
Congressional Relevance: Rep. Gerry E. Studds.
Authority: 54 Comp. Gen. 521.
A review of the contract for AN/PRC-77 mobile radio
sets awarded by the army tc E-Systems, Inc., showed that,
although the Army accepted a GAO recommendation that the option
for additional radios in the basic contract with E-Systems not
be exercised because of defects in the way the basic contract
was awarded, the Army subsequently modified the contract several
times, significantl- increasing the number of radios procured.
The additional radic3 added to the basic contract were for
delivery under forpigri military sales. For each of these sales,
the foreign government had directed sole-source procurement from
E-Systems. No U.S. Government financing or aid was directly or
indirectly involved in any of these foreign sales.
Findings/Conclusions: The basic contract with E-Systems was
modified nine times under Department of Defense regulations
which provide that foreign governments Pay designate
commercial available items to be procured as foreign military
sales under certain circumstances. Under this provision, a
foreign government can insist on procurement from a sole-source
producer for reascns other than price. The sole source
directives from the foreign governments to procure the radios
from E-Systems were received both before and after award of the
basic contract. The Army had the option of either modifying the
existing contract or issuing a new sole-source contract to
E-Systems. In several of the cases, the Army had provided the
foreign countries with a list if potential suppliers, although
in one instance it requested the foreign country to designate
E-Systems as the sole-source p oducer for the radios in order to
meet an urgent delivery schedule. (SC)](ViewImageLocal?handle=hein.gao/gaobaacqy0001&div=1&collection=&method=preview&ext=.png&size=3)