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B-191577 1 (1978-08-29)

handle is hein.gao/gaobadgjj0001 and id is 1 raw text is: 












lb


FILE:  B-191577

MATTER  OF:   R


DATE:  AuwjuL cO 197F'


CA Global Communications, Inc.


DIGEST:


     Validity of low guaranteed rate pro-
     posed by offeror is matter between
     offeror and regulatory agency, and need
     not be cousidered by contracting officer
     in awarding contract for lease of cable
     circuits.


     RCA Global Communications, Inc. (RCAG) protests
the award by the Defense Commercial Communications
Office (DECCO), Defense Communications Afency, to 1TT
Worldcom (ITTW), of a contract for the 1Lase of two
undersea cable circuits between Guam and th- Phil-
ippines,

     Prior to the award to ITTW, DECCO had leased
the two  able circuits from RCAG on a monthly bass:s,
effective In November 1977, based on a quotation
of $8,424. consisting of $3,500 for service at the
Guam terminal and $4,924 for service at the Phili-
ppine terminal. However, ihe Philippine termina.
rate had bean quoted contingent on a rate reduction
cubject to .approval by the Philippine Board of
Communications (BOC). Until this rate was approved,
the Philipuine terminal rate in effect was $6,000
per mont'. and this is the rate at which RCAG billed
DECCO.

     RCAG notified DECCO on December 23, 1E77, that
its application for the $4,924 rate had been rejected
by BOC and that it would apply for approval of a
$5,725 Philippine terminal rate as well as FCC


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                        THE  COMPTMAI.IEft  GIENERAL
DECISIOiN OP THE UilTEfl STATES
                        WASHINGTON, D.C. 20540


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