B-145986, JUN. 16, 1961

B-145986: Jun 16, 1961

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INC.: REFERENCE IS MADE TO YOUR LETTER DATED MAY 26. THE RECORD SHOWS THAT SIX BIDS WERE RECEIVED. AS YOU WERE ADVISED BY THE GENERAL SERVICES ADMINISTRATION BY LETTER OF MAY 24. ALL BIDS RECEIVED IN RESPONSE TO THE INVITATION WERE CONSIDERED UNREASONABLE AS TO PRICE AND WERE THEREFORE REJECTED IN THE BEST INTEREST OF THE GOVERNMENT. ALSO YOU WERE ADVISED THAT THE GENERAL SERVICES ADMINISTRATION WOULD NEGOTIATE FOR AN ACCEPTABLE BID AND YOU WERE INVITED TO SUBMIT ANOTHER BID. TO THE GENERAL SERVICES ADMINISTRATION THAT IT WAS YOUR UNDERSTANDING REBIDDING OF THE PROJECT WAS NOT CONSISTENT WITH THE GOVERNMENT'S ESTABLISHED POLICY AND CIRCUMVENTED THE ESTABLISHED ETHICAL PRACTICES OF BOTH THE GOVERNMENT AND PRIVATE INDUSTRIES.

B-145986, JUN. 16, 1961

TO V-C CONSTRUCTORS, INC.:

REFERENCE IS MADE TO YOUR LETTER DATED MAY 26, 1961, PROTESTING THE ACTION OF THE GENERAL SERVICES ADMINISTRATION IN CANCELLING ALL BIDS FOR THE EXTENSION AND REMODELING OF THE U.S. POST OFFICE AND OFFICE BUILDING AT HICKORY, NORTH CAROLINA, PROJECT NO. 31904.

THE RECORD SHOWS THAT SIX BIDS WERE RECEIVED. AS YOU WERE ADVISED BY THE GENERAL SERVICES ADMINISTRATION BY LETTER OF MAY 24, 1961, ALL BIDS RECEIVED IN RESPONSE TO THE INVITATION WERE CONSIDERED UNREASONABLE AS TO PRICE AND WERE THEREFORE REJECTED IN THE BEST INTEREST OF THE GOVERNMENT. ALSO YOU WERE ADVISED THAT THE GENERAL SERVICES ADMINISTRATION WOULD NEGOTIATE FOR AN ACCEPTABLE BID AND YOU WERE INVITED TO SUBMIT ANOTHER BID.

YOU STATE IN YOUR LETTER OF MAY 26, 1961, TO THE GENERAL SERVICES ADMINISTRATION THAT IT WAS YOUR UNDERSTANDING REBIDDING OF THE PROJECT WAS NOT CONSISTENT WITH THE GOVERNMENT'S ESTABLISHED POLICY AND CIRCUMVENTED THE ESTABLISHED ETHICAL PRACTICES OF BOTH THE GOVERNMENT AND PRIVATE INDUSTRIES.

SECTION 252 (C) (14) OF TITLE 41, U.S.C. PROVIDES IN EFFECT THAT IF IT IS DETERMINED AFTER ADVERTISING FOR PROPERTY OR SERVICES THAT THE BIDS ARE NOT REASONABLE ALL BIDS MAY BE REJECTED AND NEGOTIATIONS UNDERTAKEN. THE ACTION TAKEN IN THIS INSTANCE, THEREFORE, APPEARS PROPER AND CONSISTENT WITH THE APPLICABLE FEDERAL LAW.