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B-186235 1 (1976-08-10)

handle is hein.gao/gaobaddih0001 and id is 1 raw text is: ~THE COMPTROLLER GENERA L DECISION . OF THE UNITED STATES WASHINGTON, D.C. 20548 FILE: B-186235 DATE: August 10, 1976 MATTER OF: SCM Corporation, Kleinschmidt Division 4q -70 Kleinschmidt Incorporated DIGEST: 1. GAO will not undertake to resolve dispute involving interpretation of license agreement even though it bears upon evaluation factors of solicitation where parties to dispute each present reasonable arguments to support differing interpretations and dispute ulti- mately is for resolution before Armed Services Board of Contract Appeals or United States Court of Claims. 2. Agency's use of actual cost method of price adjustment is justified where regulation provides that its use is appropriate for contract involving no major element of design or development work and protester fails to rebut agency's conclusion that only minimal design and develop- ment is required for particular procurement. This bid protest, in large part, results from a disagree- ment as to the interpretation of a license agreement entered into between the protester and the administrative agency. The interpretation of the license agreement materially affects the evaluation factors in the protested solicitation that pertain to royalties foreseeably payable under the license agreement. As background, in the late 1960s the Army Electronics Command (ECOM) instituted a program to replace obsolescent electromechanical teletypewriter field equipment with new equipment using modern solid state techniques designated forward area tactical teletypewriter (FATT). SCM Corporation, Kleinschmidt Division (Kleinschmidt) prevailed in competition for design of the system and was awarded a development contract. Prior to the award of the contract, Kleinschmidt claimed a proprietary interest in a portion of the FATT system. In the spring of 1971, the Army Materiel Command (now Army Materiel Development and Readiness Command /DARCOM/), investigated Kleinschmidt's claim that it had developed part of the FATT system at private expense and concluded that the - 1- ~q~~o6 ~7?0q

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