B-168626, OCT. 12, 1970
Highlights
BID PROTEST - CONTRACT CANCELLATION ADVICE AS TO ACTION TO BE TAKEN AFTER COMPTROLLER GENERAL CONCLUDES THAT CONTRACT SHOULD BE CANCELLED BECAUSE MATTER OF PROTESTING BIDDER'S COMPETENCY SHOULD HAVE BEEN REFERRED TO SBA. WHERE AWARD IS ILLEGAL CONTRACT SHOULD BE CANCELLED NOTWITHSTANDING CONTRACTOR HAS APPEALED TO COMP. SINCE SBA HAS ADVISED THAT A CERTIFICATE OF COMPETENCY WOULD HAVE BEEN ISSUED TO PROTESTANT. SECRETARY: REFERENCE IS MADE TO A LETTER OF SEPTEMBER 8. IT IS ASKED WHETHER SUCH CANCELLATION ACTION SHOULD BE SUSPENDED IN VIEW OF OUR LETTER OF AUGUST 14. WOULD HAVE BEEN ISSUED A CERTIFICATE OF COMPETENCY HAD THE PROPER PROCEDURE BEEN FOLLOWED. UNDER THE CIRCUMSTANCES INVOLVED WAS ILLEGAL AND SHOULD NORMALLY BE CANCELLED.
B-168626, OCT. 12, 1970
BID PROTEST - CONTRACT CANCELLATION ADVICE AS TO ACTION TO BE TAKEN AFTER COMPTROLLER GENERAL CONCLUDES THAT CONTRACT SHOULD BE CANCELLED BECAUSE MATTER OF PROTESTING BIDDER'S COMPETENCY SHOULD HAVE BEEN REFERRED TO SBA. WHERE AWARD IS ILLEGAL CONTRACT SHOULD BE CANCELLED NOTWITHSTANDING CONTRACTOR HAS APPEALED TO COMP. GEN. HOWEVER IN THIS CASE, SINCE SBA HAS ADVISED THAT A CERTIFICATE OF COMPETENCY WOULD HAVE BEEN ISSUED TO PROTESTANT, ACTION TO CANCEL ILLEGAL CONTRACT SHOULD BE TAKEN.
TO MR. SECRETARY:
REFERENCE IS MADE TO A LETTER OF SEPTEMBER 8, 1970, FROM YOUR DEPUTY FOR PROCUREMENT REQUESTING OUR ADVICE WHETHER YOUR DEPARTMENT SHOULD PROCEED WITH CANCELLATION OF THE CONTRACT WITH STAN FLOWERS COMPANY, INCORPORATED, WHICH WE CONCURRED IN BY OUR DECISION, B-168626, JULY 30, 1970, 50 COMP. GEN. . IT IS ASKED WHETHER SUCH CANCELLATION ACTION SHOULD BE SUSPENDED IN VIEW OF OUR LETTER OF AUGUST 14, 1970, TO THE GENERAL COUNSEL FOR STAN FLOWERS COMPANY, INCORPORATED, STATING THAT WE WOULD GIVE THE MATTER FURTHER CONSIDERATION AFTER BEING APPRISED BY THE SMALL BUSINESS ADMINISTRATION WHETHER PACIFIC SHIPWRIGHTS, INCORPORATED, WOULD HAVE BEEN ISSUED A CERTIFICATE OF COMPETENCY HAD THE PROPER PROCEDURE BEEN FOLLOWED.
WE REMAIN OF THE OPINION THAT THE AWARD TO STAN FLOWERS COMPANY, INCORPORATED, UNDER THE CIRCUMSTANCES INVOLVED WAS ILLEGAL AND SHOULD NORMALLY BE CANCELLED. CF. 43 COMP. GEN. 298, 301 (1963). ADDITIONALLY, BY LETTER OF SEPTEMBER 25, 1970, THE SMALL BUSINESS ADMINISTRATION ADVISED THAT A CERTIFICATE OF COMPETENCY WOULD HAVE BEEN ISSUED TO PACIFIC SHIPWRIGHTS, INCORPORATED, IF THE CONTRACTING OFFICER HAD REFERRED THE MATTER TO THEM.
ACCORDINGLY, THE ACTION TO CANCEL THE CONTRACT WITH STAN FLOWERS COMPANY SHOULD BE TAKEN AT THIS TIME.