B-141795, AUG. 18, 1960

B-141795, AUG. 18, 1960

TO OCEANSIDE LAUNDRY AND DRY CLEANERS, INC.:

REFERENCE IS MADE TO YOUR ATTORNEYS' LETTER OF JULY 26, 1960, AND ITS ENCLOSURES, REQUESTING RECONSIDERATION OF OUR DECISION OF JULY 13, 1960, WHICH HELD IN SUBSTANCE THAT THERE APPEARED NO VALID BASIS FOR OBJECTION BY OUR OFFICE TO THE ACTION OF THE ADMINISTRATIVE OFFICE IN REJECTING YOUR BID AND MAKING AWARD TO ANOTHER BIDDER UNDER INVITATION NO. IFB-123-96-60 ISSUED OCTOBER 15, 1959, BY THE U.S. NAVY PURCHASING OFFICE, LOS ANGELES, CALIFORNIA.

IN YOUR REQUEST FOR RECONSIDERATION, IT IS STATED THAT SUCH REQUEST IS MADE BECAUSE OUR DECISION OF JULY 13, 1960, WAS BASED IN PART "UPON LETTER OF AMERICAN INSTITUTE OF LAUNDERING, DATED APRIL 7, 1959, WHICH WAS REFUTED BY EXHIBIT "D" ATTACHED TO REPLY.' ALL OF THE STATEMENTS AS TO FACTS AND REASONS SUBMITTED BY YOU AND BY THE ADMINISTRATIVE OFFICE WERE GIVEN CAREFUL CONSIDERATION IN REACHING THE CONCLUSION STATED IN OUR DECISION OF JULY 13, 1960. IN THAT DECISION THERE ARE QUOTED STATEMENTS OF THE AMERICAN INSTITUTE OF LAUNDERING IN ITS LETTER OF APRIL 7, 1959, INDICATING THAT THE UNSATISFACTORY CONDITION OF THE TWO WASH CLOTHS WHICH HAD BEEN RECEIVED FOR EXAMINATION HAD RESULTED FROM IMPROPER WASHING OR REPEATED IMPROPER WASHINGS. IN THAT CONNECTION, IT WAS STATED ON PAGE 3 OF OUR DECISION "THAT A PRIOR REPORT BY THE AMERICAN INSTITUTE OF LAUNDERING AFTER EXAMINATION OF TWO WASH CLOTHS (PERHAPS THE REPORT WHICH IS QUOTED IN PART ABOVE) HAD BEEN BASED ON INADEQUATE INFORMATION.' ALSO ON PAGE 3 OF THE DECISION IT WAS STATED:

"* * * THE REPORTS OF THE AMERICAN INSTITUTE OF LAUNDERING ABOVE MENTIONED DO NOT PURPORT TO STATE A DEFINITE FINDING AS TO THE CAUSE OF THE DIFFICULTIES ENCOUNTERED IN CONNECTION WITH THE LAUNDRY SERVICE AND MUST BE REGARDED AS INCONCLUSIVE.'

THERE IS NOTED IN YOUR REQUEST FOR RECONSIDERATION THE COMMENT THAT THE OFFICE DECISIONS CITED IN OUR DECISION OF JULY 13, 1960,"WOULD REQUIRE THAT THE ADMINISTRATIVE OFFICER WOULD HAVE TO MAKE STATEMENTS OF FACT AND NOT OPINIONS AND IT IS URGED THAT THE REPLY HERETOFORE FILED HEREIN SHOWS THAT THE STATEMENT IS NOT BASED UPON FACTS BUT UPON ASSUMPTIONS AND OPINIONS WHICH ARE NOT JUSTIFIED BY THE SURROUNDING CIRCUMSTANCES.' THE TERM "ADMINISTRATIVE STATEMENT OF FACTS" AS USED IN THE DECISIONS IS INTENDED TO REFER TO A STATEMENT RELATIVE TO THE FACTS AND THERE IS NOT NECESSARILY ANY IMPLICATION THAT THE ADMINISTRATIVE STATEMENTS AS TO THE FACTS ARE TRUE STATEMENTS. HOWEVER, AS STATED IN OUR DECISION OF JULY 13, 1960, SUCH STATEMENTS ARE ACCEPTED AS TRUE "IN THE ABSENCE OF EVIDENCE SUFFICIENT TO OVERCOME THE PRESUMPTION OF THE CORRECTNESS REOF.' WHILE MR. NEWCOMB MAY HAVE BEEN SELECTED BY THE "AMERICA LAUNDRY DIGEST" TO RECEIVE THE "LAUNDRY MAN OF THE MONTH" AWARD, WE CANNOT ACCEPT THAT FACT AS SUFFICIENT EVIDENCE TO CONFUTE THE ADMINISTRATIVE REPORT.

UPON RECONSIDERATION OF THE ENTIRE MATTER, THERE IS NOT PERCEIVED ANY SOUND BASIS FOR ANY CONCLUSION OTHER THAN THAT STATED IN THE DECISION OF JULY 13, 1960, WHICH THEREFORE IS AFFIRMED.

IN YOUR TELEPHONE CONVERSATION WITH A REPRESENTATIVE OF THIS OFFICE RECENTLY YOU EXPRESSED CONCERN ABOUT THE POSSIBLE INTENTION OF THE COMMANDING OFFICER OF THE U.S. NAVAL HOSPITAL TO DEBAR YOUR CORPORATION FROM AWARD OF THE LAUNDRY CONTRACTS FOR THE CALENDAR YEARS 1960 AND 1961, REFERRED TO ON PAGE 2 OF OUR DECISION. THIS OFFICE HAS RECOGNIZED THAT THERE MAY BE CASES IN WHICH DEBARMENT OF A BIDDER IS NECESSARY AND PROPER AND IT HAS BEEN HELD THAT WHEN THERE IS A REASONABLE SHOWING THAT THE INTERESTS OF THE UNITED STATES REQUIRE THE DEBARMENT OF A BIDDER, THIS OFFICE WILL NOT QUESTION THE ADMINISTRATIVE ACTION WITH RESPECT THERETO, PROVIDED THE LENGTH OF TIME OF SUCH DEBARMENT IS DEFINITELY STATED AND NOT UNREASONABLE. SEE 7 COMP. GEN. 547; 9 ID. 23; 14 ID. 313. THERE IS NOT FOUND IN THE RECORD ANY INDICATION THAT THE REFERRED-TO RECOMMENDATION BY THE COMMANDING OFFICER OF THE HOSPITAL AS TO DEBARMENT THROUGH THE CALENDAR YEAR 1961 HAS BEEN APPROVED OR WILL BE APPROVED BY ANY OTHER REPRESENTATIVE OF THE GOVERNMENT. IF AND WHEN THAT SPECIFIC QUESTION ARISES AND IS PRESENTED HERE, OUR OFFICE WILL CONSIDER IT ON THE BASIS OF THE FACTS AND THE SITUATION EXISTING AT THAT TIME.