B-164310, AUG. 28, 1968

B-164310: Aug 28, 1968

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INC.: REFERENCE IS MADE TO YOUR LETTERS OF MAY 9 AND JUNE 21. GS-03B-12541 WAS ISSUED ON MARCH 4. GSA REPORTS THAT AN AWARD THEREUNDER WAS MADE ON MAY 2. WAS CANCELLED PRIOR TO THE BID OPENING DATE. THE REASON FOR THIS ACTION WAS THAT THE PROCUREMENT WAS INTENDED TO BE FOR THE PROTECTION OF THE FEDERAL COMMUNICATIONS COMMISSION CREDIT UNION AT THE 1919 M STREET ADDRESS. IT WAS DETERMINED THAT ANY FURTHER PROTECTION ARRANGEMENTS AFTER AUGUST 1. A FEDERAL CREDIT UNION IS A CORPORATION ORGANIZED IN ACCORDANCE WITH THE PROVISIONS OF THE FEDERAL CREDIT UNION ACT. A FEDERAL CREDIT UNION IS A PRIVATE AND NOT A GOVERNMENTAL ORGANIZATION. ITS FUNDS ARE OBTAINED FROM PRIVATE SOURCES AND ARE NOT APPROPRIATED BY THE FEDERAL GOVERNMENT.

B-164310, AUG. 28, 1968

TO SECURITY, INC.:

REFERENCE IS MADE TO YOUR LETTERS OF MAY 9 AND JUNE 21, 1968, WITH ENCLOSURES, PROTESTING AGAINST AN AWARD TO ANY OTHER BIDDER UNDER INVITATION FOR BIDS NO. GS-03B-12541 ISSUED BY THE GENERAL SERVICES ADMINISTRATION (GSA), PUBLIC BUILDINGS SERVICE, AND REQUESTING OUR OPINION AS TO THE LEGAL EFFECT OF A CERTAIN CLAUSE APPEARING IN THE SPECIFICATIONS OF INVITATION FOR BIDS NO. GS-03B-12556, ALSO ISSUED BY GSA.

IFB NO. GS-03B-12541 WAS ISSUED ON MARCH 4, 1968, FOR THE FURNISHING OF ALL LABOR, NECESSARY EQUIPMENT, AND SUPPLIES IN PERFORMING ALL OPERATIONS IN CONNECTION WITH PROVIDING A SECURITY ALARM SYSTEM AT THE FEDERAL COMMUNICATIONS COMMISSION, 1919 M STREET, N.W., WASHINGTON, D.C. GSA REPORTS THAT AN AWARD THEREUNDER WAS MADE ON MAY 2, 1968, TO THE AMERICAN DISTRICT TELEGRAPH COMPANY (ADTC); BUT THAT UPON CONSIDERATION OF YOUR PROTEST IT REQUESTED AND ADTC AGREED TO THE CANCELLATION OF ITS CONTRACT, EFFECTIVE AUGUST 1, 1968, UPON PAYMENT OF THE INSTALLATION CHARGE AND THE MONTHLY SERVICE CHARGE FOR THE INSTALLED EQUIPMENT.

GSA ALSO REPORTS THAT THE SECOND INVITATION, IFB NO. GS-03B-12556, ISSUED ON JUNE 17, 1968, FOR OPENING ON JULY 8, 1968, WAS CANCELLED PRIOR TO THE BID OPENING DATE. THE REASON FOR THIS ACTION WAS THAT THE PROCUREMENT WAS INTENDED TO BE FOR THE PROTECTION OF THE FEDERAL COMMUNICATIONS COMMISSION CREDIT UNION AT THE 1919 M STREET ADDRESS, WITH THE COSTS REIMBURSABLE TO GSA; THAT UPON FURTHER CONSIDERATION, IT WAS DETERMINED THAT ANY FURTHER PROTECTION ARRANGEMENTS AFTER AUGUST 1, 1968, SHOULD BE MADE BY THE CREDIT UNION RATHER THAN BY GSA.

A FEDERAL CREDIT UNION IS A CORPORATION ORGANIZED IN ACCORDANCE WITH THE PROVISIONS OF THE FEDERAL CREDIT UNION ACT, 12 U.S.C. 1751, ET SEQ., FOR THE PURPOSE OF PROMOTING THRIFT AMONG ITS MEMBERS AND CREATING A SOURCE OF CREDIT FOR PROVIDENT OR PRODUCTIVE PURPOSES. WHILE ORGANIZED UNDER FEDERAL LAW AND SUBJECT TO THE SUPERVISION OF THE DIRECTOR OF THE BUREAU OF FEDERAL CREDIT UNIONS, A FEDERAL CREDIT UNION IS A PRIVATE AND NOT A GOVERNMENTAL ORGANIZATION, AND ITS FUNDS ARE OBTAINED FROM PRIVATE SOURCES AND ARE NOT APPROPRIATED BY THE FEDERAL GOVERNMENT. WHILE FEDERAL CREDIT UNIONS (WHEN COMPOSED OF THE REQUIRED PERCENTAGE OF FEDERAL EMPLOYEES) ARE ALLOWED FREE SPACE IN FEDERAL BUILDINGS WHEN SUCH SPACE IS AVAILABLE (12 U.S.C. 1770) AND ARE SUPPLIED BY GSA WITH THOSE SERVICES WHICH ARE NECESSARY TO MEET NORMAL SPACE NEEDS WITHOUT COST, SPECIAL SERVICES OVER AND ABOVE THOSE NORMAL NEEDS, SUCH AS PROVIDING A SECURITY ALARM SYSTEM, ARE NOT AUTHORIZED TO BE FURNISHED FROM APPROPRIATED FUNDS, BUT MUST BE PROVIDED FROM THE FUNDS OF THE CREDIT UNION, WHICH MAY CONTRACT AND PAY THEREFOR WITHOUT REFERENCE TO THE LAWS GOVERNING FEDERAL PROCUREMENT.

INASMUCH AS THE INVITATION ISSUED BY GSA ON JUNE 17, 1968, HAS BEEN CANCELLED, AND IT DOES NOT APPEAR THAT FURTHER ACTION WILL BE TAKEN BY THAT AGENCY TO OBTAIN THE ALARM SYSTEM SERVICES, NO ANSWER TO THE QUESTION PRESENTED BY YOU WITH RESPECT THERETO IS REQUIRED.