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B-177349 1 (1973-11-05)

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   B- 17 7349                PLAE

                                                       NOV 5 1973

   The Honorable Charles H. Percy
/P', United States Senate

V Dear Senator Percy:

        Your letter of May 31, 1973, requested-that we examine
   into complaints from your constituent about lr~ocuxemeoqt, pro- ,
     u,.o..,,_Of the ..Naval AmmunitionDeppt (NAD), Crane, Indiana.

        Your constituent, who represents the HLC Manufacturing
   Company, raised a number of questions concerning the follow-
   ing issues.

        --Although a contract for a camera system was terminated
          because the contractor failed to deliver, no penalty
          was assessed.

        --Because of an ambiguity in the delivery schedule for
          another procurement for a camera system, NAD judged
          an HLC bid nonresponsive.

        --The specifications were revised on a resolicitation
          for a camera system in favor of the R. W. Borrowdale
          Company, an HLC competitor.

        --On another procurement NAD issued a request for pro-
          posal to only one firm, although other companies were
          equally capable of supplying the equipment.

        Our examination of the records and discussions with
   agency officials pertaining to these procurements revealed no
   basis for questioning the agency actions or for concluding
   that favoritism was involved.

   NO PENALTY FOR NONDELIVERY

        On June 23, 1969, NAD entered into a contract with the
   Solid State Equipment Corporation for a camera system. But
   Solid State could not deliver the system because it could not
   acquire a light system that met specifications.



                               ~9~ '9 O9/o8

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