A-21012, MARCH 5, 1928, 7 COMP. GEN. 547

A-21012: Mar 5, 1928

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ADVERTISING - DEBARMENT OF BIDDERS AS A GENERAL RULE THERE IS NO AUTHORITY FOR THE DEBARMENT OF BIDDERS AND ALL BIDS SHOULD BE RECEIVED AND GIVEN CONSIDERATION UPON AN EQUAL BASIS. ARE INTENDED TO PROTECT THE UNITED STATES FROM ANY LOSS OR DAMAGE THAT MIGHT BE SUSTAINED BECAUSE OF DEFAULT OR FAILURE ON THE PART OF THE CONTRACTOR. 1928: I HAVE YOUR LETTER OF FEBRUARY 3. AS A GENERAL RULE THERE IS NO AUTHORITY FOR THE DEBARMENT OF BIDDERS AND ALL BIDS SHOULD BE RECEIVED AND GIVEN CONSIDERATION ON AN EQUAL BASIS. THE FACT THAT A BIDDER IN A PREVIOUS TRANSACTION RENDERED UNSATISFACTORY SERVICE OR FURNISHED SUPPLIES NOT IN ACCORDANCE WITH THE SPECIFICATIONS IS NO VALID REASON FOR CONTINUED REFUSAL THEREAFTER TO GIVE CONSIDERATION TO BIDS FOR FURNISHING SUPPLIES.

A-21012, MARCH 5, 1928, 7 COMP. GEN. 547

ADVERTISING - DEBARMENT OF BIDDERS AS A GENERAL RULE THERE IS NO AUTHORITY FOR THE DEBARMENT OF BIDDERS AND ALL BIDS SHOULD BE RECEIVED AND GIVEN CONSIDERATION UPON AN EQUAL BASIS. THE REQUIREMENTS THAT ALL BIDS SHALL BE ACCOMPANIED BY A GUARANTEE, AND THAT THE CONTRACT WHEN AWARDED SHALL BE SUPPORTED BY A BOND, ARE INTENDED TO PROTECT THE UNITED STATES FROM ANY LOSS OR DAMAGE THAT MIGHT BE SUSTAINED BECAUSE OF DEFAULT OR FAILURE ON THE PART OF THE CONTRACTOR.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE TREASURY, MARCH 5, 1928:

I HAVE YOUR LETTER OF FEBRUARY 3, 1928, IN REPLY TO MY LETTER OF JANUARY 18, 1928, REGARDING A COMPLAINT MADE BY THE IMPERVIOUS PAINT AND VARNISH CO. WITH REFERENCE TO THE REFUSAL OF THE GENERAL SUPPLY COMMITTEE TO ACCEPT OR CONSIDER THEIR PROPOSALS SUBMITTED IN RESPONSE TO ADVERTISEMENTS FOR BIDS.

AS A GENERAL RULE THERE IS NO AUTHORITY FOR THE DEBARMENT OF BIDDERS AND ALL BIDS SHOULD BE RECEIVED AND GIVEN CONSIDERATION ON AN EQUAL BASIS. THE FACT THAT A BIDDER IN A PREVIOUS TRANSACTION RENDERED UNSATISFACTORY SERVICE OR FURNISHED SUPPLIES NOT IN ACCORDANCE WITH THE SPECIFICATIONS IS NO VALID REASON FOR CONTINUED REFUSAL THEREAFTER TO GIVE CONSIDERATION TO BIDS FOR FURNISHING SUPPLIES, ETC. THE REQUIREMENTS THAT ALL BIDS BE ACCOMPANIED BY A GUARANTEE AND THAT THE CONTRACT WHEN AWARDED BE SUPPORTED BY A BOND ARE INTENDED TO PROTECT THE UNITED STATES FROM ANY LOSS OR DAMAGE THAT MIGHT BE SUSTAINED BECAUSE OF DEFAULT OR FAILURE OF A CONTRACTOR. THE PROPER PROCEDURE TO BE FOLLOWED IN EVENT OF FAILURE TO DELIVER SUPPLIES, ETC., IN ACCORDANCE WITH THE TERMS OF THE CONTRACT, IS TO PURCHASE AGAINST THE DEFAULTING CONTRACTOR'S ACCOUNT. WHILE A BOND WILL, IN MOST CASES, SAFEGUARD THE GOVERNMENT AGAINST MONETARY LOSS, THERE MAY BE CASES WHERE THE SUPPLIES OR SERVICES ARE OF SUCH CHARACTER AS TO REQUIRE OTHER SAFEGUARDS, SUCH AS EXPERIENCE, TECHNICAL KNOWLEDGE, ETC., NECESSARY TO INSURE COMPLETE PERFORMANCE. IN SUCH CASES THE FACTS SHOULD BE CLEARLY SHOWN IN SUPPORT OF THE REJECTION OF THE BID.

WHEN THE INTERESTS OF THE UNITED STATES REQUIRE THE DEBARMENT OF A BIDDER NO QUESTION WILL BE RAISED BY THIS OFFICE WITH RESPECT THERETO, PROVIDED THE LENGTH OF TIME OF SUCH DEBARMENT IS DEFINITELY STATED AND NOT UNREASONABLE, AND THE REASONS FOR THE DEBARMENT, WITH A STATEMENT OF THE SPECIFIC INSTANCES OF THE BIDDER'S DERELICTION, ARE MADE OF RECORD AND A COPY THEREOF FURNISHED THE BIDDER AND THIS OFFICE. SUCH SHOULD BE THE PROCEDURE WITH RESPECT TO THE DEBARMENT OF BIDDERS HEREAFTER.