B-151005, JUN. 20, 1963

B-151005: Jun 20, 1963

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CONNER: FURTHER REFERENCE IS MADE TO YOUR TELEGRAM OF MARCH 9. IT IS ADMINISTRATIVELY REPORTED THAT. THE ADMINISTRATIVE OFFICIALS REQUESTED BIDS UNDER THE CITED INVITATION FROM THOSE PERSONS OR FIRMS IN THE AREA WHO UPON INVESTIGATION WERE DEEMED RESPONSIBLE. THE LOW BID WAS SUBMITTED BY THEODORE MAYER AND BRO. AWARD WAS THEREFORE MADE TO THAT FIRM ON MARCH 6. PROTESTING ANY AWARD UNDER THIS INVITATION WAS ALSO SENT TO THE COMMISSIONER. AS FOLLOWS: "YOU WERE ONE OF SEVERAL PEOPLE ON WHOM AN FHA REPRESENTATIVE CALLED TO DISCUSS PARTICIPATION IN THE HANDLING OF FHA ACQUIRED PROPERTIES. OUR REPRESENTATIVES CONCLUDED THAT THERE WAS A SERIOUS QUESTION AS TO THE ADEQUACY OF YOUR FACILITIES FOR MANAGEMENT OF A LARGE RENTAL HOUSING PROJECT.

B-151005, JUN. 20, 1963

TO MR. DAN T. CONNER:

FURTHER REFERENCE IS MADE TO YOUR TELEGRAM OF MARCH 9, 1963, AND TO SUPPLEMENTARY LETTER OF MARCH 21, 1963, FROM YOUR ATTORNEY, PROTESTING, BECAUSE OF YOUR NOT BEING FURNISHED WITH A COPY OF THE INVITATION TO BID, ANY AWARD UNDER INVITATION NO. 6235, ISSUED BY THE FEDERAL HOUSING ADMINISTRATION, FOR THE MANAGEMENT OF SWIFTON VILLAGE, CINCINNATI, OHIO.

IT IS ADMINISTRATIVELY REPORTED THAT, BASED ON THE NEED FOR MANAGEMENT AND RENTAL SERVICES FOR SWIFTON VILLAGE, A LARGE APARTMENT DEVELOPMENT CONSISTING OF 1168 UNITS, THE ADMINISTRATIVE OFFICIALS REQUESTED BIDS UNDER THE CITED INVITATION FROM THOSE PERSONS OR FIRMS IN THE AREA WHO UPON INVESTIGATION WERE DEEMED RESPONSIBLE, COMPETENT, ADEQUATELY EQUIPPED, AND PREPARED TO RENDER THE REQUIRED SERVICES IN A SATISFACTORY MANNER. OF THE EIGHT BIDS RECEIVED, THE LOW BID WAS SUBMITTED BY THEODORE MAYER AND BRO., INC., AND AWARD WAS THEREFORE MADE TO THAT FIRM ON MARCH 6, 1963. THE RECORD FURTHER SHOWS THAT A COPY OF YOUR TELEGRAM OF MARCH 9, 1963, PROTESTING ANY AWARD UNDER THIS INVITATION WAS ALSO SENT TO THE COMMISSIONER, FEDERAL HOUSING ADMINISTRATION, WHO, IN REPLY OF MARCH 20, 1963, EXPLAINING THE REASON FOR OMITTING YOUR NAME FROM THE LIST OF BIDDERS, STATED, IN PART, AS FOLLOWS:

"YOU WERE ONE OF SEVERAL PEOPLE ON WHOM AN FHA REPRESENTATIVE CALLED TO DISCUSS PARTICIPATION IN THE HANDLING OF FHA ACQUIRED PROPERTIES. BASED ON THE DISCUSSION WITH YOU, OUR REPRESENTATIVES CONCLUDED THAT THERE WAS A SERIOUS QUESTION AS TO THE ADEQUACY OF YOUR FACILITIES FOR MANAGEMENT OF A LARGE RENTAL HOUSING PROJECT, SINCE YOUR REAL ESTATE ACTIVITY IS LARGELY CONFINED TO PROPERTY SALES. YOUR NAME WAS NOT, THEREFORE, ON THE MAILING LIST SUBMITTED TO THE CONTRACTING OFFICE FOR THE PURPOSE OF INVITING BIDS.'

THE ADMINISTRATIVE ACTION IN SOLICITING BIDS FROM ONLY THOSE FIRMS DEEMED QUALIFIED TO RENDER THE REQUIRED SERVICES IS NOT IN VIOLATION OF THE PRESCRIBED STATUTORY REQUIREMENTS FOR FORMALLY ADVERTISED PROCUREMENTS. SEE 19 COMP. GEN. 523. IN VIEW THEREOF AND SINCE THERE IS NO REQUIREMENT THAT ALL BIDS BE REJECTED AND THE NEEDS READVERTISED BECAUSE OF FAILURE TO SOLICIT BIDS FROM EVERY POTENTIAL BIDDER, WE FIND NO PROPER LEGAL BASIS FOR QUESTIONING THE AWARD AS MADE. 34 COMP. GEN. 684.