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New The Navy also
contends that, in any event, the agency was not required to
provide Sea Box with the Buy American Act preference because of
Hyundai’s intervening quotation of an eligible end product.
Specifically, the Navy cites FAR § 25.502(c)(3), which provides
that if the low offer is a noneligible offer and there is an
eligible offer that is lower in price than the lowest domestic
end item, then award is made to the lower priced eligible offer
without application of the preference.
Sea Box responds that Hyundai’s quotation could not be
considered in the agency’s Buy American Act analysis under FAR §
25.502(c)(3), because Hyundai’s quotation was not technically
acceptable. Specifically, Sea Box states that, contrary to the
criteria set forth in the RFQ, Hyundai provided no technical
information, commercial literature, or other data to show that
the end product in its quotation satisfied the identified
configuration changes, including minimum interior dimensions.
Comments at 12.
The Navy argues that Hyundai’s quotation was technically
acceptable, because, although the firm did not provide the
requested information, Hyundai did not take exception to any of
the requirements. Contracting Officer’s Statement at 19. The
Navy contends, citing Pacific Lock Co., B-405800, Dec. 27, 2011,
2011 CPD ¶ 286, that an agency may properly rely upon a vendor’s
representation that it will furnish products that comply with
the RFQ’s requirements. Id. We disagree.
Here, the RFQ sought quotations for TRICON II containers with
numerous configuration changes, including specific minimum
interior measurements. RFQ at 7. Vendors were specifically
required to provide information demonstrating that the vendor’s
quotation would satisfy these requirements. In this regard, the
RFQ stated that failure to meet the minimum technical
requirements would render a quotation technically unacceptable.
Id. at 8. The RFQ also stated that proposals failing to meet
these requirements would not be further evaluated. Id. We have
found that where an RFQ contains such requirements, blanket
statements of compliance without submission of requested
technical information is insufficient to show compliance with
identified requirements. See ProMar; Urethane Prods. Corp.,
B-292409 et al., Aug. 25, 2003, 2003 CPD ¶ 187 at 7; see also
Koehring Cranes & Excavators; Komatsu Dresser Co., B-245731.2,
B-245731.3, Nov. 23, 1992, 92-2 CPD ¶ 362 at 7.
Furthermore, the Navy’s reliance on our Pacific Lock decision is
misplaced. In Pacific Lock, we recognized that an agency may
rely upon a vendor’s affirmative certification that it would
provide a domestic part, where the solicitation only required
such a certification, absent some reason to question the
certification. Here, the RFQ required vendors to demonstrate
their technical compliance, which Hyundai did not do. Moreover,
Hyundai made no affirmative representations concerning the
compliance of its product.
In short, the record does not support the Navy’s determination
that Hyundai’s quotation was technically acceptable.
Accordingly, Hyundai’s quotation should not have been considered
an intervening eligible quotation in the agency’s determination
under FAR § 25.502(c)(3) that Sea Box’s quotation was not
entitled to a Buy American Act preference. Applying the Buy
American Act preference here would increase Caru’s evaluated
price to $238,050 ($158,700 plus the 50 percent evaluation
preference). See Contracting Officer’s Statement at 18-19. Thus,
under this analysis, Sea Box should have been found to have
submitted the lowest-priced, technically acceptable quotation.
(Sea Box, Inc., B-405711.2, Mar
19, 2012) (pdf)
PDS asserts that the award to Caribe was improper because Caribe
will not supply eyeglasses that meet the definition of a
domestic end item. The award was proper. Under the terms of the
provisions incorporated into the solicitation, offerors that did
not take exception to the domestic end item requirement by
listing foreign end products were certifying that they would
comply with the Act’s domestic product requirements. The
solicitation did not require any separate certification document
unless the offer was not submitted on SF 1449. Therefore,
Caribe’s signed offer on SF 1449 indicated its intention to
supply a domestic end item, and obligated the firm to comply
with the requirement. Continental Forest Products, Inc.,
B-217548, Mar. 19, 1985, 85-1 CPD para. 324 at 4. It follows
that the agency properly accepted the offer for award. PDS
maintains that VA should have investigated whether Caribe
intended to supply a domestic end item, since PDS advised VA in
a letter dated August 25, 2005 that several offerors under the
solicitation would violate the Act. Letter from PDS to VA (Aug.
25, 2005), at 1-2. This argument is without merit. The
contracting officer states that he was unaware of the letter in
August (he states that he subsequently found the letter in his
records), and thus had no reason to question any offeror’s
compliance with the Act. In any case, the letter did not
specifically identify Caribe (or any other offeror) as a firm
PDS believed would not supply a domestic end item. Thus, even if
we would otherwise consider information from one offeror
sufficient to impose on an agency an obligation to investigate
another offeror’s compliance with the Act, it is clear that the
agency here had no such obligation because it did not have any
information, or reason to believe, that Caribe would not furnish
a domestic end product. We conclude that the agency reasonably
relied upon Caribe’s self‑certification, without further
investigation. Intermagnetics Gen. Corp., B‑255741.2,
B-255741.3, May 10, 1994, 94‑1 CPD para. 302. (PDS
Consultants, Inc., B-297890, April 4, 2006) (pdf)
For manufactured end products, the FAR uses a two-part test to
define a domestic end product: (1) the article must be
manufactured in the United States, and (2) the cost of domestic
components ( i.e. , components mined, produced, or manufactured
in the U.S.) must exceed 50 percent of the cost of all
components. FAR Sections 25.003 and 25.101; see also DFARS
Section 225.101. The FAR defines "component" as an article,
material, or supply incorporated directly into an end product.
FAR Section 25.003. The protester contends that it satisfies
both prongs of the test and that its end product therefore
qualifies as a domestic end product. In this regard, the
protester argues that it proposes to import a raw material from
[deleted] and then modify it through a series of processes
(which the protester does not define). According to the
protester, these processes yield a "processed mixture," which is
the only component of the end product. It then subjects the
"processed mixture" to an "end product manufacturing process,"
which consists of "sifting and selecting the contract compliant
material." Protest at 7.
In cases involving an end product derived from a single
component or material, we have looked to whether the
component/material has undergone substantial changes in physical
character in determining whether manufacturing has occurred. A.
Hirsh, Inc. , B-237466, Feb. 28, 1990, 90-1 CPD paragraph 247 at
3; 45 Comp. Gen. 658 (1966). See also General Kinetics, Inc.,
Cryptek Div. , B-242052.2, May 7, 1991, 91-1 CPD paragraph 445
(where we looked at whether the "essential nature" of the core
component of the end product was altered in determining whether
manufacturing had occurred). Further, since the BAA requires
both that the end product have been manufactured in the U.S. and
that the cost of components mined, produced, or manufactured in
the U.S. exceed 50 percent of the cost of all components, where
it is alleged that a foreign material has been manufactured into
a component domestically and the component in turn manufactured
into an end item domestically, we have also looked at whether
the manufacturing process consists of two distinct phases, the
first yielding a component that is distinguishable from the
original material and the second yielding an end item that is
distinguishable from the component. Davis Walker Corp.,
B-184672, Aug. 23, 1976, 76-2 CPD paragraph 182 at 4-6; 45 Comp.
Gen. 658. Where the original material is of foreign origin and
we have failed to find two distinct manufacturing phases
yielding two distinct products, we have found noncompliance with
the two-pronged test for defining a domestic end product. 48
Comp. Gen. 727 (1969); 46 Comp. Gen. 784 (1967). To prevail in
its protest, then, City Chemical must demonstrate not simply
that it manufactures the dye, but that it manufactures the
"processed mixture" from the "raw" dye, and then, in a second
stage, manufactures the end product dye from the "processed
mixture." In our view, we need not address the more difficult
question of whether the steps that the protester performs in
transforming the "raw" dye into the "processed mixture" are
sufficient to constitute manufacturing because we are persuaded
that the processes performed by the protester in transforming
the "processed mixture" into the final product are not. In this
regard, the only processes that the protester claims to perform
in the second stage are sifting and selecting the "contract
compliant" material. [6] We do not think that sifting to select
the portion of the mixture that meets the specification's
particle size standard can reasonably be regarded as
manufacturing since it involves no changes--let alone
substantial changes--to the physical character of the dye.
Because there is no second stage manufacturing process, the raw
dye from [deleted], as opposed to the "processed mixture," must
be regarded as the principal component of the protester's end
product, meaning that the second prong of the domestic end
product test is not met. The protester further argues that even
to the extent that the raw material from [deleted] may be viewed
as a component of its end product, its end product still
satisfies the requirement that the cost of domestic components
exceed 50 percent of the cost of all components because domestic
labor is also a component of its end product and its labor costs
exceed the cost of the imported material. Labor is not a
component of the end product within the definition set forth at
FAR Section 25.003, however, because it is not an article,
material, or supply incorporated directly into an end product.
See Consolidated Tanneries, Ltd. , B-166786, June 24, 1969; see
also Glazer Constr. Co., Inc. v. United States , 50 F. Supp. 2d
85, 98 (D. Mass. 1999). (City
Chemical LLC, B-296135.2; B-296230.2, June 17, 2005) (pdf)
In sum, under the circumstances here, which include, among other
things, Golden’s completion of the Buy American Act certificate
in its proposal, the pre‑award investigation of Golden and its
manufacturing process by the VA OIG and Customs, the requested
post‑award submissions by Golden concerning its component costs
(that were consistent with the pre-award information), and the
lack of specifics (with the exception of its transaxle argument)
from Leisure‑Lift in support of its allegation that the majority
of the components comprising Golden’s scooter are of foreign
manufacture, we find the agency had adequate information to, and
did, reasonably determine that Golden’s scooter was a domestic
end product as relevant here. See Cryptek, supra, at 4 (awardee’s
confirmation by telephone that its Buy American Act certificate
was correct, without the submission of any additional
information, was adequate given the level of detail provided by
the protester prior to the award of the contract regarding its
allegation that the awardee’s product was not Buy American Act
compliant). (Leisure-Lift, Inc.,
B-291878.3; B-292448.2, September 25, 2003) (pdf)
Agency reasonably
determined that protester's refurbished foreign-made cargo
containers were not domestic products eligible for an evaluation
preference pursuant to the Buy American Act where the steps the
protester takes to refurbish the imported containers in the
United States do not constitute "manufacturing" within
the meaning of the Act. (TRS
Research, B-285514, August 7, 2000)
The Department of
Defense has determined it inconsistent with the public interest
to apply restrictions of the Act to the acquisition of defense
equipment which is mined, produced, or manufactured in certain
"qualifying countries," one of which is Turkey.
Department of Defense FAR Supplement (DFARS) sect. 225.872-1(a).
Thus, although MTI did represent in its offer that it intended
to furnish containers manufactured in Turkey, application of a
Buy American evaluation factor to its offer would not have been
appropriate. (Charleston
Marine Containers, Inc., B-283393, November 8, 1999) |