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B-193541 1 (1979-03-27)

handle is hein.gao/gaobadhbg0001 and id is 1 raw text is: z ~ ~'TF4ECaPAPTRMLLER GENERAL DECISION &OF THE UNITED STATES W AASHINGTON, 0. C. 20548 FILE: B-193541 DATE: March 27, 1979 MATTER OF: Quest Electronics DIGEST: 0-&Y4 A AP k PxAci &ke 4VQL .S¾ r 1. Where contracting officer awarded nine con- secutively numbered purch se orders for sound detection equipment totalling $455,852 to one Federal Supply Schedule (FSS) source on Sep- tember 9, 1978, and FSS contract provided maxi- mum order limitation of $250,000, orders were improperly awarded in violation of maximum order limitation and section 101-26.401-4 (c)(1) of FPMR (1977). 2. Possible loss of funds at end of fiscal year and insufficient time to procure equipment by formal advertising do not justify placement of purchase orders totaling more than maximum order limita- tion in FSS contract since placement of such orders amounted to sole-source award without making findings required by 41 U.S.C. § 252(c) (1976). 3. Determinations as to needs of agency and which FSS sources meet those needs are matters primarily within jurisdiction of procuring agency with which GAO will not interfere unless such determinations involve bad faith or are without reasonable basis. In present case, agency justification for purchasing sound level meters from other than lowest-priced FSS source is questionable, but has not been shown to be totally unreasonable. Therefore, legal objection is not warranted. 4. Allegation that large purchase of sound detection equipment from one FSS supplier should have been made by formal advertising because purchase may create an oligopolistic or even monopolistic situa- tion in sound detection equipment field is without merit since potential for creating oligopolistic or monopolistic situation would be as great if procure- ment were accomplished by competitive bidding and no laws or regulations have been violated by procur- ing activity in this regard.

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