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B-212997 1 (1984-05-02)

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                          ,  THE COMPTROLLER UUNERAL
    DECIION                  OP THE UNITO STATE8
                             WASHINGTON. 0. C. 30546




    PILE:      B-212997            DATE: May 2, 1984

    MATTER OF: Trailways Manufacturing, Inc.


    DIGEST:

    Complaint that life cycle cost penalties and
    credits incorporated in a grant-funded procurement
    solicitation create unduly restrictive specifi-
    cations is denied because complainant has failed
    to show that the penalties and credits do not
    reflect minimum needs and are not reasonably
    related to the grantee's intended goal of insuring
    that the long term cost of the procurement will be
    minimized.

    Trailways Manufacturing, Inc. (Trailways), has
submitted a complaint about solicitation No. 1230 issued by
the Port Authority of Allegheny County (Grantee) for the
purchase of 20 suburban-type motor coaches pursuant to grant
No. PA-03-0152 administered by the Urban Mass Transportation
Administration (UMTA). Trailways alleges that the amended
solicitation is unduly restrictive of competition. We deny
the complaint.

     In April 1983, the Grantee issued solicitation
No. 1230. In May 1983, Trailways submitted its request to
receive approved equal status for its Eagle model 10
coach. On June 13, 1983, the Grantee responded to the
approved equal requests and issued addendum No. 4 and
appendix A that provided penalties or cre4its in regard to
22 specification items based upon a life cycle cost
analysis. If an offered item lacked certain required
features, a set dollar amount was added to its life cycle
cost calculation.

     By letter dated June 22, 1983, Trailways protested to
the Grantee against the life cycle cost penalties and
credits assigned to various requirements outlined in the
specifications (appendix A), contending that they unjustly
penalized Trailways and favored another source. In its
letter, Trailways reiterated its request for approved
equal status for the drive axle, front axle, and bogie axle
to which the Grantee did not previously respond. Trailways

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