B-184916, OCT 10, 1975
Highlights
PROTEST ALLEGING THAT AGENCY'S COST COMPARISON UTILIZED TO SUPPORT DETERMINATION TO RETAIN FOOD SERVICE OPERATION IN-HOUSE RATHER THAN CONTRACTING WITH COMMERCIAL SOURCE WAS IMPROPER IS NOT FOR CONSIDERATION. SINCE APPLICABLE PROVISIONS OF OMB CIRCULAR A-76 ARE REGARDED AS A MATTER OF EXECUTIVE POLICY WHICH DO NOT ESTABLISH LEGAL RIGHTS AND RESPONSIBILITIES AND WHICH ARE NOT WITHIN GAO DECISION FUNCTIONS. ONE OF WHICH IS WHERE PROCUREMENT OF THE SERVICE FROM A COMMERCIAL SOURCE WILL RESULT IN HIGHER COST TO THE GOVERNMENT. IT WAS STATED: "*** WE HAVE ALWAYS REGARDED THE PROVISIONS OF CIRCULAR A-76 AS MATTERS OF EXECUTIVE POLICY WHICH DO NOT ESTABLISH LEGAL RIGHTS AND RESPONSIBILITIES AND WHICH ARE NOT WITHIN THE DECISION FUNCTIONS OF THE GENERAL ACCOUNTING OFFICE. ***" SEE ALSO B-179943.
B-184916, OCT 10, 1975
PROTEST ALLEGING THAT AGENCY'S COST COMPARISON UTILIZED TO SUPPORT DETERMINATION TO RETAIN FOOD SERVICE OPERATION IN-HOUSE RATHER THAN CONTRACTING WITH COMMERCIAL SOURCE WAS IMPROPER IS NOT FOR CONSIDERATION, SINCE APPLICABLE PROVISIONS OF OMB CIRCULAR A-76 ARE REGARDED AS A MATTER OF EXECUTIVE POLICY WHICH DO NOT ESTABLISH LEGAL RIGHTS AND RESPONSIBILITIES AND WHICH ARE NOT WITHIN GAO DECISION FUNCTIONS.
MELDICK SERVICES, INC.:
MELDICK SERVICES, INC. (MELDICK), HAS PROTESTED THE DECISION BY THE DEPARTMENT OF THE AIR FORCE TO RETAIN THE FOOD SERVICE OPERATION AT ANDREWS AIR FORCE BASE IN-HOUSE RATHER THAN CONTRACTING WITH IT.
OFFICE OF MANAGEMENT AND BUDGET (OMB) CIRCULAR A-76 AND DEPARTMENT OF DEFENSE (DOD) IMPLEMENTING DIRECTIVES (DOD INSTRUCTION 4100.33, AIR FORCE REGULATION 26-12) EXPRESS A GENERAL POLICY PREFERENCE FOR CONTRACTING WITH PRIVATE, COMMERCIAL ENTERPRISES AS OPPOSED TO THE GOVERNMENT'S PERFORMING THE REQUIRED SERVICES IN-HOUSE. HOWEVER, THE CIRCULAR PROVIDES SPECIFIC CIRCUMSTANCES UNDER WHICH THE GOVERNMENT MAY PROVIDE A COMMERCIAL SERVICE FOR ITS OWN USE, ONE OF WHICH IS WHERE PROCUREMENT OF THE SERVICE FROM A COMMERCIAL SOURCE WILL RESULT IN HIGHER COST TO THE GOVERNMENT. OMB CIRCULAR A-76 PARA. 5E. THE AIR FORCE, AFTER ANALYZING THE COMPARATIVE COST, FOUND THAT RETAINING THE FOOD SERVICE IN-HOUSE WOULD BE MORE ECONOMICAL THAN CONTRACTING WITH MELDICK. HOWEVER, MELDICK ALLEGES THAT THE COST ANALYSIS OVERSTATED THE CONTRACT COSTS AND UNDERSTATED THE IN- HOUSE COSTS. IN THAT CONNECTION, IN 53 COMP. GEN. 86, 88 (1973), IT WAS STATED:
"*** WE HAVE ALWAYS REGARDED THE PROVISIONS OF CIRCULAR A-76 AS MATTERS OF EXECUTIVE POLICY WHICH DO NOT ESTABLISH LEGAL RIGHTS AND RESPONSIBILITIES AND WHICH ARE NOT WITHIN THE DECISION FUNCTIONS OF THE GENERAL ACCOUNTING OFFICE. ***"
SEE ALSO B-179943, DECEMBER 26, 1973; GENERAL DATACOMM INDUSTRIES, INC., B-182556, APRIL 9, 1975, 75-1 CPD 218; AND GLOBE AIR, INC., B 183396, JUNE 26, 1975, 75-1 CPD 389.
ACCORDINGLY, WE WILL NOT CONSIDER THE PROTEST ON THE MERITS AND ARE CLOSING OUR FILE ON THE MATTER.