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B-182576 1 (1976-02-20)

handle is hein.gao/gaobadufv0001 and id is 1 raw text is: 


           COMPTROLLER GENERAL OF THE UNITED STATES
                      WASHINGTON. D.C. Z0548



B-182576
                              /7)                    FEB 20    976



The Honorable Paul A. Stone
Acting Deputy Assistant Secretary
  for Grants and Procurement Xanagement
Department of Health, Education, and Welfare

Dear Mr. Stonel

     We are in receipt of your letter of December 31, 1975,
referencing the actions taken by the National Institutes of
Health (NIH) in connection with a contract awarded to Delta
Data Systems Corp. under request for proposals No. NIH-74-P(62)-
132-CC. The award of this contract was the subject of our deci-
sion in the matter of Cv tek Incorporated, B-182576, June 25,
1975 (54 Comp. Gen. 1080 (1975), 75-1 CPD 384).

     The solicitation in question contemplated the possibility of
lease, purchase, and lease with option to purchase arrangements
for the computer terminals in question. The contract awarded to
Delta Data on September 19, 1974, provided for the acquisition of
an indefinite number of customized terminals. The terminals were
to be ordered as required over the period of the contract and its
extensions with a minimum of 100 terminals to be ordered. The con-
tract also contained two 1-year options to renew the contract beyond
its initial 12-month base period. However, the contract also con-
tained the provision Increasing the guaranteed rental period from 1
year to a minimum of 2 years and also a penalty clause that provided
if the Covernment terminated the lease any time before the end of 2
years the Government would have to pay the Items' purchase price
less any rental paid up to that point.

     Your letter of December 31 advised us of a number of significant
details with regard to NIK's acquisition process. We now understand
that on March 28, 1975, or approximately 3 months before the issuance
of the decision and, in fact, a few days prior to our holding a con-
ference on the matter, your agency placed an order with Delta Data for
the purchase of five terminals, Moreover, you advised that on June 18,
1975, your agency placed an additional order for 20 units. The placing
of these orders, you note, resulted in NMH's becoming liable for the
outright purchase of the guaranteed minivum of 100 terminals.

     After the issuance of our decision, which was critical of the
uanner in which NIH had awarded the contract, Computek made inquiries





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