[Protest of NIH Contract Award for Construction Services]
Highlights
A firm protested a National Institutes of Health (NIH) contract award for construction services, contending that NIH: (1) improperly waived the solicitation's page and type size restrictions for some bidders; and (2) failed to take appropriate corrective action. GAO held that NIH: (1) properly waived the solicitation's page and type restrictions, since several bidders in the competitive range failed to meet the solicitation specifications; and (2) took appropriate corrective action, since it reopened discussions and allowed the bidders to modify their bids. Accordingly, the protest was denied.
A-3250, JULY 7, 1924, 4 COMP. GEN. 23
PUBLIC BUILDINGS-IMPROVEMENTS BY EXCHANGE OF EQUIPMENT THE APPROPRIATION IN THE ACT OF JULY 1, 1918, 40 STAT. 723, FOR THE "IMPROVEMENT OF CENTRAL POWER PLANT," AT THE BOSTON NAVY YARD, IS AVAILABLE FOR THE COST OF INSTALLING IN THE SUBMARINE BASE AT NEW LONDON, CONN., A 500-KILOWATT TURBO-ALTERNATOR IN ORDER TO PROCURE FROM THAT SUBMARINE BASE FOR INSTALLATION IN THE BOSTON NAVY YARD A 1,500 KILOWATT MACHINE RESULTING IN THE IMPROVEMENT OF THE BOSTON PLANT AT A CONSIDERABLE SAVING TO THE GOVERNMENT.
COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE NAVY, JULY 7, 1924:
THERE HAS BEEN RECEIVED YOUR LETTER OF JUNE 3, 1924, REQUESTING DECISION AS TO WHETHER YOU ARE AUTHORIZED TO USE THE APPROPRIATION MADE FOR IMPROVEMENTS TO THE CENTRAL POWER PLANT, NAVY YARD, BOSTON, MASS., FOR THE PURPOSE OF PAYING EXPENSES RENDERED NECESSARY IN INSTALLING A 500-KILOWATT TURBO-ALTERNATOR AT THE SUBMARINE BASE, NEW LONDON, CONN., TO TAKE THE PLACE OF A 1,500-KILOWATT ALTERNATOR REMOVED FROM THAT PLACE FOR USE AT THE BOSTON NAVY YARD IN FURTHERANCE OF THE PURPOSE FOR WHICH THE APPROPRIATION IN QUESTION WAS MADE.
THE APPROPRIATION INVOLVED APPEARS TO HAVE BEEN MADE BY THE ACT OF JULY 1, 1918, 400 STAT. 723, MAKING APPROPRIATIONS FOR PUBLIC WORKS, BUREAU OF YARDS AND DOCKS, NAVAL SERVICE, FOR THE FISCAL YEAR 1919, AND READS:
NAVY YARD, BOSTON, MASSACHUSETTS: IMPROVEMENT OF CENTRAL POWER PLANT, $425,000; WATER FRONT IMPROVEMENTS, $400,000; MACHINE SHOP AND FOUNDRY. $900,000; IN ALL, $1,725,000.
TOTAL PUBLIC WORKS, $46,694,375, AND THE AMOUNTS HEREIN APPROPRIATED THEREFOR, EXCEPT FOR REPAIRS AND PRESERVATION AT NAVY YARDS AND STATIONS, SHALL BE AVAILABLE UNTIL EXPENDED.
IT APPEARS FROM THE REPORT FROM THE BUREAU OF YARDS AND DOCKS, NAVY DEPARTMENT, THAT THE BOSTON NAVY YARD REQUIRED FOR ITS POWER PLANT A 1,500 -KILOWATT TURBO-ALTERNATOR, BUT FUNDS WERE NOT SUFFICIENT FOR THE PURCHASE OF A NEW MACHINE; THAT DURING THE WAR THREE TURBO-ALTERNATORS OF THE DESIRED TYPE HAD BEEN INSTALLED AT THE SUBMARINE BASE, NEW LONDON, CONN., BUT AFTER THE WAR, OWING TO THE LIGHT LOAD BEING CARRIED, WERE BEING OPERATED UNECONOMICALLY; THAT THE SUBMARINE BASE AGREED TO PERMIT THE TRANSFER OF ONE OF THE 1,500-KILOWATT MACHINES THERE INSTALLED TO THE NAVY YARD, BOSTON, PROVIDED THERE COULD BE INSTALLED IN ITS PLACE ONE 500- KILOWATT MACHINE, AND THAT A MACHINE OF THAT CAPACITY WAS AVAILABLE FOR TRANSFER AND WAS TRANSFERRED TO THE SUBMARINE BASE FROM THE NAVALAIR STATION, PENSACOLA, FLA., FOR INSTALLATION. IT IS STATED IN THIS REPORT THAT BY REASON OF THESE TRANSFERS FUNDS OF CONSIDERABLE AMOUNTS WERE SAVED TO THE GOVERNMENT AND THAT THE BENEFIT DERIVED FROM THE TRANSFERS AND THE INSTALLATIONS ARE FOR THE BENEFIT OF THE NAVY YARD, BOSTON, RESULTING IN AN IMPROVEMENT OF THE POWER PLANT AT THAT PLACE AND COULD NOT HAVE BEEN ACCOMPLISHED WITHOUT THE USE OF FUNDS AVAILABLE FOR THE IMPROVEMENT OF THE POWER PLANT AT THE BOSTON NAVY YARD.
THE QUESTION THEN FOR DECISION IS WHETHER THE FUNDS MADE AVAILABLE FOR IMPROVEMENTS TO THE CENTRAL POWER PLANT OF THE BOSTON NAVY YARD MAY BE USED FOR THE PURPOSE OF INSTALLING THE 500-KILOWATT ALTERNATOR AT THE SUBMARINE BASE AT NEW LONDON, CONN., TO TAKE THE PLACE OF THE 1,500- KILOWATT MACHINE TRANSFERRED TO THE BOSTON NAVY YARD. THE USE OF SUCH FUNDS FOR THE INDICATED PURPOSE IS AUTHORIZED ONLY IN THE EVENT THE PURPOSE FOR WHICH THE APPROPRIATION WAS MADE WAS THEREBY ACCOMPLISHED. THERE CAN BE NO QUESTION BUT WHAT THE MONEY APPROPRIATED FOR IMPROVEMENTS TO THE CENTRAL POWER PLANT, HAD THE BALANCE REMAINING BEEN SUFFICIENT FOR THE PURPOSE, WOULD HAVE BEEN AVAILABLE NOT ONLY FOR THE PURCHASE OF A NEW ALTERNATOR BUT FOR ALL EXPENSES CONNECTED WITH ITS INSTALLATION. HAD A NEW MACHINE BEEN PURCHASED INSTEAD OF UTILIZING A LIKE MACHINE AVAILABLE FOR THE PURPOSE, WHICH WAS INSTALLED AT ANOTHER STATION WHERE A SMALLER MACHINE WOULD SUFFICE FOR THE PRESENT AND FUTURE NEEDS OF THAT STATION, AN ECONOMIC WASTE WOULD HAVE RESULTED FROM THAT PROCEDURE, WHEREAS BY ADOPTING THE METHOD OF TRANSFERRING THE MACHINES TO THE PLACE WHERE THEIR GREATEST UTILITY COULD BE SECURED AND TAKEN ADVANTAGE OF, NEEDED IMPROVEMENTS TO THE CENTRAL POWER PLANT AT THE BOSTON NAVY YARD WERE ACCOMPLISHED AND AT THE SAME TIME A CONSIDERABLE AMOUNT OF GOVERNMENT FUNDS IS SHOWN TO HAVE BEEN SAVED IN THE OPERATION.
THE LAW REQUIRES AND THE ACCOUNTING OFFICERS HAVE UNIFORMLY HELD THAT WHERE FUNDS ARE APPROPRIATED FOR A PARTICULAR OBJECT THEY CAN ONLY BE USED FOR THE SPECIFIC OBJECT FOR WHICH THE APPROPRIATION IS MADE, BUT UNDER THE CIRCUMSTANCES IN THIS CASE, IT APPEARING THAT THE EXPENSE OF INSTALLING THE SMALLER ALTERNATOR TO TAKE THE PLACE OF THE ONE REMOVED TO THE BOSTON NAVY YARD BEING IN FURTHERANCE OF THE OBJECT FOR WHICH FUNDS WERE APPROPRIATED, AND OF NO BENEFIT TO THE SUBMARINE BASE AT NEW LONDON, IT MAY BE HELD THAT THE APPROPRIATION IN QUESTION IS AVAILABLE FOR THE PURPOSE OF MEETING THE EXPENSES RENDERED NECESSARY IN INSTALLING THE SMALLER ALTERNATOR AT THE SUBMARINE BASE, AS SUCH INSTALLATION IS BUT A MEANS OF ACCOMPLISHING THE OBJECT OR PURPOSE FOR WHICH SAID APPROPRIATION WAS MADE, AND YOU ARE ADVISED ACCORDINGLY.