[Protest of Air Force Rejection of Bid for Postal Services]

B-253852: Aug 25, 1993

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A firm protested the Air Force's rejection of its bid for postal services, contending that: (1) its secretary, a nongovernment employee, controlled all business transactions for the firm, since she was the firm's owner; (2) its president and vice-president, only acted as the firm's agents; (3) the Air Force should have informed it of the relevant regulation against contracting with government employees; and (4) its bid represented a substantial savings to the Air Force. GAO held that the: (1) Air Force reasonably determined that government employees controlled the protester's business, since the president, a government employee, signed the bid and acted on the firm's behalf; (2) protester had constructive notice of the procurement regulation; and (3) cost savings did not outweigh the policy against the government contracting with its own employees. Accordingly, the protest was denied.

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