B-128829, NOV. 2, 1956

B-128829: Nov 2, 1956

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HIRSCHBERG: REFERENCE IS MADE TO YOUR LETTER OF JULY 26. IN YOUR PROTEST YOU CONTENDED THAT AS YOU WERE THE ONLY BIDDER WHO WAS LICENSED UNDER THE PROVISIONS OF THE OHIO LAW. THE OTHER BIDDERS SHOULD HAVE BEEN DISQUALIFIED. WE WERE ALSO INFORMED BY YOU THAT ON AUGUST 2. HAVE BEEN ADVISED THAT CHIEF JUDGE UNDERWOOD. IN WHICH MOTION TO DISMISS THE INJUNCTION OF THE OHIO COURT WAS GRANTED. A COPY OF WHICH IS ENCLOSED. THIS OFFICE WOULD HAVE NO REASON TO FURTHER CONSIDER YOUR PROTEST.

B-128829, NOV. 2, 1956

TO MR. HAROLD K. HIRSCHBERG:

REFERENCE IS MADE TO YOUR LETTER OF JULY 26, 1956, TO MR. VIRGIL H. REDWINE, JR., INVESTIGATOR IN CHARGE, REGIONAL OFFICE, U.S. GENERAL ACCOUNTING OFFICE, DAYTON, OHIO, IN WHICH YOU PROTESTED THE AWARD OF SUBCONTRACT NO. 117, AWARDED BY PETER KIEWIT SONS COMPANY UNDER CONTRACT NO. AT/40-1/-1400 TO THE DOUGLAS CORPORATION OF WISCONSIN FOR THE SALE OF CERTAIN GOVERNMENT PROPERTY.

IN YOUR PROTEST YOU CONTENDED THAT AS YOU WERE THE ONLY BIDDER WHO WAS LICENSED UNDER THE PROVISIONS OF THE OHIO LAW, THE OTHER BIDDERS SHOULD HAVE BEEN DISQUALIFIED. YOU SUBSEQUENTLY ADVISED THIS OFFICE BY TELEGRAM DATED AUGUST 21, 1956, THAT YOUR COMPANY WOULD BRING SUIT IN THE UNITED STATES COURT OF CLAIMS FOR DAMAGES ON THE LOSS OF AUCTION FEES BASED ON YOUR HAVING BEEN THE LOWEST ELIGIBLE BIDDER QUALIFIED TO CONDUCT AN AUCTION OF GOVERNMENT PROPERTY AT PIKE COUNTY, OHIO.

WE WERE ALSO INFORMED BY YOU THAT ON AUGUST 2, 1956, THE COMMON PLEAS COURT OF PIKE COUNTY, OHIO, ISSUED AN ORDER RESTRAINING THE DOUGLAS CORPORATION FROM CONDUCTING A PUBLIC AUCTION IN THE STATE OF OHIO BY REASON OF THEIR NOT BEING LICENSED NOR CONFORMING WITH THE STATE STATUTES OF OHIO. THE ORDER RESTRAINED PETER KIEWIT SONS COMPANY FROM EMPLOYING ANY AUCTIONEER THAT DID NOT COMPLY WITH THE LAWS OF THE STATE OF OHIO. YOU REQUESTED THIS OFFICE TO TAKE THE NECESSARY STEPS TO VOID THE CONTRACT AWARDED TO THE DOUGLAS CORPORATION IN VIEW OF THE RESTRAINING ORDER.

WE REQUESTED A REPORT FROM THE ATOMIC ENERGY COMMISSION ON THE FACTS INVOLVED IN YOUR PROTEST, AND HAVE BEEN ADVISED THAT CHIEF JUDGE UNDERWOOD, DISTRICT COURT OF THE UNITED STATES, SOUTHERN DISTRICT OF OHIO, EASTERN DIVISION, FILED A MEMORANDUM DECISION ON AUGUST 20, 1956, IN CIVIL CASE NO. 4751, EFFRON CORPORATION V. PETER KIEWIT SONS COMPANY AND DOUGLAS CORPORATION, IN WHICH MOTION TO DISMISS THE INJUNCTION OF THE OHIO COURT WAS GRANTED.

IN VIEW OF THE DISTRICT COURT'S DECISION IN THIS MATTER, A COPY OF WHICH IS ENCLOSED, THIS OFFICE WOULD HAVE NO REASON TO FURTHER CONSIDER YOUR PROTEST.