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B-224004.2,B-224005.2 1 (1987-04-10)

handle is hein.gao/gaobadmqr0001 and id is 1 raw text is: 

         The Comptroller General
         of the United States
         Washington, D.C. 20548
IT       Decision





         Matter of: Mills Manufacturing Corporation--Reconsideration

         File:     B-224004.2; B-224005.2

         Date:      April 10, 1987


         DIGEST

         1. Agency properly procured its needs for parachutes under
         requirements type contracts with ordering periods of 2 years
         and 3 years, respectively, rather than under a multiyear type
         procurement, where the agency was uncertain as to how many
         units it would need over the contract period. Multiyear con-
         tracting format requires that quantity solicited remain
         substantially unchanged throughout contract term.

         2. In a solicitation calling for a requirements contract,_
         an agency need only state a realistic estimate of its
         requirements for the goods being procured based on most
         current information available. Although agency admits its
         needs are difficult to predict, precise or certain statement
         of quantity is not required since such a requirement would
         vitiate the purposes of employing a requirements contract
         format and protester has not shown estimate is not realistic.

         3. Letters from a contractor's suppliers which indicate that
         those suppliers will not make long-range price commitments do
         not constitute clear and convincing evidence that the con-
         tracting agency acted unreasonably or arbitrarily in choosing
         to employ a requirement type contract to satisfy several
         years' needs.

         DECISION

         Mills Manufacturing Corporation requests that we reconsider
         our decision in Mills Manufacturing Corp., B-224004,
         B-224005, Dec. 18, 1986, 86-2 C.P.D. I 679, that the Army
         Troop Support Command properly issued two solicitations for
         requirements contracts for periods of more than 1 year under
         Federal Acquisition Regulation /FAR), 48 C.F.R. q 16.50
         (1986), for the purchase of personnel and personnel reserve
         parachutes. We affirm our decision.







                                       o~670

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