Baldt Inc., B-278648, February 23, 1998

B-278648 Feb 23, 1998 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights 1998) for domestic manufacture of anchor chain is denied where record shows that award complies with statutory requirements for domestic manufacture of the chain (the studs and links will be welded. The stud link chain will be produced. For the components of that chain to be substantially manufactured in the United States (only one component (the studs) will be manufactured outside of the United States. The aggregate cost of which is substantially less than the aggregate cost of the components manufactured in the United States). An award was made to Lister on October 31. As follows: None of the funds in this Act may be available for the purchase by [DOD] (and its departments and agencies) of welded shipboard anchor and mooring chain 4 inches in diameter and under unless the anchor and mooring chain are manufactured in the United States from components which are substantially manufactured in the United States: Provided. View Decision Matter of: Baldt Inc. File: B-278648 Date: February 23, 1998 DIGEST Attorneys DECISION Baldt Inc. protests the award of a contract to Lister Chain & Forge Inc. under request for quotations (RFQ) No. SPO490-97-Q-1043, issued by the Defense Logistics Agency for flash butt welded, stud link (1-3/8-inch) anchor chain, National Stock No. 4010-00-149-5609. [1] Baldt contends that the agency improperly failed to evaluate Lister's compliance with the domestic manufacturing requirements at section 8016 of the Department of Defense (DOD) Appropriations Act, 1998, Pub. L. No. 105-56, 111 Stat. 1203, 1224 (1997). We deny the protest. BACKGROUND Lister submitted the lowest-priced quotation, with a unit price of $6,098 and an extended price of $60,980; Baldt submitted the highest-priced quotation, with a unit price of $7,125 and an extended price of $71,250. In its quotation, Lister identified its address as a domestic one--in Blaine, Washington--and stated that the same address applied to the place of inspection and shipping. An award was made to Lister on October 31, 1997. Baldt learned of the award on November 6, and filed its protest with our Office on November 14. On November 21, the agency and Lister entered into a bilateral modification agreement incorporating the terms of Defense Federal Acquisition Regulation Supplement (DFARS) Sec. 252.225-7019, Restriction on Acquisition of Foreign Anchor and Mooring Chain, into the award documentation; the provision had been inadvertently omitted from the RFQ. [2] This DFARS provision implements (and adopts the language of) section 8016 of the DOD Appropriations Act, 1998 (the Act), supra, which provides, in pertinent part, as follows: None of the funds in this Act may be available for the purchase by [DOD] (and its departments and agencies) of welded shipboard anchor and mooring chain 4 inches in diameter and under unless the anchor and mooring chain are manufactured in the United States from components which are substantially manufactured in the United States: Provided, That for the purpose of this section manufactured will include cutting, heat treating, quality control, testing of chain and welding (including the forging and shot blasting process): Provided further, That for the purpose of this section substantially all of the components of anchor and mooring chain shall be considered to be produced or manufactured in the United States if the aggregate cost of the components produced or manufactured in the United States exceeds the aggregate cost of the components produced or manufactured outside the United States . . . . On November 24, Lister submitted a letter with additional information to the agency, regarding its manufacturing process, in which Lister stated, on page 1, as follows: All manufacturing of large diameter chain (3/4" to 3") is conducted on the premises of Lister Chain & Forge, Division of Columbus McKinnon Corporation located at 3810 Loomis Trail Road, Blaine, Washington. . . . The only component[s] not manufactured at the Blaine facility are the studs, which are produced at Lister Bolt & Chain [Canada], utilizing U.S. manufactured steel provided by Lister Chain & Forge.