TITLE: B-311452, Hydro Fitting Manufacturing Corporation, July 8, 2008
BNUMBER: B-311452
DATE: July 8, 2008
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B-311452, Hydro Fitting Manufacturing Corporation, July 8, 2008

   Decision

   Matter of: Hydro Fitting Manufacturing Corporation

   File: B-311452

   Date: July 8, 2008

   Susan J. Buchanan, Hydro Fitting Manufacturing Corporation, for the
   protester.

   Edward C. Hintz, Esq., and Michael L. Walters, Esq., Defense Logistics
   Agency, for the agency.

   Glenn G. Wolcott, Esq., and Ralph O. White, Esq., Office of the General
   Counsel, GAO, participated in the preparation of the decision.

   DIGEST

   Agency properly determined that protester is not a qualified source to
   provide valve stem assemblies, a critical safety item, where protester has
   been provided an opportunity to comply with qualification requirements but
   has declined to do so.

   DECISION

   Hydro Fitting Manufacturing Corporation (HFMC) protests the Defense
   Logistics Agency's (DLA) failure to list HFMC as a qualified source with
   regard to request for quotations (RFQ) No. T-2016 to purchase a quantity
   of valve stem assemblies, national stock number (NSN) 2640-01-419-6205
   (hereinafter referred to as "NSN-6205").

   We deny the protest.

   In March 2008, the Defense Supply Center Columbus (DSCC), a field activity
   of DLA, issued RFQ-T-2016, seeking quotations to provide 3,000 valve stem
   assemblies, NSN-6205. The assemblies are used on the high mobility
   multipurpose wheeled vehicle (HMMWV) and are considered critical safety
   items because failure could lead to underinflation of the HMMWV's tires,
   resulting in vehicle instability and potentially causing death or serious
   bodily injury. Agency Report (AR), Contracting Officer's Statement, at 1.
   Accordingly, only sources that have obtained source approval are
   considered eligible to provide the valve stem assemblies.

   HFMC asserts that it should be listed as a qualified source for this
   procurement based on testing it completed in 2006 with regard to one
   component of the assemblies.[1] HFMC maintains that, in connection with a
   previous procurement conducted in 2004, unidentified representatives of
   the U.S. Army Tank and Automotive Command (TACOM) [2] advised HFMC that
   the component part, NSN-1063, was the only portion of the valve stem
   assemblies for which source approval was required. Accordingly, HFMC
   maintains that it must now be listed as an approved source for the entire
   assembly.

   The agency responds that there are, and have been since 2003,
   qualification requirements for both the component part, NSN-1063, and the
   overall assembly, NSN-6205. Specifically, the agency explains that
   following numerous product quality deficiency reports (PQDR) concerning
   leaking assemblies, the agency began requiring qualification testing for
   the overall assemblies in November 2003. AR, Tab 3, para. 3.

   Further, the record shows that HFMC was provided written notice in March
   2008 regarding the qualification requirements for the overall
   assemblies.[3] In response to this notification, HFMC complained that HFMC
   had previously been "o.k.'d by TACOM" as a qualified source for the
   assemblies, characterized the requirement for submission of additional
   data as "clerical work," and declined to provide the necessary
   information. AR, Tab 1, Email from HFMC to DLA (Mar. 19, 2008).

   A procuring agency may limit competition for the supply of parts if doing
   so is necessary to ensure the safe, dependable and effective operation of
   military equipment, see, e.g., Tura Mach. Co., B-241426, Feb. 4, 1991,
   91-1 CPD para. 114 at 3, and the contracting agency is primarily
   responsible for determining its minimum needs and for determining whether
   a potential offeror will satisfy those needs, since it must bear the
   burden of difficulties resulting from defective determinations in this
   regard. Chromalloy Gas Turbine Corp., B-234272, May 17, 1989, 89-1 CPD
   para. 474 at 2. When a contracting agency restricts a contract award to
   only approved sources and imposes qualification requirements, unapproved
   sources should be given a reasonable opportunity to qualify. 10 U.S.C.
   sect. 2319 (2000). However, an agency is not required to delay a
   procurement solely to provide a potential offeror an opportunity to
   demonstrate its ability to become approved. 10 U.S.C. sect. 2319 (c)(5);
   The Purdy Corp., B-259066, Mar. 1, 1995, 95-1 CPD para. 120 at 3. This is
   particularly true where the offeror contributes to its failure to obtain
   timely source approval. Id.

   Here, HFMC has not meaningfully challenged either the substance of the
   DLA's determination regarding the critical nature of the valve assemblies,
   nor the authority of DLA to establish source approval qualification
   requirements. Rather, its entire protest rests on the assertion that
   unidentified TACOM personnel previously advised HFMC that it "need only
   qualify the assembly component [NSN-1063] in order to qualify the entire
   [NSN-]6205 tank valve assembly."[4] HFMC Comments, May 14, 2008. In short,
   HFMC argues that, because unidentified TACOM representatives allegedly
   misled HFMC several years ago regarding the qualification requirements--or
   alternatively, that HFMC misunderstood the scope of the qualification
   requirements--DLA is now obligated to list HFMC as an approved source for
   this procurement.

   Based on the record here, we reject HFMC's protest that the agency
   improperly failed to include HFMC as an approved source for acquisition of
   the valve assemblies at issue. Indeed, it is clear that HFMC has been
   given an opportunity to meet the requirements to become a qualified source
   for the valve stem assemblies, but has declined to do so. Accordingly,
   there is no basis to question the agency's determination not to identify
   HFMC as an approved source in this solicitation.

   The protest is denied.

   Gary L. Kepplinger
   General Counsel

   ------------------------

   [1] The record shows that HFMC completed qualification testing for
   NSN4730-01-346-1063 (hereinafter referred to as "NSN-1063")--one component
   of the valve stem assemblies--in November 2006. AR, Tab 1, Letter from
   TACOM to HFMC (Nov. 20, 2006).

   [2] The Tank Automotive Research Development Engineering Center (TARDEC),
   a component of TACOM, is the engineering support activity for the tires
   and tire accessories for the HMMWV.

   [3] Specifically, in March 2008, the contracting officer advised HFMC,
   among other things, of the following:

     [HFMC] must provide a Bill of Materials for the six items in the subject
     kit. Please provide your drawing (if your company makes the part) or
     your supplier's drawing if your company does not make the part for each
     item in the kit. The Govt. needs to verify that the parts for the
     proposed assembly kit conforms with the drawings (both dimensional,
     material, and testing identified on subject dwgs [drawings].) For
     example, the O-ring has dwg 12342794 listed. Your company must provide a
     dwg for subject O-ring and the test data as indicated in item 2 of dwg
     12342793 (provide your drwg of approved part along with reqts
     [requirements] listed if that is what you will submit with the kit).
     Similarly, dwgs are needed for the tank valve 1234634, Nut MS21245-8,
     valve core TR-C1, and valve cap TR-VC8.

   AR, Tab 3, Email from Contracting Officer to HFMC (Mar. 4, 2008).

   [4] Although HFMC's protest refers to various email and telefax
   communications with government personnel in connection with its
   qualification testing of the component part, NSN-1063, none of these
   communications indicates that this component was the only part for which
   qualification testing was required. Further, HMFC has expressly declined
   to identify the source of the alleged representations, stating: "[we] do
   not choose to make declarations part and parcel of GAO's time and review."
   HFMC Comments, May 14, 2008.