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B-195429 1 (1979-10-29)

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                         THE COMPTROLLER GENERAL
DECISION                 0-F THE UNITED      STATES
                 9.4>*~W ASHINGTON, 0. C. 2.0E48



FILE:       B-195429          DATE:   October 29, 1979

MATTER OF:      Lanier Business Products, Inc.


DIGEST:

     Protester's contention that reductions in
     its Federal Supply Schedule prices effective
     before award made its equipment the least
     expensive is denied because protester's price
     was still higher than award price.


     Lanier Business Products (Lanier) protests the
award of purchase order DABT35-79-F-3953 for a dic-
tation system to Dictaphone Corporation by the Depart-
ment of the Army, Fort Dix, New Jersey. Lanier contends
that it offered lower prices than Dictaphone for the
same equipment. We disagree.

     Prior to awarding the purchase order, the con-
tracting officer contacted four firms that held Federal
Supply Schedule (FSS) contracts, informing them of the
specifications to be met and the contracting officer's
opinion as to which of each respective contractor's
equipment best satisfied the Army's needs. The sup-
pliers were requested to either confirm the contracting
officer's understanding of their equipment or identify
alternatives by February 28, 1979. This was accom-
plished by individual discussions between supplier
and Army representatives.

     Lanier and Dictaphone offered the lowest prices.
The February 28 schedule price was $40,557 for Lanier
and $39,673 for Dictaphone. The prices used for evalua-
tion purposes, however, included a General Services
Administration discount and the addition of a penalty
for foreign products, as required by the Buy American
Act, 41 U.S.C. § 10a&et se (1976). Lanier's evaluated
price was $46,228.92 and Dictaphone 's evaluated price
was $44,489.84.


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