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B-159463 1 (1971-12-28)

handle is hein.gao/gaobablec0001 and id is 1 raw text is: RESTICTED . Not to bo ).Ised *utde te O Reral o 7 Aceo.minig OiLo excep3t on the basi s a cific oa by the 0W of CongrasweI Rat s, COMPTROLLER GENERAL OF THE LWWT ATE/ WASHINGTON, D.C. RELEASED 2 ~B-i59463 DC2'7 (, Dear Mr. Eshleman: O71 Your letter of October 21, 1971, requested that we furnish information on the requirement of a Government con- 'St r4: that the Hamilton Watch Company purchase jewel bearings f rom the William Langer .Jewel Bearing Plant, Rolla, North , ':.. Dakota. The Government-owned, contractor-operated Langer 2jnp.t was established by the Government to provide a domestic source for the jewel bearings needed in defense production so that the United States could be free of dependency upon foreign sources of supply that might be cut off in the event of war. The continued operation of the plant, the only facility in the continental United States capable of producing jewel bearings in large quantities, is considered by the Office of Emergency Preparedness (OEP) to be essential to the national security. The Langer plant is the mandatory source for jewel bearings contained in items purchased by the Government and for jewel bearings purchased for the national stockpile. The Government contract awarded to the Hamilton Watch Company provides for supplying the normal wristwatch require- ments of the General Services Administration (GSA) Region 6 supply depot for the period from July 1, 1971, to June 30, 1972. The estimated contract amount is $452,836 for 19,680 wristwatches. The contract requires that Langer plant jewel bearings be used in the performance of this contract or, al- ternatively, be used in equal quantity in commercial produc- tion. On October 19, 1971, the Hamilton Watch Company ordered 334,560 jewel bearings from the Langer plant at a cost of $85,214. Deliveries of the jewel bearings were scheduled to begin on December 1, 1971, when 25 percent of the total quantity was due. We discussed the procurement and the use of Langer plant jewel bearings with representatives of GSA and OEP who stated that the Langer plant was an essential part of the national mobilization base and that its continued operation as a do- me-stiFsource of jewel bearings was essential to the national security. GSA representatives stated also that the Langer pTi-fff was not competitive in price with the Swiss jewel- bearing industry because of the Langer plant's relatively high cost of labor and low volume of production. Swiss production A of watch jewels is about 1,000 times greater than Langer < ) 50TH ANNIVERSARY 1921-197 - - 7077

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