ML20128L124
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MAR 19 1384 u,
-The Honorable Waltsr E. Fauntroy_
(United States House of Representatives Washington D.C.-
20515.
Dear'Congressk.an Jauntroy:
I am pleased ;to respond :to your Jebruary 13, 1984 request for it.fomat ion regarding.the-U.S. Nuclear ' Regulatory Commission's (NRC) cont rac* w.'ith layloe Associates for. stenographic reporting services.
~Specifically, ynu asked.whether NRC intends to exercise its optior, to e>1end the-term of our contract with.ayloe Associates, Before an optior, may he T
exercised, the Contracting Officer most determine that exercise of the option is the'most advantageous method of fulfilling the government's need.
.Frocurement regulations specify that price must be the primary factor in
- maki ng : thi s. dete rmi r.a ti on. 'Ouality of service of an incumbent cor..roctor may.
not be considered.
-Iniseptes.ber 1983, we conducted an. informal market survey of prices _ paid by
~six-other government agencies for similar services to determine whether we could anticipate receiving more; advantageous pricing 'by competine the requirement.- 0ur survey indicated that NRC.was generally paying r.are for
-.these services -than other agencies, particularly since NRC reimburses travel-costs _ separately and the other agencies surveyed include such cnsts in their per page-price..The survey was. made using the basic contract yea nrices.
The' Tayloe prices for the ' option year include.a 7.5 percent increase, exclusive of reimbursable travel costs.
Based on the results of nur survey. the l determination-required by the Federal Government Regulations that tne option
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year prices were?better than. prices available.in the market coulc not be made. : Consequently, the' option year under the Tayloe contract couid not be
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exercised. ~
If we can provide further information, please let me know.
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Sincerely, Oriisnd S#
pauida NOUT Patricia G. Iorry, Director Office of Administration 8505310291 841115
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RILEY84-734
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