B-101404, OCT. 28, 1970

B-101404, OCT. 28, 1970

"EXAMINATION OF RECORDS" CLAUSE GAO CONCURS WITH THE DEPARTMENT OF STATE THAT THE "EXAMINATION OF RECORDS" CLAUSE PRESCRIBED IN FPR 1-3.814-2(E) MAY BE EXCLUDED FROM CONTRACT BETWEEN THE AMERICAN EMBASSY, LONDON, ENGLAND, AND SECURICOR LIMITED FOR SECURITY REASONS AND THE INTERESTS OF THE UNITED STATES.

TO MR. SECRETARY:

ENCLOSED IS THE FINDINGS AND DETERMINATION DATED OCTOBER 15, 1970, TO EXCLUDE THE "EXAMINATION OF RECORDS" CLAUSE PRESCRIBED IN FPR 1-3.814 2(E) FROM A NEGOTIATED FIXED-PRICE CONTRACT BETWEEN THE AMERICAN EMBASSY, LONDON, ENGLAND, AND SECURICOR LIMITED, A FOREIGN CONTRACTOR, TOGETHER WITH MY CONCURRENCE.

FINDINGS AND DETERMINATIONS

UNDER SECTION 304(C) OF

THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949,

AS AMENDED (41 U.S.C. 254(C))

--FINDINGS-- IN ACCORDANCE WITH THE REQUIREMENTS OF 41 CFR 1-6.1001, I MAKE THE FOLLOWING FINDINGS:

1. THE AMERICAN EMBASSY, LONDON, ENGLAND, HAS SOUGHT TO ENTER INTO A NEGOTIATED FIXED-PRICE CONTRACT IN EXCESS OF $2500 WITH SECURICOR LIMITED OF LONDON, A FOREIGN CONTRACTOR, FOR SECURITY SERVICES AT THE AMBASSADOR'S RESIDENCE AT REGENTS PARK.

2. IN VIEW OF THE APPLICABILITY OF 41 CFR 1-3.814-2(E) AND 41 CFR 1 6.1001, THE EMBASSY HAS SOUGHT INCLUSION OF THE EXAMINATION OF RECORDS CLAUSE IN THE PROPOSED CONTRACT. THE EMBASSY HAS REPORTED THAT NEGOTIATIONS HAVE BEEN CONDUCTED WITH REPRESENTATIVES OF SECURICOR LIMITED DURING WHICH THE EMBASSY'S POSITION HAS BEEN EXPLAINED WITH REGARD TO INCLUSION OF CLAUSE "INCLUDING THE POINT THAT THE RECORDS REQUIRED UNDER THE CLAUSE ARE ONLY THOSE DIRECTLY PERTINENT TO THE CONTRACT."

3. SECURICOR LIMITED HAVE REFUSED INCLUSION OF THE CLAUSE, STATING THEY CONSIDER IT INADVISABLE FOR SECURITY REASONS, THAT RECORDS BE KEPT FOR THREE YEARS AFTER TERMINATION OF THE CONTRACT. THEY STATE, "ALL OUR DOCUMENTS RELATING TO THE SERVICE WILL CONCERN THE SECURITY OF THE PREMISES, VULNERABLE POINTS AND THE STEPS WHICH WE ADVISE SHOULD BE TAKEN TO SAFEGUARD THE PREMISES AND THEIR CONTENTS ... IT WOULD BE HIGHLY DAMAGING IF THIS INFORMATION FELL INTO THE WRONG HANDS, BECAUSE THE INFORMATION STILL COULD BE OF USE TO THE WRONG PERSON, EVEN IF NEW SECURITY ARRANGEMENTS HAVE BEEN MADE."

4. THE PROPOSED CONTRACT WITH SECURICOR LIMITED WILL AMOUNT TO $9495.12. OWING TO THE NATURE AND LOCATION OF THE SERVICES REQUIRED, UNITED STATES SOURCES HAVE NOT BEEN SOLICITED. THE EMBASSY HAS POINTED OUT THAT SECURICOR LIMITED IS REGISTERED AS A MUTUAL COMPANY WITH PROFITS LIMITED TO FIVE PERCENT.

BASED ON THE FOREGOING FINDINGS, AND IN CONSIDERATION OF 41 CFR 1 6.1001, I HEREBY DETERMINE THAT OMISSION OF THE EXAMINATION OF RECORDS CLAUSE FROM THE PROPOSED CONTRACT WILL SERVE THE BEST INTERESTS OF THE UNITED STATES.