B-183023, MAR 25, 1975

B-183023: Mar 25, 1975

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ALTHOUGH PROTESTER ALLEGES THAT BIDDER UNDER SALES INVITATION IS INDEBTED TO GOVERNMENT AS UNDISCLOSED PRINCIPAL IN CONNECTION WITH PRIOR SALES WITH THIRD PARTY AND THEREFORE IS INELIGIBLE FOR AWARD UNDER SOLICITATION CLAUSE PROHIBITING AWARD TO BIDDER INDEBTED TO GOVERNMENT. THE DRYDOCK IN QUESTION WAS OFFERED FOR SALE BY THE DEFENSE PROPERTY DISPOSAL SHIP SALES OFFICES. BIDS WERE OPENED ON JANUARY 9. ON ITEM 1 WAS SUBMITTED BY MARITIME SHIPPING. 000 WAS THAT OF THE PROTESTER. THE PROTESTER QUESTIONS THE PROPRIETY OF ANY AWARD TO MARITIME SHIPPING ON THE BASIS THAT THE SOLICITATION PROHIBITS AN AWARD TO A PURCHASER INDEBTED TO THE UNITED STATES FOR FAILURE TO PAY FOR PRIOR PURCHASES OF SURPLUS PROPERTY AND THAT THE HIGH BIDDER IS INDEBTED TO THE GOVERNMENT AS AN UNDISCLOSED PRINCIPAL UNDER TWO PRIOR SALES.

B-183023, MAR 25, 1975

ALTHOUGH PROTESTER ALLEGES THAT BIDDER UNDER SALES INVITATION IS INDEBTED TO GOVERNMENT AS UNDISCLOSED PRINCIPAL IN CONNECTION WITH PRIOR SALES WITH THIRD PARTY AND THEREFORE IS INELIGIBLE FOR AWARD UNDER SOLICITATION CLAUSE PROHIBITING AWARD TO BIDDER INDEBTED TO GOVERNMENT, AWARD MAY BE MADE TO SUCH BIDDER BY AGENCY IN ABSENCE OF CLEAR PROOF OR JUDICIAL DETERMINATION OF ALLEGED INDEBTEDNESS.

MARINE POWER AND EQUIPMENT COMPANY:

THIS PROTEST CONCERNS THE PROPOSED SALE OF A FLOATING DRYDOCK TO MR. MAJID KAROON, PRESIDENT OF MARITIME SHIPPING COMPANY, LIMITED (MARITIME SHIPPING), BY THE DEFENSE SUPPLY AGENCY'S DEFENSE PROPERTY DISPOSAL SERVICE (DPDS).

THE DRYDOCK IN QUESTION WAS OFFERED FOR SALE BY THE DEFENSE PROPERTY DISPOSAL SHIP SALES OFFICES, PORTSMOUTH, RHODE ISLAND, AS ITEM 1 UNDER SALES INVITATION FOR BIDS 16-5034. BIDS WERE OPENED ON JANUARY 9, 1975, AND THE HIGH BID IN THE AMOUNT OF $366,666, ON ITEM 1 WAS SUBMITTED BY MARITIME SHIPPING. THE NEXT HIGH BID OF $330,000 WAS THAT OF THE PROTESTER, MARINE POWER AND EQUIPMENT COMPANY.

THE PROTESTER QUESTIONS THE PROPRIETY OF ANY AWARD TO MARITIME SHIPPING ON THE BASIS THAT THE SOLICITATION PROHIBITS AN AWARD TO A PURCHASER INDEBTED TO THE UNITED STATES FOR FAILURE TO PAY FOR PRIOR PURCHASES OF SURPLUS PROPERTY AND THAT THE HIGH BIDDER IS INDEBTED TO THE GOVERNMENT AS AN UNDISCLOSED PRINCIPAL UNDER TWO PRIOR SALES. SPECIFICALLY, THE FIRM CONTENDS THAT THE HIGH BIDDER, THROUGH ITS ALLEGED AGENT, MR. JOHN WILLIFORD, DEFAULTED ON TWO PREVIOUS CONTRACTS AWARDED UNDER SALES NOS. 16 -5011 AND 16-5013, AND THAT LIQUIDATED DAMAGES REMAIN OWING TO THE GOVERNMENT. THE PROTESTER STATES THAT IT HAS BEEN INFORMED BY MR. WILLIFORD THAT A LAW SUIT HAS BEEN FILED CONCERNING HIS STATUS AS MR. MAJID KAROON'S AGENT IN THE CONDUCT OF THE TWO PREVIOUS SALES.

IT IS THE AGENCY'S POSITION THAT THE HIGH BID IS ACCEPTABLE SINCE THE PRIOR CONTRACTS REFERRED TO BY THE PROTESTER WERE IN FACT AWARDED TO MR. WILLIFORD IN HIS INDIVIDUAL CAPACITY AND THAT THERE IS NO INDICATION ON EITHER BID THAT HE WAS BIDDING FOR OR IN THE NAME OF ANY OTHER INDIVIDUAL OR FIRM.

WE AGREE WITH THE AGENCY'S POSITION IN THE MATTER. THERE IS NO CLEAR PROOF THAT KAROON IS THE REAL DEBTOR UNDER THE PRIOR CONTRACTS. IN THE ABSENCE OF SUCH PROOF OR OF A JUDICIAL DETERMINATION TO THE EFFECT THAT KAROON IS INDEBTED TO THE UNITED STATES, WE FIND NO BASIS TO REQUIRE REJECTION OF THE HIGH BID.

ACCORDINGLY, THE PROTEST IS DENIED.