B-197063.2,L/M, MAR 25, 1980

B-197063.2,L/M: Mar 25, 1980

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YOU HAVE ALLEGED THAT THE FRS IS IMPROPERLY CONTRACTING FOR ARMORED CAR SERVICES IN VIOLATION OF THE SERVICE CONTRACT ACT. SINCE IT DOES NOT APPEAR THAT FEDERALLY APPROPRIATED FUNDS ARE INVOLVED. SO THAT WE WOULD HAVE AUTHORITY TO SETTLE THE ACCOUNTS OF THE FRS. WE HAVE CAREFULLY CONSIDERED YOUR REQUEST FOR RECONSIDERATION. ARE ESSENTIALLY DESIGNED TO RESOLVE ISSUES RELATED TO INDIVIDUAL PROCUREMENTS UPON THE TIMELY OBJECTION OF AN AGGRIEVED PARTY. THEY ARE NOT INTENDED FOR BROAD REVIEWS OF AGENCY PROCUREMENT PRACTICES. SINCE WE ARE WITHOUT AUTHORITY TO SETTLE THE ACCOUNTS OF THE FRS BANKS. WE ARE SIMILARILY WITHOUT AUTHORITY TO ISSUE FORMAL DECISIONS ON FRS PROCUREMENTS UNDER OUR BID PROTEST PROCEDURES.

B-197063.2,L/M, MAR 25, 1980

OFFICE OF GENERAL COUNSEL ATTENTION: MR. JOHN W. JONES, EXECUTIVE VICE PRESIDENT

BRINK'S INCORPORATED:

WE REFER TO YOUR LETTER DATED FEBRUARY 27, 1980, ASKING US TO RECONSIDER OUR DECISION NOT TO REVIEW, UNDER OUR BID PROTEST PROCEDURES, THE PROCUREMENT PRACTICES AND PROCEDURES OF THE FEDERAL RESERVE SYSTEM (FRS) IN CONTRACTING FOR ARMORED CAR SERVICES.

YOU HAVE ALLEGED THAT THE FRS IS IMPROPERLY CONTRACTING FOR ARMORED CAR SERVICES IN VIOLATION OF THE SERVICE CONTRACT ACT. WE ADVISED YOU THAT OUR OFFICE COULD NOT CONSIDER THE MERITS OF YOUR POSITION UNDER OUR BID PROTEST PROCEDURES, SINCE IT DOES NOT APPEAR THAT FEDERALLY APPROPRIATED FUNDS ARE INVOLVED, SO THAT WE WOULD HAVE AUTHORITY TO SETTLE THE ACCOUNTS OF THE FRS.

WE HAVE CAREFULLY CONSIDERED YOUR REQUEST FOR RECONSIDERATION, INCLUDING THE OPINION OF YOUR ATTORNEYS ON OUR BID PROTEST JURISDICTION. WE BELIEVE YOU MISUNDERSTAND OUR PRACTICE IN BID PROTEST CASES.

OUR BID PROTEST PROCEDURES, AS WE STATED, ARE ESSENTIALLY DESIGNED TO RESOLVE ISSUES RELATED TO INDIVIDUAL PROCUREMENTS UPON THE TIMELY OBJECTION OF AN AGGRIEVED PARTY. THEY ARE NOT INTENDED FOR BROAD REVIEWS OF AGENCY PROCUREMENT PRACTICES. MORE FUNDAMENTALLY, WE RESOLVE BID PROTESTS PURSUANT TO OUR ACCOUNT SETTLEMENT AUTHORITY. SINCE WE ARE WITHOUT AUTHORITY TO SETTLE THE ACCOUNTS OF THE FRS BANKS, WE ARE SIMILARILY WITHOUT AUTHORITY TO ISSUE FORMAL DECISIONS ON FRS PROCUREMENTS UNDER OUR BID PROTEST PROCEDURES.

ALTHOUGH WE DO NOT HAVE SETTLEMENT AUTHORITY OVER FRS BANKS, YOUR ATTORNEYS ARE CORRECT IN THAT WE HAVE SPECIFIC STATUTORY AUTHORITY TO CONDUCT AUDITS OF THE FRS BANKS. PURSUANT TO THAT AUTHORITY, AND IN LIGHT OF YOUR ALLEGATIONS, WE ARE RETAINING THE INFORMATION YOU FURNISHED AND MAY USE IT IN ANY FUTURE AUDIT UNDERTAKEN OF THE FRS'S PRACTICES IN CONTRACTING FOR ARMORED CAR SERVICES.