1175 Buford Highway. Suite 120
Suwanee, Georgia. 30024
www.goldsmithworks.com
770.831.1257 - 1.800.438.6894

Date/Report Number …..09-29-015-982 RK Item:  BENRUS EARLY VIETNAM ERA PROTOTYPE CASE W/NON MILITARY MOVEMENT AUTOMATIC W/NEW NOS CALENDAR LEATHER STRAPPED PX BX R&ER STRAPPED WATCHE. THREE STAR SELF WINDING [AUTOMATIC] evan.rankin@virgin.net

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GOLD FILLED Restored - Serviced THE FIRST BENRUS 3 STAR SINGLE CASE PROTOTYPE
THAT WON BENRUS THE FIRST VIETNAM US MILITARY CONTRACT 300,000 10800 WATCHES FOR MARINE CORP 1959 BENRUS THREE STAR SELF WINDING [AUTOMATIC]
THE DADDY TO THE THREE STAR MANUAL WIND PROTOTYPE SUBMITTED TO US MILITARY FOR   JUNGLE WARFARE CONTRACT 32 X 40  MM W/O CROWN ADDITIONAL INFORMATION IN THE FULL APPRAISAL.

INSURED APPRAISAL VALUE:  $499.00 W/STRAP     410.00 W/O STRAP


Reports are supplied at the request of the customer and it is for the customer's exclusive use. Reports express an opinion of the time of the examination of the jewelry. This report is for customers use only for the following two purposes, indicating estimated retail replacement value to obtain insurance coverage, or for the purpose of providing geological information. GoldSmith Works does not guarantee that the appraisal valuation will result in a sale at the price. Estimated retail replacement value is arrived after analyses of what the approximate high retail cash asking price is for labor, materials, and design. These prices may be substantially higher than actual transaction or warranty with regards to any item described in the report, since jewelry grading is not an exact science, this  report represent the best opinion of the company. GoldSmith Works is in no case responsible for differences that occur by repeated grading by other experts in the field and/or use of other standards, norms, methods or criteria other than those used by GoldSmith Works. GoldSmith Works is expressly held harmless by customers including, but with out limitation for any claims or actions that may arise out of negligence in connection with the preparation of this laboratory report, or actions based upon the customer's use of the report. The information on the carat weight, clarity grade, color grade on the report is approximate due to the limitations in jewelry grading. The item was tested, graded, and examined under 10x magnification using the techniques and equipment available to GoldSmith Works, including fully corrected triplet loupe, binocular microscope, master color comparison guides, diamond color comparison tools, electronic carat balance, non-contact optical measuring device, and ancillary instruments necessary at the time of Examination.


 

 

 

 

 



BENRUS 17J SINGLE CASE AUTOMATIC 1963 TO 66

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THIS BENRUS WATCH WAS ONE OF TWO PROTOTYPES THAT WON BENRUS
THE FIRST US MILITARY VIETNAM CONTRACT
300,000 FOR 10800 MARINE CORP WATCHES

SINCE ONLY ONE OF THREE OTHER SOURCES WHICH SUBMITTED THEIR PRODUCT FOR QUALIFICATION TESTING SUBMITTED A PRODUCT WHICH PASSED ALL THE REQUIREMENTS OF MIL-W-3818B AND WAS APPROVED FOR INCLUSION ON THE QUALIFIED PRODUCTS LIST, THE DETERMINATION BY THE CONTRACTING OFFICER THAT IT WAS IMPRACTICABLE TO OBTAIN COMPETITION, AND THAT A CONTRACT SHOULD BE NEGOTIATED WITH BENRUS,

THREE FIRMS SUBMITTED APPLICATIONS AND SAMPLES DURING 1963, NAMELY, BENRUS WATCH CO., INC., LONGINES-WITTNAUER WATCH CO., AND MATBEY-TISSOT WATCH CO., INC.

HOWEVER, BENRUS WATCH, INC., WAS THE ONLY SOURCE THAT SUCCESSFULLY MET THE REQUIREMENTS FOR APPROVAL. THEREFORE, THAT FIRM WAS FORMALLY NOTIFIED ON SEPTEMBER 16, 1963, THAT THE SAMPLES SUBMITTED WERE APPROVED AND THAT ITS PRODUCT WAS LISTED ON THE QUALIFIED PRODUCTS LIST FOR SPECIFICATION MIL-F-3818B. THE OTHER TWO SOURCES WERE NOTIFIED BY LETTER OF NOVEMBER 21, 1963, THAT THEIR SAMPLES DID NOT MEET MINIMUM SPECIFICATION REQUIREMENTS.

*******************************************************
GOLD FILLED
Restored - Serviced

THE FIRST BENRUS
3 STAR SINGLE CASE

DADDY TO
THE VIETNAM WAR
PROTOTYPE

THAT WON BENRUS
THE FIRST VIETNAM US MILITARY CONTRACT
300,000 10800 WATCHES FOR MARINE CORPI


1959
BENRUS

THREE STAR
SELF WINDING
[AUTOMATIC]

THE
DADDY
TO THE
THREE STAR
MANUAL WIND
PROTOTYPE
SUBMITTED TO US MILITARY
FOR
JUNGLE WARFARE CONTRACT

32 X 40  MM
W/O
CROWN

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vintage new MINT JB calendar strap
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COMPLETELY RESTORED AUTOMATIC

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DEPLOYMENT BUCKLE


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SINGLE CASE PROTOTYPE OF WHICH THE NEXT VERSION  WOULD BECOME THE BASE FOR ALL MILITARY WATCHES IN VIETNAM

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AUTOMATIC SELF WINDING WATCH
DESIGNED AND MANUFACTURED BY

[NOTE: NO MILITARY WATCH HAD AN AUTOMATIC]

BENRUS

RESTORED TO NEAR MINT CONDITION

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 BENRUS(
ETA 1256-47BF)

17J
SELF WINDING

WITH
JB ORIGINAL

LEATHER CALENDAR STRAP
WITH BOX

GOLD OVER STAINLESS
DEPLOYMENT BUCKLE

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BEFORE RESTORATION AFTER RESTORATION

THE DIAL IS RESTORED TO ORIGINAL CONDITION.
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THIS TYPE OF COLLECTIBLE IS WORTH MORE RESTORED

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(SAME MOVEMENT UTILIZED IN Girard-Perregaux)
(ETA 1256-47BF)
Features

automatic
sweep second
Data
17 jewels
f = 18000 A/h
power reserve 40h

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Founded in New York City in 1921, Benrus Watch Company was an American company created by three Romanian immigrant brothers. "BENRUS" was a combination of one of the brothers first and last names: BEN"jamin laz"RUS". by 1923, the Lazarus brothers acquired the trademark Benrus from the Swiss federal office for intellectual property. Originally the company watch headquarters were located in the Hippodrome building on 44th street in Manhattan were watches were "put together" and the bulk of the actual movement manufacturing in a Benrus factory in la Choux de Fond, Switzerland.

Due to the fact that all Swiss watches and parts were controlled by Swiss laws and cartels or combined companies, parts makers provided Benrus with parts and, in some circumstances ebauche - which they then assembled or upgraded. to overcome this fact and the fact that swiss parts and assembled watches were being penalized through US Customs duties, Benrus would found a factory in Waterbury CT where they made the cases for Benrus watches and then in late 1950 to early 1960, Benrus opened factories in France, St. Thomas and the Virgin Islands.


NOTE: During the Vietnam War, Benrus won a military Contract over Bulova and the rest of the US companies. For part of this contract, Benrus would buy Japanese Seiko Movements...

Production steadily expanded throughout the 1940's with a boost during WWII when Benrus manufactured watches for the various servicemen and woman who served as well as nurses and other professions. Like most other watch makers, timing devices for use in bombs and weapons were also produced.

By the 1950's, Benrus designers went to work fashioning top grade,luxurious watches in Gold and with Diamonds. Due to their strong relationship with the Swiss cartel, and their market share after the war, Benrus was able to invest in the latest high quality Swiss and German watch movements and ebauche movements.


Designs from 1947 to 1959 were the best ever completed by Benrus and Benrus watches from these same years are the most sought after by Collectors.

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NOTE THE SEAL AROUND CRYSTAL
SINGLE CASE W/BEZEL SYSTEM 1 THE SINGLE CASE W/BEZEL SYS 2
"LUGS ATTACHED TO SEPARATE BEZEL SLIP OVER CASE"


THE VIETNAM WAR SINGLE CASE SYSTEM

ONLY THE CRYSTAL IS NOT PART OF CASE

BENRUS BUILT 2 PROTOTYPE WATCH AND CASE DESIGNS
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SINGLE "PIE PAN " BEZEL WITH LUGS

1 THE BENRUS "PIE PAN" REQUIRED A CASE FOR MOVEMENT AND THEN A BEZEL WITH LUGS OVER CASE

2 THE BENRUS "DEEP DISH" CASE HAD LUGS 9ON THAT CASE AND ONLY REQUIRED A CRYSTAL TO LOCK IN THE DROPPED THROUGH TOP MOVEMENT.

SOME OF THESE DEEP DISH CASES HAD A ROUND BEZEL THAT LOCKED THE CRYSTAL TO CASE [WYLER DESIGN AND PATENT]

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SOLID STEEL DEEP DISH CASE NEEDS A TOP W/LUGS

THE BENRUS SYSTEM UTILIZED THE SEALING SINGLE CASE SYSTEMS THAT DATED FROM THOSE OF THE  WYLER WATCH COMPANY IN 1927. THE TECHNOLOGY, THEREFOR, WAS ALREADY IN THE "SYSTEM".

THE DESIGN MEANT THE ENTIRE WATCH MINUS CRYSTAL AND STRAP WAS ONE PIECE. YET THEY, BENRUS, DECIDED TO BUILD THEIR FIRST PROTOTYPE AS A PIE PAN  [ABOVE], WITH AN EXTERNAL BEZEL WITH LUGS [ABOVE]

AS YOU ARE FAMILIAR WITH WITH LIFE, THEN THINK.... HOW MANY COMPANIES WERE IN THE LOOP FOR A POSSIBLE  US MILITARY CONTRACT FOR WATCHES? THEY WERE ALL OVER THEMSELVES , SPYING AND VYING AND WONDERING WHAT CASE AND MOVEMENT AND COMPANY WOULD WIN.


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THE BEZEL SNAPS ONTO THE PIE PAN AND PUSHES DOWN CRYSTAL KKK

MOST OF THE WATCH COMPANIES WERE SWISS BASED, ALL WATCH COMPANIES WERE UNDER DURESS AND STRESS-; THOSE NOT IN THE USA WERE ALSO AWARE THEY WOULD HAVE TO SET UP A FACTORY IN THE US. EVEN IF JUST TO ASSEMBLE THE PARTS INTO WATCHES --A CERTAIN PERCENTAGE OF THE WORK HAD TO BE ACCOMPLISHED IN THE USA.

KNOWING THE USA AND THE FACTS OF A POSSIBLE END LESS AMOUNT OF WORK, THEY RUSHED TO OUT MANEUVER EACH OTHER.  THEY ALL KNEW THAT THE CONTRACT ON THE TABLE WAS FOR $300.000 AND THE WATCHES ONLY REQUIRED 7 JEWELS AND ALL IT HAD TO DO IS LAST TWO YEARS.

*** US BASED  TO REVCEIVE A US GOV CONTRACT YOU MUST
BE LOCATED IN THE USA AND A CERTAIN AMOUNT OF
PRODUCT BE ASSEMBLED IN THE USA.

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PROTOTYPE ONE NO LUGS ON CASE

SO THE BENRUS' "IDEA" [BENRUS TIME 1958-1963]  HAD ALREADY BEEN INITIATED 30 YEARS BEFORE [BY WYLER TIME 1927-1937]. YES, BUT WHY  TWO SEPARATE PROTOTYPES???


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AT THAT TIME BENRUS WAS ACTUALLY BASED OUTSIDE THE USA. IN FACT, LOOK AT WATCHES FROM WWII AND KOREA, BENRUS WAS THE LITTLE GUY. BUT HERE IT WAS, A 10800 PIECE MARINE CORP CONTRACT WITH 300.000 IN CASH. AND, THE WATCHES COULD BE CHEAPLY MADE [NOT MEANT AS CHEAP GOODS]. BUT IN THE FRONT OF THE RUNNING  WAS BULOVA! JUST BASED ON THEIR PARTICIPANT IN WWII AND KOREA, BULOVA WAS THE ONE TO WATCH.


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SO, AS ABOVE, THE MOVEMENT,  DIAL MOUNTED , THEN DROPPED IN CASE, THE CRYSTAL OVER THEM ALL, THEN A SEPARATE BEZEL WITH LUGS FITS OVER THE PIE OF TIME. A FANTASTIC SYSTEM.. NO?? NO WEAK CASE BACK!
LOOK AT THE ABOVE ITEMS. SO BULOVA BEGAN SELLING SELF WINDING AND CROWN WINDING VERSIONS. LIKE THIS ONE, YOURS..... AND SOON THE WORDS WAS BULOVA WAS SUBMITTING A "PIE PAN DESIGN" . WHILE THE  FACT IS THIS BENRUS IS SELF WINDING WATCH, THE MANUAL WINDING WATCH FOLLOWED AND BENRUS HAD DEALERS DOUBLE THEIR ATTENTION TO ANY PROBLEMS WITH THE WATCH AND MOVEMENT. MIND YOU THAT ONLY 7 JEWEL MOVEMENTS WERE REQUIRED. YOU COULD HAVE MORE IF YOU W ANTED..

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. THE GOVERNMENT HAS ALREADY BUILT THE WATCH AND YOU GET THE BLUE PRINTS. SO,YOU WERE GIVEN COMPLETE STATS, FEATURES, MEASUREMENTS AND BASIC MOVEMENTS IN ADVANCE YET, AS TO CASE AND MOVEMENT, WELL THAT WAS WHERE THE MONEY WAS AND THE AREA YOU COULD ALTER. THE FACT WAS IT
WOULD BE SINGLE CASE W/NO CASE BACK AND THE MOVEMENT A MIDDLE GRADE ABOVE THE 7 JEWELS.

WELL, WHEN THE TIME CAME TO SUBMIT THE  PROTOTYPE, BENRUS,  THREE TIMES,  SUBMITTED SEVERAL COMPLETE WATCHES ALONG WITH REAL DATA SHOWING HOW WELL BOTH PROTOTYPES HAD RUN IN THE PUBLIC FOR 3 YEARS

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NOTE THE BOTTOM CASE IS COMPLETE. THEN
MOVEMENT     CRYSTAL   LOCKING BEZEL RING

OTHER IMPORTANT FACTORS, IT MADE NO DIFFERENCE WHAT YOU BUILT. AND THE MOVEMENT COULD HAVE JUST 7 JEWELS.THE ONLY THING THAT MATTERED AS FAR AS DESIGN AND MOVEMENT WAS THAT THE WATCH HAD TO LAST 2 YEARS WITH NO SERVICE. LIKE THE PLASTIC THROW-AWAYS THAT WERE BUILT TOWARDS THE END, IT HAD TO OPERATE WITH NO MAINTENANCE OR REPAIR FOR TWO YEARS IN THE VIETNAM JUNGLES, RICE PATTIES, MOUNTAINS, FROM EXTREME WET TO EXTREME DRY AND HOT

BULOVA WAS THE REAL THREAT. WHILE MOST WATCH COMP VIEWED THE DOCS RELEASED AS TO WHAT THE BASICS WERE, SUCH AS SIZE STRAP CRYSTAL AND DIAL, IT WAS UP TO THE WATCH COMPANY TO HAVE IT RIGHT.

OWING TWO MAJOR FACTS, BENRUS BUILT THE WATCH BEING OFFERED HERE AS PROTOTYPE . TO THE WATCH INDUSTRY BACK THEN, WITH SPYS AND LOOK OUTS AND.. ALL THE OTHERS SIMPLY THOUGHT SUBMITTED WATCHES [LONGINES +]

.... NOTHING THAT WAS TRULY GREAT FOR AN EXTREMELY WET COUNTRY.

BULOVA SUBMITTED A DESIGN AT THE FIRST GO BUT FOR SOME REASON NOT THE FINALS

BENRUS LEAD ALL TO BELIEVE THIS WAS [NOT AUTOMATIC]  THE WATCH THAT WAS BEING OFFERED TO THE US GOVERNMENT FOR UPCOMING VIETNAM MILITARY WATCHES.

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LOOK, MORE THAN BENRUS AND OPPOSING FOE BULOVA WOULD SUBMIT APPLICATIONSAND DESIGNS TO MEET WITH US MILITARY REQUIREMENTS. SOME OF THE COMPANIES DECIDED THEY WOULD LEASE OR BUILD A FACTORY IN THE US. AS 4 EVER, JUST HAVING A BUSINESS IN THE USA WITH A CERTAIN PERCENTAGE OF PRODUCT BUILT, MADE YOU ELIGIBLE, YET, MOST OF THESE COMPANIES THAT WOULD APPLY NEVER USED A SINGLE CASE SYSTEM. READ THE ANSWER TO BULOVA DOWN BELOW,

BENRUS GROSSED 300.000 FOR THE FIRST 10,400 WATCHES WHILE   BULOVA PROTESTED THE LOSS
.
GOOGLE  "GOLDSMITHWORKS  BULOVA PROTEST BENRUS"
UPDATE ADDED AT BOTTOM

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BETTER YET AT BOTTOM

THE PURE  SINGLE CASE BENRUS SYSTEM DATES FROM 1959 THROUGH 1965- THOUGH  IT'S DESIGN  WOULD CONTINUE UNTIL 1971!.   THE SINGLE CASED BENRUS HAD A ONE PIECE CASE, A DROP IN MOVEMENT WITH SPLIT STEM & SEALED LONG STEM TUBE CROWN AND WAS SEALED BY THE CRYSTAL ALONE.


[YES, IT WAS THE WYLER SYSTEM HIJACKED BY BENRUS!]

BENRUS DESIGNED THIS SYSTEM BY COPYING THE WYLER SINGLE CASE SYSTEM WITH OUT THE WYLER OUTER BEZEL. THOUGH MANY OTHER    MANUFACTURERS HAD PRODUCED SINGLE CASE DESIGNS, THE REASON WHY BENRUS CREATED THIS SYSTEM WAS THE 1960 RUMERS OF LARGE US GOVERNMENT WATCH CONTRACTS FOR THE UPCOMING VIETNAM WAR. WHEN THE US GOVERMENT RELEASED SPECIFICATIONS IN 1961 BENRUS HAD ALREADY RELEASED A WATCH TO THE PUBLIC WITH HALF THE SPECS.
NOTE THE SEAL AROUND CRYSTAL


THE BENRUS THREESTAR X 1


A 1950 WATERLESS  4 JAR CLEANING SYSTEM W/HEATDRY
2  ULTRASONIC 4 STAGE CLEANING SYSTEMS

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ORIGINAL JB BOX WITH GOLD AND BLACK PANELS

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BENRUS CF1- 47BF-17
ETA 1256
BASE
(
Girard-Perregaux)

(ETA 1256-47BF)
Features

automatic
sweep second
Data
17 jewels
f = 18000 A/h
power reserve 40h

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MIXING AF LUMINOVA

HANDS FOR 6 TIME PIECES DRYING

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THE FOLLOWING IS THE US GOVERNMENT REPLY TO BULOVA. THIS WILL BE PART OF APPRAISAL --ALLOW SEVERAL WEEKS FOR LINK-- IT HAS THE IMPORTANT INFORMATION AS TO THIS VERY BENRUS.

THE FOLLOWING IS THE US GOVERNME NT REPLY TO BULOVA. THIS WILL BE PART OF APPRAISAL --ALLOW SEVERAL WEEKS FOR LINK-- IT HAS THE IMPORTANT INFORMATION AS TO THIS VERY BENRUS.
B-153564, MAY 4, 1964
TO BULOVA WATCH COMPANY, INC.:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 20, 1964, PROTESTING THE AWARD OF A CONTRACT TO BENRUS WATCH COMPANY UNDER REQUEST FOR PROPOSAL NO. AMC/A/36-038-64-490/NS), DATED FEBRUARY 7, 1964. THE RECORD SHOWS THAT IT WAS DETERMINED BY REPRESENTATIVES OF THE AIR FORCE, NAVY AND ARMY, THAT SPECIFICATION MIL-W-3818A, DATED MARCH 12, 1956, REQUIRED REVISION TO ACCOMPLISH THE FOLLOWING RESULTS:

A. REDUCE THE VARIETY OF GRADES AND TYPES OF WATCHES.
B. ASSURE CONSISTENT QUALITY OF ITEMS.
C. ELIMINATE TESTING REQUIREMENTS OF ONE YEAR AND SUBSTITUTE IN LIEU THEREOF A GUARANTEE PROVISION.
D. INCORPORATE A NEW CASE DESIGN.

ACCORDINGLY, THE SPECIFICATION WAS FORMALLY REVISED ON OCTOBER 17, 1962, AND IS IDENTIFIED AS MIL-W-3818B.

SUBSEQUENT TO THE APPROVAL OF SPECIFICATION MIL-W-3818B, ALL SOURCES ON THE PREVIOUS QUALIFIED PRODUCTS LIST, UNDER SPECIFICATION MIL-W 3818A, WERE INVITED BY LETTER DATED DECEMBER 6, 1962, TO MAKE APPLICATION FOR THE SUBMISSION OF THEIR PRODUCT OF FRANKFORD ARSENAL FOR QUALIFICATION TESTING. UPON RECEIPT AND APPROVAL OF THE APPLICATION AS REQUIRED BY PARAGRAPH 104 OF THE PAMPHLET ENTITLED “PROVISIONS GOVERNING QUALIFICATION,” SAMPLES WOULD BE AUTHORIZED TO BE SUBMITTED. THREE FIRMS SUBMITTED APPLICATIONS AND SAMPLES DURING 1963, NAMELY, BENRUS WATCH CO., INC., LONGINES-WITTNAUER WATCH CO., AND MATBEY-TISSOT WATCH CO., INC.

HOWEVER, BENRUS WATCH CO., INC., WAS THE ONLY SOURCE THAT SUCCESSFULLY MET THE REQUIREMENTS FOR APPROVAL. THEREFORE, THAT FIRM WAS FORMALLY NOTIFIED ON SEPTEMBER 16, 1963, THAT THE SAMPLES SUBMITTED WERE APPROVED AND THAT ITS PRODUCT WAS LISTED ON THE QUALIFIED PRODUCTS LIST FOR SPECIFICATION MIL-F-3818B. THE OTHER TWO SOURCES WERE NOTIFIED BY LETTER OF NOVEMBER 21, 1963, THAT THEIR SAMPLES DID NOT MEET MINIMUM SPECIFICATION REQUIREMENTS.

ON THE BASIS OF MILITARY INTERDEPARTMENTAL PURCHASE REQUESTS FROM THE MARINE CORPS FOR A TOTAL OF 10,849 WATCHES, THE CONTRACTING OFFICER EXECUTED A DETERMINATION AND FINDINGS DATED FEBRUARY 2, 1964, AUTHORIZING NEGOTIATION UNDER THE PROVISIONS OF 10 U.S.C. 2304/A) (10) AND ASPR 3.210.2 PROMISED ON THE CIRCUMSTANCES REPORTED AS FOLLOWS:

“A. THIS WATCH IS A QUALIFIED PRODUCT AND THE TIME REQUIRED FOR TESTING WOULD UNDULY DELAY DELIVERIES.

“B. THE INTEREST OF THE GOVERNMENT REQUIRES ASSURANCE PRIOR TO AWARD THAT THE PRODUCT IS SATISFACTORY FOR ITS INTENDED USE AND NO OTHER MEANS OF QUALITY ASSURANCE IS AVAILABLE.

“C. AMPLE SOLICITATION AND OPPORTUNITY WAS AFFORDED THE CLOCK AND WATCH INDUSTRIES, RESULTING IN ONLY ONE QUALIFIED PRODUCT, NAMELY, BENRUS WATCH CO.’

THE REQUEST FOR PROPOSAL WAS ISSUED ON FEBRUARY 7, 1964, WITH A CLOSING DATE OF FEBRUARY 24, 1964, TO BENRUS WATCH COMPANY, AS A SOLE SOURCE PREMISED ON THE FACTS SHOWN ABOVE. BENRUS QUOTED A UNIT PRICE OF $28.28 EACH FOR A QUANTITY OF 10,849 WRIST WATCHES OR A TOTAL COST OF $306,809.72. ON FEBRUARY 20, 1964, AN AMENDMENT WAS ISSUED EXTENDING THE CLOSING DATE TO FEBRUARY 27, 1964. THE PROCUREMENT ACTION WAS SYNOPSIZES, FOR SUBCONTRACTING ONLY, IN THE COMMERCE BUSINESS DAILY DATED FEBRUARY 17, 1964. AT YOUR REQUEST, YOU WERE FURNISHED A COPY OF THE REQUEST FOR PROPOSAL ON FEBRUARY 13, 1964.

YOU ALLEGE, IN EFFECT, THAT FRANKFORD ARSENAL IS ATTEMPTING TO CIRCUMVENT CURRENT REGULATIONS IN THE AREA OF COMPETITION AND METHOD OF PROCUREMENT AND HAS FAILED TO CLARIFY AMBIGUITIES IN THE SPECIFICATION, PARTICULARLY WITH REFERENCE TO THE GUARANTEE PROVISION AS SET FORTH IN PARAGRAPH 3.21 OF SPECIFICATION MIL-W-3818B, DATED OCTOBER 17, 1962.

YOU ALLEGE SPECIFICALLY THAT FRANKFORD ARSENAL, WITH KNOWLEDGE OF YOUR INTEREST IN THE PROCUREMENT OF BACK-TYPE WATCHES, CIRCUMVENTED PROCUREMENT REGULATIONS BY NOT OBTAINING COMPETITION.

THE RECORD SHOWS YOU WERE AFFORDED AMPLE TIME TO SUBMIT YOUR PRODUCT FOR QUALIFICATION TESTING AND POSSIBLE INCLUSION ON THE QUALIFIED PRODUCTS LIST. HOWEVER, YOU DID NOT SUBMIT YOUR PRODUCT UNTIL FEBRUARY 13, 1964, A LAPSE OF 14 MONTHS FROM THE DATE APPLICATIONS WERE ORIGINALLY REQUESTED. THE PRODUCT YOU SUBMITTED WAS REJECTED ON MARCH 11, 1964, FOR THE REASON THAT IT FAILED THE SHOCK TEST PERFORMANCE PRESCRIBED IN PARAGRAPH 4.8.9 OF SPECIFICATION MIL-W 3818B IN THAT OVER A PERIOD OF 20 HOURS THE WATCH GAINED 1 HOUR AND 22 MINUTES.

THIS FAILURE WAS CONSIDERED A SUFFICIENT CAUSE TO REJECT YOUR PRODUCT AS NOT QUALIFYING FOR INCLUSION ON THE QUALIFIED PRODUCTS LIST. SINCE ONLY ONE OF THREE OTHER SOURCES WHICH SUBMITTED THEIR PRODUCT FOR QUALIFICATION TESTING SUBMITTED A PRODUCT WHICH PASSED ALL THE REQUIREMENTS OF MIL-W-3818B AND WAS APPROVED FOR INCLUSION ON THE QUALIFIED PRODUCTS LIST, THE DETERMINATION BY THE CONTRACTING OFFICER THAT IT WAS IMPRACTICABLE TO OBTAIN COMPETITION, AND THAT A CONTRACT SHOULD BE NEGOTIATED WITH BENRUS, APPEARS TO HAVE BEEN PROPER.

YOU FURTHER ALLEGE THAT THE PROPOSED PROCUREMENT SHOULD BE CANCELLED AND THAT THE GOVERNMENT SHOULD PROCEED ON AN ADVERTISED PROCUREMENT TO ASSURE ADEQUATE COMPETITION.

AS INDICATED ABOVE, COMPETITION COULD NOT BE ATTAINED BECAUSE ONLY ONE SOURCE WAS ON THE QUALIFIED PRODUCTS LIST AT THE TIME OF THE INITIATION OF THE PROCUREMENT ACTION, AND SO FAR AS WE ARE ADVISED NO OTHER PRODUCT HAS SINCE BEEN QUALIFIED. IN OUR DECISION OF AUGUST 9, 1961, 41 COMP. GEN. 93, IT WAS HELD THAT WHERE THERE IS ONLY A SINGLE SOURCE LISTED ON THE QUALIFIED PRODUCTS LIST, THE PROPER METHOD OF PROCUREMENT IS NEGOTIATION IN LIEU OF FORMAL ADVERTISING. WE SEE NO VALID BASIS UPON WHICH A DIFFERENT CONCLUSION MAY BE REACHED IN THE INSTANT CASE.

IN ADDITION, YOU ALLEGE THAT THE GUARANTEE PROVISION OF PARAGRAPH 3.21 OF MIL-W-38188 IS UNREASONABLE IN THAT IT REQUIRES THE CONTRACTOR TO BE LIABLE FOR THE REPAIR OF WATCHES THAT FAIL TO MEET ALL SPECIFICATIONS FOR A PERIOD OF TWO YEARS, AFTER ACCEPTANCE BY THE GOVERNMENT, WITHOUT ANY LIMITATION OF REPAIR RESPONSIBILITY WHATSOEVER.

SINCE THE THREE SOURCES THAT SUBMITTED THEIR PRODUCTS FOR TESTING DID NOT TAKE ANY EXCEPTION, OR REQUIRE INTERPRETATION AS TO THE GUARANTEE PROVISION IN THE SPECIFICATION, IT APPEARS THAT THOSE FIRMS WERE READY TO MEET SUCH PROVISION AND THAT THE PROVISION WAS CONSIDERED REASONABLE. ANY EVENT IT DOES NOT APPEAR THAT THE GUARANTEE PROVISION IS GERMANE TO YOUR PROTEST OR TO YOUR FAILURE TO HAVE A WATCH APPROVED FOR INCLUSION ON THE LIST.

AS TO THE ALLEGATION THAT BENRUS WATCH COMPANY IS NOT A MANUFACTURER OF WATCHES BUT ONLY IMPORTS CASES AND SELLS WATCH MOVEMENTS FROM FOREIGN SOURCES, WE ARE ADVISED THAT BENRUS POSSESSES MANUFACTURING FACILITIES IN THE UNITED STATES AND SWITZERLAND WHICH ARE UTILIZED IN THE PRODUCTION AND ASSEMBLY OF WATCHES AND, THEREFORE, QUALIFIES AS A MANUFACTURER UNDER ASPR 12-603.1.

THE BENRUS PROPOSAL SHOWS THAT IT IMPORTS THE MOVEMENT AND DIAL SETTING, DIAL STEM AND SPRING BARS, AND THAT THE CASE, CROWN, ATTACHMENTS, PACKING MATERIAL AND JEWEL BEARINGS (TURTLE MOUNTAIN ORDNANCE PLANT) ARE ALL DOMESTICALLY PRODUCED. ITS COST DATA INDICATES THAT THE COST OF THE DOMESTIC COMPONENTS IS CONSIDERABLY IN EXCESS OF 50 PERCENT OF THE COST OF ALL COMPONENTS, AND THEREFORE THE ITEM MUST BE CONSIDERED A DOMESTIC SOURCE AND PRODUCT UNDER ASPR 6-101 (D).

IN THE CIRCUMSTANCES WE FIND NO VALID BASIS FOR YOUR PROTEST, AND IT IS THEREFORE DENIED