Skip to main content

B-211330.2, MAR 5, 1984

B-211330.2 Mar 05, 1984
Jump To:
Skip to Highlights

Highlights

DIGEST: PROTESTER SUSPENDED FROM CONTRACTING IS NOT AN "INTERESTED PARTY" UNDER GAO BID PROTEST PROCEDURES. SYSTEMS ARCHITECTS WAS SUSPENDED FROM FUTURE CONTRACTING BY THE AIR FORCE ON THE BASIS OF A GRAND JURY INDICTMENT FOR FRAUD. ALL EXECUTIVE BRANCH AGENCIES ARE PROHIBITED FROM CONTRACTING WITH SYSTEMS ARCHITECTS. IT THEREFORE IS NOT AN "INTERESTED PARTY" UNDER OUR BID PROTEST PROCEDURES. THE COMPLAINT WAS DISMISSED FOR LACK OF SUBJECT MATTER JURISDICTION.

View Decision

B-211330.2, MAR 5, 1984

DIGEST: PROTESTER SUSPENDED FROM CONTRACTING IS NOT AN "INTERESTED PARTY" UNDER GAO BID PROTEST PROCEDURES, SINCE SUSPENSION RENDERS PROTESTER INELIGIBLE FOR AWARD.

SYSTEMS ARCHITECTS, INC.:

SYSTEMS ARCHITECTS, INC. PROTESTS THE ISSUANCE OF DELIVERY ORDERS UNDER BASIC ORDERING AGREEMENT F33657-82-C-2191 PURSUANT TO REQUEST FOR QUOTATIONS (RFQ) NO. F33657-82-Q-2191, ISSUED BY THE DEPARTMENT OF THE AIR FORCE TO DIGITAL EQUIPMENT CORPORATION. WE DISMISS THE PROTEST.

THE PROTESTER, A SECTION 8(A) SUBCONTRACTOR UNDER THE SMALL BUSINESS ACT, 15 U.S.C. SEC. 637(A) (1982), ALLEGES THAT THE AIR FORCE VIOLATED THE ACT AND BREACHED ITS CONTRACT WITH SYSTEMS ARCHITECTS BY FAILING TO ISSUE MORE THAN A SINGLE DELIVERY ORDER TO IT, BY REFUSING TO EXERCISE A SECOND-YEAR OPTION, AND BY ORDERING DIRECTLY FROM DIGITAL EQUIPMENT CORPORATION, WHICH THE ARMY PREVIOUSLY HAD APPROVED AS A SUBCONTRACTOR TO SYSTEMS ARCHITECTS. FN1

SYSTEMS ARCHITECTS SEEKS A RECOMMENDATION BY OUR OFFICE THAT THE AIR FORCE RESCIND THE ORDERS ISSUED TO DIGITAL EQUIPMENT CORPORATION AND RE ENTER NEGOTIATIONS WITH SYSTEMS ARCHITECTS FOR THE COMPUTER EQUIPMENT AND SERVICES COVERED BY ITS ORIGINAL 8(A) CONTRACT. ALTERNATIVELY, THE FIRM URGES THAT WE RECOMMEND THAT THE AIR FORCE CONDUCT A COMPETITIVE PROCUREMENT, PREFERABLY AS AN 8(A) SET-ASIDE, IN ORDER TO SATISFY ITS NEEDS.

ON NOVEMBER 1, 1983, AFTER THE FILING OF THIS PROTEST, SYSTEMS ARCHITECTS WAS SUSPENDED FROM FUTURE CONTRACTING BY THE AIR FORCE ON THE BASIS OF A GRAND JURY INDICTMENT FOR FRAUD. DURING THIS SUSPENSION, ALL EXECUTIVE BRANCH AGENCIES ARE PROHIBITED FROM CONTRACTING WITH SYSTEMS ARCHITECTS. DEFENSE ACQUISITION REGULATION SEC. 1-604.1(A) (DEFENSE ACQUISITION CIRCULAR 76-41, DECEMBER 27, 1982).

IN VIEW OF ITS SUSPENSION, EVEN IF WE SUSTAINED ITS PROTEST AND GRANTED THE RELIEF THAT SYSTEMS ARCHITECTS SEEKS, THE FIRM WOULD NOT BE ELIGIBLE FOR AWARD. IT THEREFORE IS NOT AN "INTERESTED PARTY" UNDER OUR BID PROTEST PROCEDURES, 4 C.F.R. SEC. 21.1(A) (1983); SEE COMPUTER SCIENCES CORPORATION, B-200755, MARCH 6, 1981, 81-1 CPD 181.

WE DISMISS THE PROTEST.

FN1 ON MARCH 25, 1983, SYSTEMS ARCHITECTS FILED SUIT IN THE UNITED STATES CLAIM COURT, SEEKING INJUNCTIVE AND DECLARATORY RELIEF ON THE SAME GROUNDS AS STATED IN ITS PROTEST. THE COMPLAINT WAS DISMISSED FOR LACK OF SUBJECT MATTER JURISDICTION. SYSTEMS ARCHITECTS, INC. V. UNITED STATES, NO. 171- 83C (CL.CT., APRIL 22, 1983).

GAO Contacts

Office of Public Affairs