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B-176949(2),B-177228 1 (1973-08-17)

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COMPTROLUER GENERAL Or THE UNITED STATES
          WASHUmGTON D.C. so4n


AUG  17 1M


Th  Donorable John W. Warnr
The  ecretary of the Navy

bmr  kr. Secretarys


I


     This is in reply to the letters of October 20 sMa Novaber 27,
1972, frcu the Depty Ccmaader  for Contracts , N4Yal Ship Systms
Ccnnd,   tuhnin    reports an the protests of Harbor Boab bilding
Ccnpozy against the award of contracts under invitation for bids
(an)  No. 1a62791-73-seo033 and.-62791-73-B-0471, issued by the
Supervisor of Shipbuilding, 11th Naval Distriot, San Diego#
California.


6


     The protest. concern thF4eality  of the Thze Port Polictmas
applied to contracts for the repair of Naval vessels. In our' letter
of today to counsel for liarbor Boat Build4ng Cccpany, cow enclosed,
we have uphield the policy as a legitimate requiranent of the Navy.
Howeverj we are concerned thit the automatic application of the
policy to all procuraxents for ship overhaul, as appears to be re
quired by section 7-3.4 of the Ship Repair Contract Manual (s'ubjeot
to the limted  exceptions specified thereiw), would placoe an undne
restriction on competition in those inst-oes where its application
would -not fhrther the intent of the Heme Pk1*t Policy. )br eample,
where al  or most of the crew of a particular vessel axe nmarried
the hame port restriction voult not serve to flotar the state4
Hane Port Policy. We are not in a position to knov vhether it would
be administratively feasible for procuremneb officials to detemine,
prior to the issuance of solicitations, it Eose Port Policy considers-
tions are applicable to specific vessels. If such a determination
feasibly can be made, we believe the geographic restrictions of the
Ne   Fort Policy should not be imporol.


        sincerely Ye= a,

            YXCELLER
fDenutv Ocptroller General
        of the thited state


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