B-127569, JUN. 1, 1956

B-127569: Jun 1, 1956

Additional Materials:

Contact:

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

 

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

THE REQUESTED RELIEF IS STATED IN YOUR LETTER OF SEPTEMBER 5. AS INCLUDING "INDEMNITY COVERING FIRST OF ALL THE EXPENSES WE HAVE BEEN PUT TO. THEN TAKING INTO ACCOUNT THE PROFIT WE SHOULD NORMALLY HAVE MADE FROM THE BUILDING AND RENTING OF THESE HOUSES.'. IT APPEARS THAT NEGOTIATIONS WERE CARRIED ON BETWEEN YOU AND THE UNITED STATES EUROPEAN COMMAND HOUSING GROUP RELATIVE TO THE PROPOSED CONSTRUCTION OF 140 UNITS OF RENTAL GUARANTEE HOUSING FOR CAMP CAPTIEUX (AT BEZAS) AND FOR CAMP BUSSAC (AT SAINTE EULALIE) BUT THAT ON JUNE 30. A CONTRACT WAS AWARDED TO MAURICE BERTRAND. IT IS REPORTED BY HEADQUARTERS. YOU SUBMITTED NEW PROPOSALS FOR ONLY TWO PROJECTS INCLUDED IN A NEW HOUSING PROSPECTUS WHICH WAS BASED ON A 7-YEAR RENTAL GUARANTEE INSTEAD OF THE 5-YEAR RENTAL GUARANTEE ON WHICH THE EARLIER PROPOSALS HAD BEEN BASED.

B-127569, JUN. 1, 1956

TO SOCIETE IMMOBILIERE DES CITES:

THERE HAS BEEN REFERRED TO THIS OFFICE FOR DISPOSITION YOUR LETTER DATED OCTOBER 29, 1955, TO THE PRESIDENT OF THE UNITED STATES, PROTESTING THE NEGOTIATED AWARD OF A CERTAIN MILITARY CONSTRUCTION CONTRACT TO BERTRAND AND AARON AND REQUESTING RELIEF ON THE BASIS OF AN ALLEGED QUASI- CONTRACTUAL RELATIONSHIP ARISING FROM YOUR NEGOTIATIONS WITH REPRESENTATIVES OF THE UNITED STATES PRIOR TO AWARD. THE REQUESTED RELIEF IS STATED IN YOUR LETTER OF SEPTEMBER 5, 1955, TO HEADQUARTERS, UNITED STATES EUROPEAN COMMAND, AS INCLUDING "INDEMNITY COVERING FIRST OF ALL THE EXPENSES WE HAVE BEEN PUT TO, FROM MAY 1953 TO THIS DAY, AND THEN TAKING INTO ACCOUNT THE PROFIT WE SHOULD NORMALLY HAVE MADE FROM THE BUILDING AND RENTING OF THESE HOUSES.'

IT APPEARS THAT NEGOTIATIONS WERE CARRIED ON BETWEEN YOU AND THE UNITED STATES EUROPEAN COMMAND HOUSING GROUP RELATIVE TO THE PROPOSED CONSTRUCTION OF 140 UNITS OF RENTAL GUARANTEE HOUSING FOR CAMP CAPTIEUX (AT BEZAS) AND FOR CAMP BUSSAC (AT SAINTE EULALIE) BUT THAT ON JUNE 30, 1955, A CONTRACT WAS AWARDED TO MAURICE BERTRAND--- JEAN CLAUDE AARON, SOCIETE EN NOM COLLECT IF, FOR THE CONSTRUCTION OF 2,498 HOUSING UNITS IN 29 LOCATIONS IN FRANCE, INCLUDING UNITS FOR CAMP CAPTIEUX AND CAMP BUSSAC, UNDER PUBLIC LAW NO. 534, 82D CONGRESS, 66 STAT. 606 (UNITED STATES RENTAL GUARANTEE PROGRAM).

IT IS REPORTED BY HEADQUARTERS, UNITED STATES EUROPEAN COMMAND, THAT BY LETTERS DATED JANUARY 18, 1955, AND FEBRUARY 10, 1955, YOU WITHDREW YOUR PROPOSALS FOR CONSTRUCTION OF HOUSING AT BEZAS AND SAINTE EULALIE AND BY LETTERS DATED FEBRUARY 15, 1955, AND FEBRUARY 18, 1955, YOU SUBMITTED NEW PROPOSALS FOR ONLY TWO PROJECTS INCLUDED IN A NEW HOUSING PROSPECTUS WHICH WAS BASED ON A 7-YEAR RENTAL GUARANTEE INSTEAD OF THE 5-YEAR RENTAL GUARANTEE ON WHICH THE EARLIER PROPOSALS HAD BEEN BASED. IT IS REPORTED ALSO THAT THE AWARD WAS MADE TO THE SPONSOR WHO SUBMITTED THE BEST FINAL PROPOSAL FOR CONSTRUCTING THE LARGEST NUMBER OF UNITS AND WHO HAD THE REQUISITE ABILITY TO PERFORM, THERE BEING TEN PROSPECTIVE SPONSORS, INCLUDING YOUR GROUP.

THE FILE CONTAINS A COPY OF A LETTER DATED APRIL 18, 1955, ADVISING YOU THAT YOUR PROPOSAL FOR CONSTRUCTION WAS NO LONGER UNDER CONSIDERATION; AND IT IS REPORTED THAT SIMILAR LETTERS WERE SENT TO EIGHT OTHER PROSPECTIVE SPONSORS WHOSE PROPOSALS HAD BEEN UNDER CONSIDERATION. THE FILE INDICATES THAT THE AWARD WAS MADE IN A LEGAL MANNER, AS AUTHORIZED BY LAW, TO A DULY QUALIFIED SPONSOR. ACCORDINGLY, THERE APPEARS NO PROPER BASIS FOR THIS OFFICE TO OBJECT TO THE AWARD AS MADE. IT IS REPORTED FURTHER THAT SUCH NEGOTIATIONS AS WERE CARRIED ON WITH YOU AND WITH OTHER PROSPECTIVE SPONSORS WERE MERELY THE USUAL AND NECESSARY NEGOTIATIONS INVOLVED IN CONSIDERING PROPOSALS BEFORE DETERMINING WHETHER A CONTRACT IS TO BE MADE.

THE RECORD SHOWS THAT THERE WAS NOT AT ANY TIME A FINAL OR DEFINITE AGREEMENT SIGNED OR MADE WITH YOU WHEREBY THE UNITED STATES BECAME OBLIGATED TO CONTRACT WITH YOU FOR CONSTRUCTION OF THE HOUSING IN QUESTION OR TO REIMBURSE YOU FOR EXPENSES INCURRED BY YOU IN CONDUCTING THE NEGOTIATIONS OR MAKING PLANS OR PREPARING FOR ACTUAL CONSTRUCTION. APPEARS THAT YOU ENTERED INTO THE NEGOTIATIONS AT YOUR OWN SUGGESTION, AWARE OF THE FACT THAT THE RESULT WAS UNCERTAIN AND THAT ANY PROPOSAL MUST BE MADE DEFINITE AND MUST BE APPROVED BY HIGHER AUTHORITY BEFORE IT COULD OBLIGATE THE UNITED STATES.

FOR THE REASONS ABOVE SET OUT, THERE IS NOT PERCEIVED ANY LEGAL BASIS FOR ALLOWANCE OF ANY PART OF THE EXPENSES OR ALLEGED LOSSES COVERED BY THE CLAIM.