B-127947, OCT. 17, 1956

B-127947: Oct 17, 1956

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INC.: REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 12. HAVE DEBARRED YOU FROM BIDDING ON CERTAIN ADVERTISED REQUIREMENTS OF THE GOVERNMENT. WE ARE ADVISED THAT THE GENERAL SERVICES ADMINISTRATION HAS FURNISHED YOU A COPY OF ITS GENERAL REGULATION NO. 15. THIS REGULATION WAS ISSUED UNDER THE AUTHORITY OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949. YOU WILL OBSERVE THAT SECTION 5A (4) OF THE REGULATION PRESCRIBES AS ONE CAUSE FOR THE DEBARMENT OF A BIDDER "DEBARMENT BY SOME OTHER EXECUTIVE AGENCY.'. IS SHOWN AS "FAILURE TO MEET CONTRACTUAL DELIVERY SCHEDULES.'. IS ONE OF THE CAUSES FOR DEBARMENT LISTED UNDER SECTION 5 OF GENERAL REGULATION NO. 15.

B-127947, OCT. 17, 1956

TO MANHATTAN LIGHTING EQUIPMENT CO., INC.:

REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 12, 1956, WHEREIN YOU COMPLAIN THAT GOVERNMENTAL DEPARTMENTS, OTHER THAN DEFENSE AGENCIES, HAVE DEBARRED YOU FROM BIDDING ON CERTAIN ADVERTISED REQUIREMENTS OF THE GOVERNMENT.

WE ARE ADVISED THAT THE GENERAL SERVICES ADMINISTRATION HAS FURNISHED YOU A COPY OF ITS GENERAL REGULATION NO. 15, WHICH PRESCRIBES POLICIES AND PROCEDURES FOR DEBARMENT OF BIDDERS BY THE EXECUTIVE AGENCIES OF THE GOVERNMENT. THIS REGULATION WAS ISSUED UNDER THE AUTHORITY OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949, 63 STAT. 383, AND THE PROVISIONS RELATIVE TO ADMINISTRATIVE DEBARMENTS (AS DISTINGUISHED FROM THOSE SPECIFICALLY REQUIRED BY VARIOUS STATUTES) APPEAR TO BE GENERALLY IN ACCORD WITH THE PRINCIPLES AND GUIDES ESTABLISHED BY LONG-STANDING DECISIONS OF OUR OFFICE. SEE 7 COMP. GEN. 547, 9 ID. 23, 14 ID. 313.

YOU WILL OBSERVE THAT SECTION 5A (4) OF THE REGULATION PRESCRIBES AS ONE CAUSE FOR THE DEBARMENT OF A BIDDER "DEBARMENT BY SOME OTHER EXECUTIVE AGENCY.' THE CONDITIONS PRESCRIBED IN SECTION 5B MAKE IT CLEAR THAT DEBARMENT BY ONE AGENCY DOES NOT AUTOMATICALLY PREVENT CONSIDERATION OF BIDS OF THE DEBARRED BIDDER BY ANY OTHER AGENCY, BUT THAT ACTION MUST BE TAKEN BY EACH AGENCY, WITH THE APPROVAL OF THE AGENCY HEAD OR HIS AUTHORIZED REPRESENTATIVE. SUCH ACTION MAY, HOWEVER, BE TAKEN SOLELY ON THE BASIS OF THE ORIGINAL DEBARMENT.

THE REASON ASSIGNED FOR YOUR DEBARMENT BY THE DEPARTMENT OF THE AIR FORCE FOR THE THREE-YEAR PERIOD BEGINNING MY 14, 1956, IS SHOWN AS "FAILURE TO MEET CONTRACTUAL DELIVERY SCHEDULES.' THIS, OF COURSE, IS ONE OF THE CAUSES FOR DEBARMENT LISTED UNDER SECTION 5 OF GENERAL REGULATION NO. 15, AND THE DEBARMENT ACTION TAKEN BY THE DEPARTMENT OF THE AIR FORCE MAY, UNDER THE REGULATION, BE USED AS THE GROUND OF YOUR DEBARMENT BY OTHER GOVERNMENTAL ESTABLISHMENTS, ACTING WITHIN THE DISCRETIONARY AUTHORITY CONFERRED UNDER THE SAID REGULATION. EVEN WITHOUT SUCH FORMAL DEBARMENT, OTHER AGENCIES MAY PROPERLY CONSIDER YOUR DEBARMENT BY THE AIR FORCE AS A FACTOR AFFECTING YOUR ELIGIBILITY FOR AWARD AS A "RESPONSIBLE" BIDDER. EITHER CASE, THE ADMINISTRATIVE ACTION WOULD NOT BE SUBJECT TO ANY PROPER OBJECTION BY OUR OFFICE EXCEPT FOR SUCH GROSS ABUSE OF THE ADMINISTRATIVE DISCRETION AS WOULD AMOUNT TO BAD FAITH.

ACCORDINGLY, THERE APPEARS TO BE NO SOUND OR LEGAL BASIS FOR ANY ACTION BY US AT THIS TIME IN CONNECTION WITH YOUR COMPLAINT.