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ID-81-17 1 (1980-12-10)

handle is hein.gao/gaobabbih0001 and id is 1 raw text is:                     '                              -                        )    7
                    RESTRICTED -  Not to be released outside the General     t-
                    Accounting Office except on the -a, 's of specific approval
   Sby the Office of CongireLseG<.I Relations,
                      UNITED STATES GENERAL ACCOUNTING OFFICE
                               WASHINGTON, D.C. 20548              7
                                                       RELEASED
iPE'riRNATIONA1. O1VISION

                                                DECEMBER 10, 1980
     B-199954

     The Honorable Charles H. Percy                         11111
     United States Senate
                                                                113978
     Dear Senator Percy:

     Subject: Lvaluation of General Binding Corporation Inquiry(ID-81-17)

          This is in response to your letter of October 23, 1980, requesting
     our evaluation of comments made in a letter of September 10, 1980, from
     the General Binding Corporation. The Corporation's letter raises certain
     questions and makes various assertions, including that they are

          * * * confident that it can inmediately supply to the State
          Department a laminate with better security features than those
          of Data Guard at a lower cost than that being presently paid
          by the U.S. government. * * *

     We do not have the technical expertise necessary to determine the validity
     of the various assertions made and the merits of the Corporation's state-
     ment that they could deliver a product that would meet Department require-
     ments.

          In our August 21, 1980, letter (ID-80-56) to you we concluded the
     State Department complied with the applicable statutory and regulatory
     requirements for the award of a sole-source contract. Information given
     in the September 10, 1980, Corporation letter would not alter this opinion.
     We appreciate the Corporation's concern for being able to compete for a
     contract with an estimated $6.5 million potential sales over the next 10
     years for laminates to be used to secure passport information.

          As stated in our August 21, 1980, letter, the laminate contract with
     the 3M Company expired on July 26, 1980. At that time, no decision had been
     made whether a sole-source or competitive contract would be used to satisfy
     future laminate requirements, however, the State Department contracting
     office indicated that future requests for a sole-source contract for
     lamination material would have to be justified on the basis of a review
     of currently available products which meet the requirements of the
     Department.



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