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B-213030, SEP 21, 1983

B-213030 Sep 21, 1983
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FACT THAT FIRM IS IN BANKRUPTCY PROCEEDINGS DOES NOT NECESSITATE A FINDING OF NONRESPONSIBILITY. AMEDCO ALLEGES THAT THE TWO FIRMS HAVE FILED FOR BANKRUPTCY AND THAT THEIR FINANCIAL SITUATION WILL ADVERSELY AFFECT THEIR ABILITY TO MEET THE REQUIREMENTS OF THE CONTRACT. A LOW BIDDER'S ABILITY TO MEET CONTRACT REQUIREMENTS IS A MATTER OF RESPONSIBILITY. THAT A FIRM NEED NOT BE FOUND NONRESPONSIBLE MERELY BECAUSE IT IS UNDERGOING BANKRUPTCY PROCEEDINGS. THE PROTEST IS DISMISSED.

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B-213030, SEP 21, 1983

DIGEST: GAO DOES NOT REVIEW AFFIRMATIVE DETERMINATIONS OF RESPONSIBILITY EXCEPT IN LIMITED CIRCUMSTANCES NOT PRESENT HERE. FACT THAT FIRM IS IN BANKRUPTCY PROCEEDINGS DOES NOT NECESSITATE A FINDING OF NONRESPONSIBILITY.

AMEDCO HEALTH CARE:

AMEDCO HEALTH CARE (AMEDCO) PROTESTS ANY AWARD TO EITHER OF THE TWO LOW BIDDERS UNDER SOLICITATION NO. DLA 120-83-R-0717 ISSUED BY THE DEFENSE LOGISTICS AGENCY. AMEDCO ALLEGES THAT THE TWO FIRMS HAVE FILED FOR BANKRUPTCY AND THAT THEIR FINANCIAL SITUATION WILL ADVERSELY AFFECT THEIR ABILITY TO MEET THE REQUIREMENTS OF THE CONTRACT. WE DISMISS THE PROTEST.

A LOW BIDDER'S ABILITY TO MEET CONTRACT REQUIREMENTS IS A MATTER OF RESPONSIBILITY, WHICH MUST BE DETERMINED BY THE CONTRACTING OFFICER PRIOR TO AWARD. WE DO NOT REVIEW AFFIRMATIVE DETERMINATIONS OF RESPONSIBILITY EXCEPT IN LIMITED CIRCUMSTANCES NOT PRESENT HERE. MORSE DIVING EQUIPMENT COMPANY, INC., B-210025, JANUARY 11, 1983, 83-1 CPD 28. WE POINT OUT, HOWEVER, THAT A FIRM NEED NOT BE FOUND NONRESPONSIBLE MERELY BECAUSE IT IS UNDERGOING BANKRUPTCY PROCEEDINGS. MID AMERICA MOVERS, INC., B-201740, FEBRUARY 9, 1981, 81-1 CPD 84.

THE PROTEST IS DISMISSED.

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Edward (Ed) Goldstein
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