[Comments on NAVFAC Failure To Pay Claim for Bid Preparation Costs]

B-218204.2: Published: Feb 10, 1987. Publicly Released: Feb 10, 1987.

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In response to a congressional request, GAO commented on the Naval Facilities Engineering Command's (NAVFAC) refusal to pay a claim allowed by GAO for bid preparation costs. NAVFAC contended that it had no legal authority to pay such claims filed before January 15, 1985, since the Competition in Contracting Act of 1984 did not cover them. GAO noted that it had the authority to allow such a claim if the agency's conduct was arbitrary and capricious. GAO suggested that the claimant either file a complaint in Claims Court or await the outcome of litigation on a similar case.

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