Skip to main content

B-211755, JAN 25, 1984

B-211755 Jan 25, 1984
Jump To:
Skip to Highlights

Highlights

DIGEST: WHERE PROTESTER'S ALLEGATION THAT PROCURING AGENCY IMPROPERLY INTENDS TO AWARD A CONTRACT TO A BIDDER THAT IS SUBSTANTIALLY OWNED OR CONTROLLED BY GOVERNMENT EMPLOYEES IS NOT SUPPORTED BY EVIDENCE IN THE RECORD. IASO CONTENDS THAT SMOA IS SUBSTANTIALLY OWNED OR CONTROLLED BY GOVERNMENT EMPLOYEES AND AWARD TO SUCH A FIRM IS CONTRARY TO PUBLIC POLICY. THREE BIDS WERE RECEIVED IN RESPONSE TO THE IFB. THE LOW BID WAS SUBMITTED BY TAD SUPPORT SERVICES. THAT FIRM WAS DETERMINED TO BE NONRESPONSIBLE AND CONSEQUENTLY ITS BID WAS REJECTED. THE NEXT LOW BID WAS SUBMITTED BY SMOA. THE THIRD LOW BID WAS SUBMITTED BY IASO. IASO ASSERTS THAT SMOA'S OFFICERS AND MEMBERS ARE ACTIVE DUTY MILITARY PERSONNEL AND RETIRED GOVERNMENT EMPLOYEES AND THEREFORE THE ASSOCIATION IS SUBSTANTIALLY OWNED OR CONTROLLED BY GOVERNMENT EMPLOYEES.

View Decision

B-211755, JAN 25, 1984

DIGEST: WHERE PROTESTER'S ALLEGATION THAT PROCURING AGENCY IMPROPERLY INTENDS TO AWARD A CONTRACT TO A BIDDER THAT IS SUBSTANTIALLY OWNED OR CONTROLLED BY GOVERNMENT EMPLOYEES IS NOT SUPPORTED BY EVIDENCE IN THE RECORD, PROTESTER HAS FAILED TO MEET ITS BURDEN OF PROOF TO SHOW THAT AWARD TO THAT FIRM WOULD BE CONTRARY TO REGULATORY PROVISION WHICH GENERALLY PRECLUDES ENTERING INTO CONTRACTS WITH FIRMS SUBSTANTIALLY OWNED OR CONTROLLED BY GOVERNMENT EMPLOYEES.

INTERNATIONAL ALLIANCE OF SPORTS OFFICIALS:

INTERNATIONAL ALLIANCE OF SPORTS OFFICIALS (IASO) PROTESTS THE PROPOSED AWARD OF A CONTRACT TO SOUTHERN MARYLAND OFFICIALS ASSOCIATION (SMOA) UNDER INVITATION FOR BIDS NO. N00421-83-B-0143 ISSUED BY THE DEPARTMENT OF THE NAVY FOR SPORTS OFFICIATING SERVICES AT THE NAVAL AIR STATION, PATUXENT RIVER, MARYLAND. IASO CONTENDS THAT SMOA IS SUBSTANTIALLY OWNED OR CONTROLLED BY GOVERNMENT EMPLOYEES AND AWARD TO SUCH A FIRM IS CONTRARY TO PUBLIC POLICY.

WE DENY THE PROTEST.

THREE BIDS WERE RECEIVED IN RESPONSE TO THE IFB. THE LOW BID WAS SUBMITTED BY TAD SUPPORT SERVICES, BUT THAT FIRM WAS DETERMINED TO BE NONRESPONSIBLE AND CONSEQUENTLY ITS BID WAS REJECTED. THE NEXT LOW BID WAS SUBMITTED BY SMOA, AND THE THIRD LOW BID WAS SUBMITTED BY IASO.

IASO ASSERTS THAT SMOA'S OFFICERS AND MEMBERS ARE ACTIVE DUTY MILITARY PERSONNEL AND RETIRED GOVERNMENT EMPLOYEES AND THEREFORE THE ASSOCIATION IS SUBSTANTIALLY OWNED OR CONTROLLED BY GOVERNMENT EMPLOYEES. MAINTAINS THAT AS A CONSEQUENCE AWARD TO SMOA WOULD VIOLATE DEFENSE ACQUISITION REGULATION SEC. 1-302.6, WHICH PROVIDES THAT NO AGENCY KNOWINGLY SHALL ENTER INTO A CONTRACT WITH EMPLOYEES OF THE GOVERNMENT OR A BUSINESS ORGANIZATION THAT IS SUBSTANTIALLY OWNED OR CONTROLLED BY GOVERNMENT EMPLOYEES EXCEPT FOR THE MOST COMPELLING REASON, SUCH AS WHERE THE NEEDS OF THE GOVERNMENT CANNOT REASONABLY BE OTHERWISE SUPPLIED.

IT IS WELL ESTABLISHED THAT THE PROTESTER HAS THE BURDEN OF PROVING ITS CASE. NATIONAL SERVICE CORPORATION, B-205629, JULY 26, 1982, 82-2 CPD 76. IASO, HOWEVER, HAS NOT PRESENTED ANY INFORMATION TO SUPPORT ITS ALLEGATIONS THAT SMOA'S OFFICERS ARE GOVERNMENT EMPLOYEES AND THAT SMOA IS "SUBSTANTIALLY OWNED OR CONTROLLED" BY THE GOVERNMENT EMPLOYEES. CONTRAST, THE NAVY HAS PRESENTED INFORMATION INDICATING THAT ONLY A MINORITY OF SMOA'S MEMBERS AND NONE OF ITS OFFICERS ARE GOVERNMENT EMPLOYEES, AND THAT NONE OF ITS GOVERNMENT EMPLOYEE MEMBERS WOULD PARTICIPATE IN THE PERFORMANCE OF THIS CONTRACT. SINCE THE RECORD DOES NOT INCLUDE ANY EVIDENCE TO SUPPORT IASO'S CONTENTION THAT SMOA IS SUBSTANTIALLY OWNED OR CONTROLLED BY GOVERNMENT EMPLOYEES, THIS ALLEGATION MUST BE REJECTED. SEE INTERNATIONAL ALLIANCE OF SPORTS OFFICIALS, B-210491, ET AL., JANUARY 10, 1984, 84-1 CPD ; NATIONAL SERVICE CORPORATION, SUPRA.

THE PROTEST IS DENIED.

GAO Contacts

Office of Public Affairs