B-157050, AUG. 9, 1965
Highlights
TO POST PATROL AGENCY: REFERENCE IS MADE TO YOUR LETTER OF JUNE 17. YOU CONTEND THAT THE LOW BIDDER IS A SUBDIVISION OF BURNS DETECTIVE AGENCY. WHICH HELD THAT A CORPORATION ORGANIZED TO OPERATE SOLELY AS A PROTECTIVE AGENCY AND MAINTAINING ITS SEPARATE CORPORATE IDENTITY DID NOT COME WITHIN THE STATUTORY PROHIBITION MERELY BY REASON OF THE FACT THAT IT WAS A WHOLLY-OWNED SUBSIDIARY OF A CORPORATION WHICH WAS A DETECTIVE AGENCY. WE ARE ENCLOSING FOR YOUR INFORMATION A COPY OF OUR LETTER OF TODAY TO THE SECRETARY OF THE AIR FORCE REGARDING THE APPLICABILITY OF OUR DECISION OF MARCH 18. YOU ARE ADVISED THAT UNDER THE SMALL BUSINESS ACT. THE QUESTION OF WHETHER ANY PROCUREMENT SHOULD BE RESTRICTED TO SMALL BUSINESS IS FOR DETERMINATION BY THE PROCURING AGENCY AND THE SMALL BUSINESS ADMINISTRATION.
B-157050, AUG. 9, 1965
TO POST PATROL AGENCY:
REFERENCE IS MADE TO YOUR LETTER OF JUNE 17, 1965, ADDRESSED TO REPRESENTATIVE GLENARD P. LIPSCOMB, PROTESTING CONSIDERATION OF A LOW BID SUBMITTED UNDER INVITATION FOR BIDS NO. 04-611-65-254, BY BURNS SECURITY SYSTEMS, INCORPORATED, FOR THE PERFORMANCE OF SECURITY GUARD SERVICES AT EDWARDS AIR FORCE BASE, CALIFORNIA.
BASICALLY, YOU CONTEND THAT THE LOW BIDDER IS A SUBDIVISION OF BURNS DETECTIVE AGENCY, INCORPORATED (WILLIAM J. BURNS INTERNATIONAL DETECTIVE AGENCY, INCORPORATED), AND, THEREFORE, COMES WITHIN THE DETECTIVE AGENCY EMPLOYMENT PROHIBITION OF THE ACT OF MARCH 3, 1893, 5 U.S.C. 53, TO WHICH YOU REFER AS THE PINKERTON ACT. IN THIS CONNECTION, YOU CITE OUR DECISION B-153681, MARCH 18, 1965, 44 COMP. GEN. - , WHICH HELD THAT A CORPORATION ORGANIZED TO OPERATE SOLELY AS A PROTECTIVE AGENCY AND MAINTAINING ITS SEPARATE CORPORATE IDENTITY DID NOT COME WITHIN THE STATUTORY PROHIBITION MERELY BY REASON OF THE FACT THAT IT WAS A WHOLLY-OWNED SUBSIDIARY OF A CORPORATION WHICH WAS A DETECTIVE AGENCY, AND YOU ASSERT THAT SUCH DECISION VIOLATES THE STATUTORY PROVISION. ADDITIONALLY, YOU CONTEND THAT THE PROCUREMENT SHOULD BE RESTRICTED TO SMALL BUSINESS CONCERNS.
IN A REPORT DATED JULY 22, THE DEPARTMENT OF THE AIR FORCE HAS ADVISED OUR OFFICE THAT IN LINE WITH OUR DECISION B-155990, JUNE 8, 1965, IN A SIMILAR PROCUREMENT, THE EXPERIENCE REQUIREMENT IN THE IFB HAS BEEN DETERMINED TO BE UNDULY RESTRICTIVE OF COMPETITION, AND THE IFB HAS THEREFORE BEEN CANCELLED. WHILE SUCH ACTION RENDERS YOUR PROTEST MOOT, WE ARE ENCLOSING FOR YOUR INFORMATION A COPY OF OUR LETTER OF TODAY TO THE SECRETARY OF THE AIR FORCE REGARDING THE APPLICABILITY OF OUR DECISION OF MARCH 18, 1965, IN THE EVENT BURNS SECURITY SHOULD BE LOW BIDDER AFTER READVERTISEMENT OF THE PROCUREMENT.
CONCERNING SET ASIDE OF THE PROCUREMENT FOR SMALL BUSINESS, YOU ARE ADVISED THAT UNDER THE SMALL BUSINESS ACT, THE QUESTION OF WHETHER ANY PROCUREMENT SHOULD BE RESTRICTED TO SMALL BUSINESS IS FOR DETERMINATION BY THE PROCURING AGENCY AND THE SMALL BUSINESS ADMINISTRATION, AND NOT BY OUR OFFICE.