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THE COMPTROLLER GENERAL
DEEcISllCN . .11 aPO THE UNITED avATas
WASHINGTON, D.C. 20548
FILE: B-190785 DATE: January 12, 1978
_41 MATTER OF: Damper Design
DIGEST:
Pcotoster's =Ypectation of second-tier
A subcontract award does not, by itself,
satiufy interested party requirement of
4 C.F.R. S 20.1(a)(1977). Accordingly,
protest by potential second-tier sub-
contractor is dismissed.
Damper Design protests the rejection of the bid of Mesam
Supply Limited, under invitation for bids No. F40650-77-B-
0038, issued by the Arnold Engineering Development Center,
Arnold Air Force Station, Tennessee, for valves. Damper
Design's grounds for protest ate that the rejection was
erroneous, premature anC not in accordance with the Armed
Services Procurement Regulation (ASPR) section 2.
We have been advised by the Department of the Air Force
of the followina:
Mesam Supply Limited, a Canadian firm,
was the low responsive bidder on 24 groups
of valves. As provided for in ASPR 6-504.1
(o)(2), the Canadian Commercial Corporation
[CCC], as potentital prime contractor, pro-
vided an endorsement of Mesam's bid to the
procuring activity prior to bid opening. On
14 and 15 November 1977, a pre-award survey of
Mesam Supply Limited was conducted. The survey
was terminated on 15 November at the request
of tho Canadian Commercial Corporation because
of a disagreement on solicitation provisions.
Mesam and the Canadian Commercial Corporation
stated that a contract would not be accepted
unless either (a) the Conditional Acceptance
and Payment provision was changed to state a
date by which final payment would be made,
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