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B-185267 1 (1976-04-16)

handle is hein.gao/gaobaddpg0001 and id is 1 raw text is: o THE COMPTROLLER GENERAL DECISION . OF THE UNITED STATES WASHINGTON. D.C. 20548 FILE: B-185267 DATE: April 16, 1976 e4 MATTER OF: Dumont Oscilloscope Laboratories, Inc. DIGEST: Determination not to set aside procurement for labor surplus area concerns on basis that procurement is not severable into two economic production runs is not abuse of contracting officer's discretion where record presented reflects: (1) agency's indication of not insubstantial duplicative costs; (2) fact that there is reasonable indication that at least two com- petitive bids will be received; (3) possible duplica- tion of certain fixed startup costs; (4) fact that delivery schedule must be tailored to meet agency's needs without consideration of impact on potential set asides; and (5) fact that procurement, although using performance specifications, was designed to achieve standardization of item. The protest in question regards solicitation No. F41608-76- R-3612 which was issued by the San Antonio Air Logistics Center. The subject solicitation, a two-step formally advertised procure- ment, requested that as step one bidders submit samples of 100 Hz oscilloscopes as a prerequisite to an award of a fixed-price requirements contract to fulfill the Government's needs for these oscilloscopes for a 3-year period. The solicitation gave the Gov- ernment's best estimate per year of 1,200 units with a maximum of 1,800 units per year. Dumont questions the Air Force's failure to utilize a labor surplus area (LSA) set-aside for the foregoing procurement. Armed Services Procurement Regulation (ASPR) § 1-802 (1975 ed.) states: * * * [Ilt is the policy of the Department of Defense to aid labor surplus areas (LSA) and encourage increased hiring of disadvantaged individuals by placing contracts with LSA concerns, to the extent consistent with procurement objectives and when such contracts can be awarded at prices no higher than those obtainable from other concerns * * * - 1

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