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B-184495 1 (1976-02-26)

handle is hein.gao/gaobaddfn0001 and id is 1 raw text is: THE CMPTROLLER GENERAL DECISION ~ OF THE UNITED STATES WASHINGTON, D.C. 20548 FILE: B-184495 DATE: February 26, 1976 i MATTER OF: Union Carbide Corporation 6 0l DIGEST: 1. Failure of procuring activity to inform competing offeror in negotiated procurement for- fixed-price contract that Govern- ment would directly reimburse contractor for interest on borrowings to finance plant expansion when reimbursement is prohibited by agency procurement regulation denied such offeror opportunity to compete on equal basis. 2. Although technical transfusion of one offeror's unique or innovative idea to other offerors is prohibited, offeror's request for direct reimbursement by Government of its interest expense is not such a unique or innovative idea, but is suggestion for departure from procurement ground rules which, if accepted by agency, must be communicated to all competing offerors. Union Carbide Corporation has protested the award of a contract by the National Aeronautics and Space Administration (NASA) to Air Products and Chemicals, Inc. (APCI), for NASA's east coast liquid hydrogen requirements (primarily for the space shuttle program) for the period.1975 to 1987. Union Carbide claims that NASA did not conduct meaningful discussions with it and did not provide it with an opportunity to compete on an equal basis with APCI. The procurement was initiated with the issuance of request for proposals (RFP) No. 8-1-4-18-00009 by NASA's Marshall Space Flight Center. The RFP stated that NASA anticipated possible multiple awards for at least one portion of the contract period and it encouraged proposers with little or no liquid hydrogen production capability to submit proposals to fulfill at least a portion of the total requirement. The award of fixed-price contracts was envisioned. On January 17, 1975, proposals were received from APCI and Union Carbide. APCI proposed to expand its current production facilities and to provide approximately 95 percent of the total re- quirement. Union Carbide did not propose to expand its facilities, and offered only 26 percent of the total. requirement. Although neither firm was exactly compliant with the RFP and both proposed additional conditions and terms not contained in the RFP, NASA decided to conduct discussions with both offerors. This decision is explained as follows: ~L2~~ 2~O'

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