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B-194580 1 (1979-07-31)

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                      0 THE  COMPTROLLER GENERAL
DECISION *       OF THE UNITED STATES
                        WASHINGTON, DC. 20548


FILE:       B-194580          OATE:July 31, 1979

MATTER  OF:     St. Joseph Telephone &        Ozfi$
                Telegraph Company

DIGEST:

1.   Allegation that agency's proposed purchase
     of telephone equipment is contrary to Office
     of Management and Budget (OMB) Circular A-76,
     Office of Telecommunications Policy (OTP)
     Circular No. 13 and Department of Defense
     Directive 4100.15 is not for consideration
     under GAO Bid Protest Procedures because
     determination is matter of Executive policy.

2.   Agency's determination to purchase telephone
     equipment and not to consider lease of equip-
     ment is not unduly restrictive of competition
     where Government ownership and maintenance
     is necessary in case of natural disaster
     (flood conditions) or national emergency.


     St. Joseph Telephone & Telegraph Company (St. Joseph)
protests any award of a contract under invitation for-
bids (IFB) DACW01-79-B-0085, issued by the Corps of
Engineers. The IFB requested bids for the purchase of
a Private Automatic Branch Exchange (PABX) Telephone System
for the Jim Woodruff Powerhouse, Florida. Bid opening has
been postponed pending -resolution-of this'protest.

     St. Joseph maintains that the IFB unduly restricts
competition by excluding firms, like itself, which would
offer to lease and maintain, rather than sell, the equip-
ment to the Corps.  St. Joseph also contends that the
Corps' determination to buy the equipment (Corps ownership)
is inconsistent with the policy requirements of Office
of Management and Budget (OMB) Circular A-76, Department
of Defense (DOD) Directive 4100.15, and Office of Tele-
communications Policy (OTP) Circular No. 13. For the
following reasons we dismiss the objection based on the
policy requirements of the referenced circulars and
directive and deny the remainder of the protest.


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