Saft America Inc.

B-270111 Feb 07, 1996 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Contracting officer reasonably determined that the protester was nonresponsible to supply large quantities of urgently needed batteries for communications-electronics equipment used by soldiers where the determination was based on the protester's delinquent deliveries under two recent contracts for similar items. The Army has frozen its supply of the protester's batteries until the problem is corrected so as to prevent injuries to soldiers. (Saft) protests the Department of the Army's determination that it was nonresponsible to perform a contract under invitation for bids (IFB) No. The BA-5590/U battery is a small. Lightweight battery that is the primary power source for approximately 50 different types of portable communications-electronics equipment used by soldiers. View Decision Matter of: Saft America Inc. File: B-270111 Date: February 7, 1996 Contracting officer reasonably determined that the protester was nonresponsible to supply large quantities of urgently needed batteries for communications-electronics equipment used by soldiers where the determination was based on the protester's delinquent deliveries under two recent contracts for similar items, the agency has received a number of reports from soldiers in the field that batteries previously supplied by the protester may vent toxic materials, and the Army has frozen its supply of the protester's batteries until the problem is corrected so as to prevent injuries to soldiers. Attorneys DECISION Saft America Inc. (Saft) protests the Department of the Army's determination that it was nonresponsible to perform a contract under invitation for bids (IFB) No. DAAB07-95-B-G346, for supplying batteries for military applications. We deny the protest. On September 20, 1996, the Army's Communications-Electronics Command (CECOM) issued the IFB for 408,000 urgently needed BA-5590/U nonrechargeable lithium sulfur dioxide batteries. The BA-5590/U battery is a small, lightweight battery that is the primary power source for approximately 50 different types of portable communications-electronics equipment used by soldiers. As the procurement was conducted using accelerated procedures, CECOM orally solicited bids from the only two firms that had produced the battery for the Army previously, Saft and Power Conversion Inc. (PCI). [1] Both firms submitted bids by the September 25 closing date. Saft's total bid price was $16,870,800 and PCI's was $21,750,480. CECOM requested that the Defense Contract Management Area Office (DCMAO) conduct pre-award surveys of both firms. In PCI's case, the pre-award survey team's findings were positive and the firm was recommended for award. In Saft's case, the pre-award survey team made negative findings regarding Saft's financial, technical, and production capabilities. The pre-award survey report stated that Saft had not demonstrated adequate financial strength to perform the proposed contract and complete its current backlog of sales. The report noted that Saft had been asked to provide current financial information and had responded with financial data for 1993 and 1994, but had provided no data for 1995. Even though Saft had supplied the same batteries to the Army in the past, the pre-award survey team rated Saft as unsatisfactory on technical and production capability. The team noted Saft's technical/design problems and its unsatisfactory (i.e., delinquent) delivery of similar batteries under two existing contracts with the Army. Overall, the pre-award survey team recommended that Saft not be considered for award of the present contract. The contracting officer also was aware of and discussed with other cognizant CECOM officials the fact that there had been a number of incidents involving "venting" of BA-5590/U batteries manufactured by Saft. A venting is defined as the operating of the cell's vent mechanism; it occurs when the cell's internal pressure increases above normal operating parameters. As a safety feature, each battery cell has a venting mechanism (i.e., a weak spot built into the cell container) that allows the controlled release of toxic materials when the cell's internal pressure gets too high. [2] Ventings are undesirable events and are considered a serious problem due to the release of toxic materials that endanger any person in the immediate area. [3] On September 21, 1995, five additional ventings of Saft batteries were reported at Fort Irwin. The Army was not able to immediately determine what caused the Saft ventings and no manufacturing defect that would cause the problem was identified. The agency suspects that [DELETED] causes the problem, which is more likely to occur at the end of a battery's life. Because the Army knows of no method to screen its inventory for [DELETED] batteries, it has frozen its Saft inventory and will not release the batteries to the field.