B-201236, DEC 19, 1980

B-201236: Dec 19, 1980

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IBI ASSERTS THAT IT WAS ADVISED BY THE AGENCY THAT IT WAS BEING "RELIEVED" OF RESPONSIBILITY UNDER THE CONTRACT. WE HAVE BEEN INFORMALLY ADVISED BY HHS THAT. THESE PROBLEMS ARE CURRENTLY BEING DISCUSSED WITH IBI AND THE CONTRACT HAS NOT BEEN TERMINATED. THE QUESTION OF WHETHER A CONTRACTOR IS PERFORMING IN ACCORDANCE WITH CONTRACT REQUIREMENTS IS A MATTER OF CONTRACT ADMINISTRATION WHICH IS THE FUNCTION AND RESPONSIBILITY OF THE PROCURING ACTIVITY. IF THE AGENCY DETERMINES THAT IBI IS NOT MEETING THE SPECIFICATIONS. THIS IS A MATTER OF CONTRACT ADMINISTRATION FOR CONSIDERATION UNDER THE PROCEDURES SET FORTH IN THE DISPUTES CLAUSE OF THE CONTRACT AND IS NOT FOR RESOLUTION UNDER OUR BID PROTEST PROCEDURES.

B-201236, DEC 19, 1980

DIGEST: OBJECTION TO ANTICIPATED TERMINATION OF CONTRACT INVOLVES MATTER OF CONTRACT ADMINISTRATION PROPERLY FOR CONSIDERATION UNDER DISPUTES CLAUSE OF CONTRACT, IF TERMINATION IN FACT OCCURS, RATHER THAN BY GAO UNDER BID PROTEST PROCEDURES.

INTERNATIONAL BUSINESS INVESTMENTS, INC.:

INTERNATIONAL BUSINESS INVESTMENTS, INC. (IBI), PROTESTS THE ANTICIPATED TERMINATION OF CONTRACT NO. 253-81-0014 BY THE DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS).

IBI ASSERTS THAT IT WAS ADVISED BY THE AGENCY THAT IT WAS BEING "RELIEVED" OF RESPONSIBILITY UNDER THE CONTRACT, WHICH IBI INTERPRETS TO MEAN TERMINATION FOR THE CONVENIENCE OF THE GOVERNMENT. WE HAVE BEEN INFORMALLY ADVISED BY HHS THAT, WHILE THE AGENCY HAS EXPERIENCED PROBLEMS WITH IBI'S PERFORMANCE UNDER THE CONTRACT, THESE PROBLEMS ARE CURRENTLY BEING DISCUSSED WITH IBI AND THE CONTRACT HAS NOT BEEN TERMINATED.

THE QUESTION OF WHETHER A CONTRACTOR IS PERFORMING IN ACCORDANCE WITH CONTRACT REQUIREMENTS IS A MATTER OF CONTRACT ADMINISTRATION WHICH IS THE FUNCTION AND RESPONSIBILITY OF THE PROCURING ACTIVITY. PRECISION ENVIRONMENTS, INC., B-198418, APRIL 29, 1980, 80-1 CPD 306. IF THE AGENCY DETERMINES THAT IBI IS NOT MEETING THE SPECIFICATIONS, IT MAY TERMINATE THE CONTRACT. HOWEVER, THIS IS A MATTER OF CONTRACT ADMINISTRATION FOR CONSIDERATION UNDER THE PROCEDURES SET FORTH IN THE DISPUTES CLAUSE OF THE CONTRACT AND IS NOT FOR RESOLUTION UNDER OUR BID PROTEST PROCEDURES, 4 C.F.R. PART 20 (1980), WHICH ARE RESERVED FOR CONSIDERING WHETHER A CONTRACT AWARD, OR PROPOSED AWARD, COMPLIES WITH STATUTORY, REGULATORY, AND OTHER LEGAL REQUIREMENTS. OKLAHOMA AEROTRONICS, INC., B-201026, NOVEMBER 18, 1980, 80-2 CPD .

THE PROTEST IS DISMISSED.