B-183247, MAY 13, 1975
Highlights
CLAIM FOR EXPENSES ALLEGEDLY INCURRED IN ANTICIPATION OF CONTRACT WITH EGYPTIAN GOVERNMENT FOR RECONSTRUCTION OF SUEZ CANAL ON BASIS THAT CONTRACT WAS GIVEN TO ANOTHER FIRM BY UNITED STATES WITHOUT CLAIMANT BEING PROVIDED OPPORTUNITY TO BID IS DENIED. SINCE CONTRACT WAS EXISTING TERM CONTRACT WHICH OBVIATED NEED FOR COMPETITIVE BIDDING ON PROJECT. INC.: THIS DECISION IS IN RESPONSE TO REQUEST BY INTERNATIONAL EXPLOSIVE SERVICES. WAS PRECLUDED FROM ENTERING INTO COMMERCIAL ARRANGEMENTS WITH THE GOVERNMENT OF EGYPT WHEN THE UNITED STATES GOVERNMENT DECIDED TO PERFORM THESE FUNCTIONS AT UNITED STATES' EXPENSE. THE TRANSPORTATION AND CLAIMS DIVISION DISALLOWED THE CLAIM ON THE GROUND THERE WAS NO LEGAL BASIS FOR UNITED STATES LIABILITY.
B-183247, MAY 13, 1975
CLAIM FOR EXPENSES ALLEGEDLY INCURRED IN ANTICIPATION OF CONTRACT WITH EGYPTIAN GOVERNMENT FOR RECONSTRUCTION OF SUEZ CANAL ON BASIS THAT CONTRACT WAS GIVEN TO ANOTHER FIRM BY UNITED STATES WITHOUT CLAIMANT BEING PROVIDED OPPORTUNITY TO BID IS DENIED, SINCE CONTRACT WAS EXISTING TERM CONTRACT WHICH OBVIATED NEED FOR COMPETITIVE BIDDING ON PROJECT.
INTERNATIONAL EXPLOSIVE SERVICES, INC.:
THIS DECISION IS IN RESPONSE TO REQUEST BY INTERNATIONAL EXPLOSIVE SERVICES, INC. (IES), FOR RECONSIDERATION OF CLAIM NO. Z-2563200 IN THE AMOUNT OF $53,928.77 PLUS LATE CHARGES FOR EXPENSES ALLEGEDLY INCURRED IN CONNECTION WITH A PROPOSED PROJECT FOR THE RECONSTRUCTION OF THE SUEZ CANAL.
IES INITIALLY BASED ITS CLAIM ON THE FACT THAT IT ATTEMPTED TO SECURE PARTICIPATION AS A PRIVATE CONTRACTOR IN THE REHABILITATION AND RECONSTRUCTION PROJECT, BUT WAS PRECLUDED FROM ENTERING INTO COMMERCIAL ARRANGEMENTS WITH THE GOVERNMENT OF EGYPT WHEN THE UNITED STATES GOVERNMENT DECIDED TO PERFORM THESE FUNCTIONS AT UNITED STATES' EXPENSE. THE TRANSPORTATION AND CLAIMS DIVISION DISALLOWED THE CLAIM ON THE GROUND THERE WAS NO LEGAL BASIS FOR UNITED STATES LIABILITY.
BY A LETTER OF FEBRUARY 3, 1975, IES STATED THAT IT WAS IN ACCORD WITH THE UNITED STATES GOVERNMENT'S POLICY OF PROVIDING THE SERVICE TO EGYPT AND IT INDICATED THAT THE CLAIM IS BASED ON THE FACT THAT THE WORK WAS GIVEN TO MURPHY PACIFIC MARINE SALVAGE CO. (MURPHY) BY THE UNITED STATES WITHOUT IES BEING PROVIDED AN OPPORTUNITY TO BID. HOWEVER, THE UNITED STATES HAD AN EXISTING TERM CONTRACT (N00024-71-C 0234) WITH MURPHY FOR THE SERVICES CONTEMPLATED IN THE SUEZ CANAL. ARTICLE "I," SECTION "C," OF THE CONTRACT STATES:
"*** THIS CONTRACT ENVISIONS SERVICES ALONG AND OFF THE EAST COAST OF THE UNITED STATES AND IN THE GULF OF MEXICO AND THE CARIBBEAN AREAS; AND ELSEWHERE, INCLUDING WAR ZONES, AS APPROVED BY THE SUPERVISOR OF SALVAGE."
THE CONTRACT WITH MURPHY OBVIATED THE NEED FOR COMPETITIVE BIDDING ON THE PROJECT.
ACCORDINGLY, THE DENIAL OF THE CLAIM BY THE TRANSPORTATION AND CLAIMS DIVISION IS SUSTAINED.