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PLRD-83-65 1 (1983-04-13)

handle is hein.gao/gaobabmxf0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 PROCUREMENT, LOGISTICS, AND READINESS DIVISION B-21 0405 APRIL 13, 1983 The Honorable Clarence L. Long House of Representatives Dear Mr. Long: Subject: Complaint About A Contract Awarded by Federal Prison Industries, Incorporated (GAO/PLRD-83-65) On October 12, 1982, you asked us to consider a complaint by Mr. Charles P. Harbaugh, the President of Bar-Tee Imagineering Company Incorporated, concern- ing the award of a contract for metal fabricating equipment by Federal Prison Industries. Specifically, Mr. Harbaugh said Federal Prison Industries rejected a proposal that was about $250,000 lower than the proposal of the firm awarded the contract. In accordance with a telephone discussion-with Mr. Albert J. Zawicki of your district office on December 29, 1982, we are providing the following summary on the results of our review. We made our review at the U.S. Penitentiary, Lewisburg, Pennsylvania. We discussed the subject contract with Federal Prison Industries officials and reviewed pertinent files. We also discussed procedures for reviewing contracts with the Controller of Federal Prison Industries in Washington, D.C. The specifications in the contract called for the design, manufacture, assembly, testing, delivery, and start-up of the equipment. The existing equip- ment was to be sold either under the contract by a trade-in allowance provision or under a separate contract, depending on which transaction yielded the greater amount. Since work had to be performed in a penal institution, the solicitation required interested firms to visit and inspect the site prior to submitting pro- posals to acquaint themselves with the conditions under which the work had to be performed. Proposals were received from four firms by the July 30, 1982, closing date. Federal Prison Industries officials determined that one from Gary Steel Products was not acceptable because it did not comply with the request for proposals. The contract (number 14PI-6025) was awarded on August 16, 1982, to the low offeror, John R. Wald Company, in the amount of $756,320. The existing equip- ment was sold under a separate contract to another firm for $21,800. (942238) 121056

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