B-161085, SEP. 15, 1967
Highlights
ALTHOUGH TWO FIRMS MAY BE LEGALLY SEPARATE ENTITIES DOES NOT MEAN THAT IN DETERMINING RESPONSIBILITY OF ONE IT IS NOT PROPER TO CONSIDER PERFORMANCE OF THE OTHER. THE PRE-AWARD SURVEYS WHICH WERE THE BASIS FOR SUCH REJECTIONS LINKED FRANK AND WARREN WITH YOUR COMPANY. THE SMALL BUSINESS ADMINISTRATION IS SATISFIED AS TO THE SEPARATE IDENTITY OF THE TWO COMPANIES. DOES NOT NECESSARILY MEAN THAT IN DETERMINING THE RESPONSIBILITY OF ONE IT IS NOT PROPER TO CONSIDER THE PERFORMANCE OF THE OTHER. THE DETERMINATION OF A BIDDER'S RESPONSIBILITY IS PRIMARILY FOR THE ADMINISTRATIVE AGENCY CONCERNED SUBJECT TO THE AUTHORITY OF THE SMALL BUSINESS ADMINISTRATION TO ISSUE A CERTIFICATE OF COMPETENCY.
B-161085, SEP. 15, 1967
BIDDERS - RESPONSIBILITY - TWO FIRMS DECISION TO HI-TORQUE MFG. CO., INC., CONCERNING DECISION OF JULY 31, 1967, RE REJECTION OF BIDS FOR NON-RESPONSIBILITY. ALTHOUGH TWO FIRMS MAY BE LEGALLY SEPARATE ENTITIES DOES NOT MEAN THAT IN DETERMINING RESPONSIBILITY OF ONE IT IS NOT PROPER TO CONSIDER PERFORMANCE OF THE OTHER, DEPENDING UPON RELATIONSHIP BETWEEN THE TWO FIRMS AND ITS EFFECT UPON PERFORMANCE. MATTER OF RESPONSIBILITY SHOULD BE TAKEN UP WITH SBA.
TO HI-TORQUE MFG. CO., INC.:
YOUR LETTER OF AUGUST 23, 1967, REFERS TO OUR DECISION OF JULY 31, 1967, IN WHICH WE CONSIDERED, AMONG OTHERS, THE REJECTION FOR NONRESPONSIBILITY OF YOUR BIDS SUBMITTED UNDER INVITATIONS FOR BIDS NOS. N00104-67-B-1014 AND N00156-67-B-0449.
THE PRE-AWARD SURVEYS WHICH WERE THE BASIS FOR SUCH REJECTIONS LINKED FRANK AND WARREN WITH YOUR COMPANY. YOU OBJECT TO THIS AND STATE THAT AFTER AN INVESTIGATION, THE SMALL BUSINESS ADMINISTRATION IS SATISFIED AS TO THE SEPARATE IDENTITY OF THE TWO COMPANIES.
THE FACT THAT TWO FIRMS MAY BE LEGALLY SEPARATE ENTITIES, DOES NOT NECESSARILY MEAN THAT IN DETERMINING THE RESPONSIBILITY OF ONE IT IS NOT PROPER TO CONSIDER THE PERFORMANCE OF THE OTHER, DEPENDING UPON THE RELATIONSHIP BETWEEN THE TWO FIRMS AND ITS EFFECT UPON THE PERFORMANCE OF BOTH. IN ANY CASE, AS WE NOTED IN OUR EARLIER DECISION, THE DETERMINATION OF A BIDDER'S RESPONSIBILITY IS PRIMARILY FOR THE ADMINISTRATIVE AGENCY CONCERNED SUBJECT TO THE AUTHORITY OF THE SMALL BUSINESS ADMINISTRATION TO ISSUE A CERTIFICATE OF COMPETENCY. WE SUGGEST, THEREFORE, THAT THE MATTER OF YOUR RESPONSIBILITY WITH RESPECT TO A GIVEN PROCUREMENT SHOULD BE TAKEN UP WITH THE ADMINISTRATIVE AGENCY OR THE SMALL BUSINESS ADMINISTRATION.