B-165618, JAN. 27, 1969

B-165618: Jan 27, 1969

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TO NORTHEAST BILLIARD SERVICE CO.: REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 5. WE HAVE BEEN ADVISED BY THE AIR FORCE THAT THE CONTRACT IN QUESTION INVOLVED THE USE OF NONAPPROPRIATED FUNDS AND FOR THAT REASON SEALED BIDS WERE NOT REQUIRED. AN INFORMAL BID PROCEDURE WAS EMPLOYED AND BIDS WERE SUBMITTED BY YOUR COMPANY AND B AND F ENTERPRISES. B AND F WAS THE LOW BIDDER IN THE AMOUNT OF $270 FOR ALL THE REPAIR WORK REQUIRED. ALTHOUGH THE SERVICE CLUB IS AN INSTRUMENTALITY OF THE GOVERNMENT. IT IS OPERATED WITH NONAPPROPRIATED FUNDS AND IS THEREFORE NOT SUBJECT TO THE REQUIREMENTS IMPOSED BY THE PROCUREMENT STATUTES AND REGULATIONS APPLICABLE TO GOVERNMENT PROCUREMENT FROM APPROPRIATED FUNDS.

B-165618, JAN. 27, 1969

TO NORTHEAST BILLIARD SERVICE CO.:

REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 5, 1968, PROTESTING THE AWARD OF A CONTRACT FOR THE REPAIR OF THREE BILLIARD TABLES AT THE YOUTH CENTER AND SERVICE CLUB LOCATED ON PEASE AIR FORCE BASE, NEW HAMPSHIRE.

WE HAVE BEEN ADVISED BY THE AIR FORCE THAT THE CONTRACT IN QUESTION INVOLVED THE USE OF NONAPPROPRIATED FUNDS AND FOR THAT REASON SEALED BIDS WERE NOT REQUIRED. HOWEVER, AN INFORMAL BID PROCEDURE WAS EMPLOYED AND BIDS WERE SUBMITTED BY YOUR COMPANY AND B AND F ENTERPRISES, INC. WHILE YOUR COMPANY BID $65 PER TABLE AND B AND F ENTERPRISES BID $90 PER TABLE, B AND F WAS THE LOW BIDDER IN THE AMOUNT OF $270 FOR ALL THE REPAIR WORK REQUIRED, WHEREAS, YOUR BID TOTALED $278.50 ($195 PLUS $83.50 FOR ANCILLARY REPAIR SERVICES).

ALTHOUGH THE SERVICE CLUB IS AN INSTRUMENTALITY OF THE GOVERNMENT, IT IS OPERATED WITH NONAPPROPRIATED FUNDS AND IS THEREFORE NOT SUBJECT TO THE REQUIREMENTS IMPOSED BY THE PROCUREMENT STATUTES AND REGULATIONS APPLICABLE TO GOVERNMENT PROCUREMENT FROM APPROPRIATED FUNDS. SEE 10 U.S.C. 2303 (A). NOR ARE ITS ACTIVITIES SUBJECT TO AUDIT BY THE GENERAL ACCOUNTING OFFICE.

WE REGRET THAT OUR LACK OF JURISDICTION IN THIS AREA PREVENTS US FROM BEING OF ANY REAL ASSISTANCE TO YOU, AND WE MUST DECLINE TO RENDER AN AUTHORITATIVE DECISION AS TO THE PROPRIETY OF THE CONTRACT AWARD.