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B-184376 1 (1975-10-09)

handle is hein.gao/gaobadcuw0001 and id is 1 raw text is: THE COMPTROLLER GENERAL DECISION OF THE UNITED STATES WASHINGTON, 0.C. 20548 FILE: B-184376 DATE: October 9,1975 MATTER OF: Ecoscience, Inc. DIGEST: 1. Recognizing considerable range of discretion accorded buying agency in determining procurement method best suited for given purchase and, especially recognizing complexities involved in building 2,600 military housing units in extinct volcano area, decision to purchase housing on advertised, rather than negotiated (turnkey), basis does not lack rational foundation. 2. Administrative decision not to permit turnkey alternative to conventional, advertised purchase method is not subject to question, since it appears to be rational exercise of dis- cretion given factors recited by Department for decision. Even if some factors are not as significant as they appear to be given protester's comments, support for decision is found in projected escalated labor and material costs that would likely attend delay pending turnkey revision and award. In early 1974, the Corps of Engineers, Department of the Army, was faced with the problem of deciding the method of procurement for 2,600 family housing units to be constructed in Aliamanu Crater, an extinct volcanic crater, located near Honolulu, Hawaii. The types of procurement available for choice were the turnkey method (a type of negotiated procurement involving a single contract.for both the design and construction of the project) and the conventional method (a formally advertised procurement for the construction work along with separate negotiated contracts for the required construction management and design effort involved). In May 1974, the Department decided to proceed with the con- ventional method because of the projected size and complexity of the project. Further, it was considered that the number of firms capable and willing to make turnkey proposals would be severely limited. Among the specific factors influencing this decision were: - 1 -

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