Legality of Contracts

A-51647: Mar 27, 1941

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This decision is regarding the legality of contracts which were awarded to two contractors without competitive bidding. GAO determined that the United States Maritime Commission reported that one contract was entered into without advertising because competition was not available and that the other contract was awarded without advertising because of the specialized character of the services involved. Under the circumstances presented these explanations appeared reasonable and were considered sufficient to justify the conclusion that the act of the Commission in dispensing with advertising was not improper. Accordingly, GAO determined the procedure followed in making these contracts would not be further questioned.