B-149944, OCT. 8, 1962

B-149944: Oct 8, 1962

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INC: REFERENCE IS MADE TO YOUR LETTER DATED SEPTEMBER 18. IN APPROPRIATE CASES WHERE THE FACTS INDICATE THAT THE AWARD WAS CONTRARY TO LAW OR REGULATION. SUCH REVIEWS WILL BE UNDERTAKEN ONLY WHERE THE PROTEST IS RECEIVED IN THIS OFFICE WITHIN A REASONABLE TIME AFTER THE DATE OF THE ACTION TO WHICH THE PROTEST IS DIRECTED. YOUR LETTER INDICATED THAT THE ABOVE INVITATION WAS FOR THE PROCUREMENT OF 800. ENGINE GENERATOR SETS AND THAT YOUR BID WAS REJECTED ON APRIL 20. WITH RESPECT TO THAT PORTION OF YOUR LETTER WHICH IS DIRECTED TO THE TERMINATION OF A PRIOR CONTRACT NO. YOU STATE THAT NEGOTIATIONS ON YOUR TERMINATION SETTLEMENT HAVE BEEN RESUMED AND ARE NOW BEING CONTINUED AT THE PENTAGON LEVEL.

B-149944, OCT. 8, 1962

TO BLUE ISLAND ENGINEERING AND SUPPLY COMPANY, INC:

REFERENCE IS MADE TO YOUR LETTER DATED SEPTEMBER 18, 1962, OUTLINING EVENTS UPON WHICH THE DEPARTMENT OF THE ARMY APPARENTLY DETERMINED THAT YOUR COMPANY COULD NOT BE CONSIDERED A RESPONSIBLE BIDDER UNDER IFB NO. DA -ENG-11-184-61-AF-245 AND REQUESTING OUR ADVICE ON HOW YOU CAN PROPERLY PRESENT YOUR CASE AND SEEK REDRESS.

WHILE THIS OFFICE HAS AUTHORITY TO REVIEW PROTESTS BY LOW BIDDERS AGAINST CONTRACT AWARDS TO HIGHER BIDDERS AND, IN APPROPRIATE CASES WHERE THE FACTS INDICATE THAT THE AWARD WAS CONTRARY TO LAW OR REGULATION, TO DIRECT CANCELLATION OF THE CONTRACTS AWARDED, SUCH REVIEWS WILL BE UNDERTAKEN ONLY WHERE THE PROTEST IS RECEIVED IN THIS OFFICE WITHIN A REASONABLE TIME AFTER THE DATE OF THE ACTION TO WHICH THE PROTEST IS DIRECTED. YOUR LETTER INDICATED THAT THE ABOVE INVITATION WAS FOR THE PROCUREMENT OF 800, 3 KW, 28 VOLT, ENGINE GENERATOR SETS AND THAT YOUR BID WAS REJECTED ON APRIL 20, 1961. IT WOULD THEREFORE APPEAR THAT PERFORMANCE UNDER THE CONTRACT AWARDED MUST BE COMPLETED, OR SUBSTANTIALLY COMPLETED, AT THE PRESENT TIME AND THAT NO USEFUL PURPOSE WOULD BE SERVED AT THIS TIME BY A REVIEW DIRECTED TO DETERMINING WHETHER THE CONTRACT SHOULD BE CANCELLED.

WITH RESPECT TO THAT PORTION OF YOUR LETTER WHICH IS DIRECTED TO THE TERMINATION OF A PRIOR CONTRACT NO. DA-11-184-ENG-16697, YOU STATE THAT NEGOTIATIONS ON YOUR TERMINATION SETTLEMENT HAVE BEEN RESUMED AND ARE NOW BEING CONTINUED AT THE PENTAGON LEVEL. IT MUST BE PRESUMED THAT SUCH NEGOTIATIONS WILL EVENTUALLY RESULT IN A SETTLEMENT SATISFACTORY TO ALL PARTIES. HOWEVER, THE CONCLUSION OF SUCH NEGOTIATIONS AND A FINAL DETERMINATION ON THE MERITS OF YOUR TERMINATION CLAIMS WOULD APPEAR TO BE BOTH PROPER AND NECESSARY BEFORE SUCH MATTERS MAY BE CONSIDERED BY EITHER THIS OFFICE OR BY THE COURTS.

THIS OFFICE HAS NO JURISDICTION OVER CLAIMS FOR DAMAGES TO YOUR COMPANY'S BUSINESS OR REPUTATION ARISING OUT OF THE INVESTIGATIONS WHICH FOLLOW TERMINATION OF CONTRACT DA-11-184-ENG-16697, AND WE ARE THEREFORE NOT IN A POSITION TO ADVISE YOU ON ANY RIGHTS YOU MAY HAVE IN THIS AREA OR ON THE PROCEDURE TO BE FOLLOWED IN DETERMINING SUCH RIGHTS.