Navy Procedures Used in Awarding Solicitation Number 62474-82-R-0051 at the Naval Weapons Center, China Lake, California.
GENERAL ACCOUNTING OFFICE WASHINGTON DC PROCUREMENT LOGISTICS AND READINESS DIV
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NWC prepared its cost estimate to perform the support services in-house and had the estimate reviewed and certified by the Naval Audit Service. Bids were opened on June 29, 1982. NWC announced that based on a cost comparison the in-house cost to perform family housing maintenance, supply operations and warehousing, and vehicle operations and maintenance functions was about 2.8 million less than the cost of contracting. Pan Am World Services, Inc., the low bidder, filed an appeal in July 1982, alleging deficiencies with the NWC in-house cost estimate. An appeals officer from the Naval Material Command NAVMAT in Washington, D.C., was appointed to review the appeal. A review team was established to assist the appeals officer. In August 1982 the appeals officer concluded that after adjustments, which he had applied, the cost of contracting was 364,000 less than the in-house estimate. Consequently, the decision to perform the activities in-house was reversed and the functions were to be contracted. In September, about 400 appeals from NWC employees and others, such as union and civic leaders in the China Lake area, were submitted claiming errors in the adjustments that showed contracting to be less costly.
- Administration and Management
- Logistics, Military Facilities and Supplies