B-124030, JUN. 23, 1955

B-124030: Jun 23, 1955

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

TO THE OXYGEN EQUIPMENT AND SERVICE COMPANY: FURTHER REFERENCE IS MADE TO YOUR TELEGRAM. ON THE BASIS THAT THE CONTRACT WAS AWARDED TO A CONCERN WHICH EMPLOYED OVER 500 EMPLOYEES DESPITE A PROVISION IN THE INVITATION RESTRICTING THE AWARD TO A SMALL BUSINESS CONCERN. INVESTIGATED THE SIZE OF THE CONTRACTOR THROUGH THE SMALL BUSINESS ADMINISTRATION AND THAT IT WAS ESTABLISHED THAT THE CONTRACTOR AND ALL ITS AFFILIATES EMPLOYED LESS THEN 500 EMPLOYEES. THIS WAS FURTHER SUBSTANTIATED BY A LETTER DATED MARCH 11. WHEREIN IT WAS STATED AS FOLLOWS: "WE WISH TO CONFIRM THAT THE O.E.N. CORPORATION WAS ENTITLED TO THE AWARD OF THE CONTRACT AS THE LOWEST BIDDER.

B-124030, JUN. 23, 1955

TO THE OXYGEN EQUIPMENT AND SERVICE COMPANY:

FURTHER REFERENCE IS MADE TO YOUR TELEGRAM, RECEIVED MAY 19, 1955, PROTESTING THE USE OF ANY FUNDS FOR A CONTRACT AWARDED AS A RESULT OF INVITATION NO. MPA-30-287-MD-55-426, ON THE BASIS THAT THE CONTRACT WAS AWARDED TO A CONCERN WHICH EMPLOYED OVER 500 EMPLOYEES DESPITE A PROVISION IN THE INVITATION RESTRICTING THE AWARD TO A SMALL BUSINESS CONCERN.

IN RESPONSE TO OUR REQUEST FOR A REPORT OF THE FACTS IN THE MATTER OF YOUR PROTEST, THE ARMED SERVICES MEDICAL PROCUREMENT AGENCY NOW STATES THAT PRIOR TO THE AWARD OF THE CONTRACT THAT AGENCY, AFTER RECEIPT OF A PROTEST FROM YOU, INVESTIGATED THE SIZE OF THE CONTRACTOR THROUGH THE SMALL BUSINESS ADMINISTRATION AND THAT IT WAS ESTABLISHED THAT THE CONTRACTOR AND ALL ITS AFFILIATES EMPLOYED LESS THEN 500 EMPLOYEES. THIS WAS FURTHER SUBSTANTIATED BY A LETTER DATED MARCH 11, 1955, FROM THE CONTRACTOR, WHEREIN IT WAS STATED AS FOLLOWS:

"WE WISH TO CONFIRM THAT THE O.E.N., CORPORATION COMBINED WITH IT'S PARENT COMPANY, PROFESSIONAL SPECIALTIES, INC., WOULD DEFINITELY COME UNDER THE HEADING OF SMALL BUSINESS HAVING LESS THAN 500 EMPLOYEES.'

ACCORDINGLY, WE FIND NO LEGAL BASIS FOR QUESTIONING THE ADMINISTRATIVE DETERMINATION THAT THE O.E.M. CORPORATION WAS ENTITLED TO THE AWARD OF THE CONTRACT AS THE LOWEST BIDDER.