Complaints Concerning Contracts Awarded Under Federal Grants

B-191498: Mar 5, 1979

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An unsuccessful bidder protested a contract awarded for labor, material, and equipment to construct a regional health center under an Economic Development Administration grant, claiming that the use by the grantee of a state resident vendor preference statute was in violation of grant requirements for free and open competition. The protester also claimed compensation for bid preparation costs and anticipated profits. Judicial uncertainty existed regarding the constitutionality of "buy-state" statutes, and procurement policy did not explicitly preclude such award. It was inappropriate to decide whether a disappointed bidder on a federal grantee procurement could recover bid preparation costs, and there was no legal basis for allowing recovery of anticipated profits. The complaint and claims were denied.