Review of Contracts Awarded to Raycomm, Inc., Freehold, New Jersey, by the Army Electronics Command, Fort Monmouth, New Jersey

The validity of allegations that there were irregularities in awarding three Army contracts to Raycomm, Inc., was investigated. Requests for the proposals for the contracts awarded in 1971, 1973, and 1975 listed the type of software products and technical services required and contained estimates of the number of hours of labor by category required to provide these products and services during the period of the contracts. The best and final offers from each of the competing firms were evaluated and preaward surveys were made at several companies that submitted the lowest offers to ascertain their competency to perform the required work. In each case, Raycomm Industries, Inc., made the lowest final offer and was awarded the contract.

Review of the procedures followed in awarding the three contracts did not disclose any inconsistencies with the Armed Services Procurement Regulation. The contracts were awarded to the lowest offeror in accordance with criteria specified in the requests for proposals. Although it is true that due to the labor mix and related pricing of the orders actually placed subsequent to contract award, the total work ordered would have cost less based on the price quotations of the unsuccessful bidders, the contract was based on the lowest dollar value for the total estimated hours for all categories of labor to be provided, as shown in the solicitations.