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B-158766 1 (1999-01-29)

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96EU R       Comptroller General
             of the United States
     s       Washington, D.C. 20548





              B-158766


              January 29, 1999


              The Honorable J. Dennis Hastert
              Speaker of the House
                of Representatives

              Dear Mr. Speaker:

              This letter responds to the requirements of the Competition in Contracting Act
              of 1984, 31 U.S.C. § 3554(e) (Supp. II 1996), that the Comptroller General report to
              the Congress each instance in which a federal agency did not fully implement a
              recommendation made by our Office in connection with a bid protest decided the
              prior fiscal year. There was one such occurrence during fiscal year 1998.

              In Pemco Aeroplex, Inc., B-280397, Sept. 25, 1998, 98-2 CPD   79, we considered a
              challenge to an Air Force solicitation that bundled together into one procurement a
              significant portion of the workload currently performed by the Sacramento Air
              Logistics Center, which the Base Realignment and Closure Commission
              recommended be closed by July 2001. We sustained the protest because we
              concluded that the Air Force had failed to show that combining this workload into a
              single solicitation was reasonably required to satisfy the agency's needs. We
              recommended that the Air Force cancel the solicitation and resolicit its
              requirements without bundling these wo rklo ads.

              The Air Force decided to proceed with contract award under the solicitation despite
              our decision. The Undersecretary of Defense for Acquisition and Technology has
              advised the Congress that the Air Force decision was driven by a conclusion that
              implementation of our decision's recommendations would harm Air Force readiness.
              In an argument that had been considered and rejected by our Office as insufficient,
              the Air Force stated that the risk to readiness of unbundling the KC-135 portion of
              the Sacramento workload was unacceptable.

              In response to the Air Force refusal to follow the recommendation in our decision,
              Pemco Aeroplex filed a lawsuit in the United States District Court, Northern District
              of Alabama. That lawsuit, Pemco Aeroplex, Inc. v. Cohen (Civ. Action No. CV-98-J-
              2584-S), seeks a ruling that the Air Force solicitation, and subsequent action, are
              improper. The case is pending before the court.

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