B-164836, JUN. 24, 1969

B-164836, JUN. 24, 1969

TO CREDIT SERVICE:

REFERENCE IS MADE TO YOUR LETTER OF APRIL 22, 1969, PROTESTING AGAINST THE INCLUSION OF SEVERAL SPECIFIC PROVISIONS IN INVITATION FOR BIDS NO. 69 -500, ISSUED BY THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, FEDERAL HOUSING ADMINISTRATION (FHA), FOR ITS 1969 REQUIREMENTS FOR CREDIT REPORTING SERVICES.

THIS PROTEST IS A SEQUEL TO OUR DECISION OF JANUARY 16, 1969, WHICH HELD THAT YOUR BID ON THE PRECEDING YEAR'S INVITATION FOR SUCH SERVICES COULD NOT BE REJECTED MERELY FOR THE FAILURE TO FURNISH, WITH THE BID, INFORMATION REQUIRED TO ESTABLISH YOUR QUALIFICATIONS FOR ACQUIRING THE NECESSARY CREDIT INFORMATION.

SUBSEQUENT TO THE RECEIPT OF YOUR PROTEST ON THE 1969 INVITATION, FHA ISSUED AMENDMENT NUMBER 2 TO THE INVITATION, WHICH ALLOWS A BIDDER TO REPRESENT ON ITS BID THAT THE NECESSARY CREDIT INFORMATION IS AVAILABLE TO THE BIDDER, AND THAT THE BIDDER WILL PROVIDE EVIDENCE OF AVAILABILITY UPON REQUEST. MOREOVER, THE INVITATION NOW LISTS, IN PARAGRAPH 3 (B) OF PAGE 8, ONLY TWO REQUIREMENTS FOR WHICH A BID WILL BE REJECTED AS NONRESPONSIVE FOR FAILURE TO COMPLY THEREWITH. THESE REQUIREMENTS ARE THAT THE BIDDER STATE ITS BID PRICE AND THE AREA TO BE SERVICED UNDER THE CONTRACT.

YOUR LETTER OF APRIL 22 ALSO RESTATES THE OBJECTION MADE IN YOUR INITIAL PROTEST CONCERNING THE REQUIREMENTS FOR REPORTING BASED SOLELY ON THE CREDIT RECORDS OF THE PRINCIPAL DEPARTMENT STORES, WHICH YOU ALLEGE IS ARBITRARY AND BIASED IN FAVOR OF DEPARTMENT STORE OWNED CREDIT BUREAUS. WHILE WE DID NOT OBJECT TO THE INCLUSION OF THIS REQUIREMENT FOR THE REASONS STATED IN OUR DECISION OF JANUARY 16, WE NOTE THAT THIS REQUIREMENT HAS BEEN SUBSTANTIALLY REWRITTEN IN PARAGRAPH 2 (A) (3), PAGE 7 OF AMENDMENT NUMBER 2. THE INVITATION NOW REQUIRES ACCESSIBILITY TO AND REPORTING OF THE CREDIT RECORDS OF "A COMBINED MINIMUM OF 75 PERCENT OF THE LARGER DEPARTMENT STORES, AND LARGER CONSUMER AND UNSECURED CREDIT GRANTORS IN THE AREAS COVERED BY THE BID.' WE HAVE BEEN ADVISED BY FHA THAT THE TERM "LARGER CONSUMER AND UNSECURED CREDIT GRANTORS" AS USED ABOVE REFERS TO SHOPPERS' CHARGE SERVICES AND FIRMS THAT INVESTIGATE THE CREDIT OF INDIVIDUALS AND ISSUE CHARGE CARDS AND BANK CREDIT CARDS HONORED AT RETAIL FIRMS, AS WELL AS BANKS, SAVINGS AND LOAN, AND OTHER FINANCIAL INSTITUTIONS WHICH EXTEND LARGE AMOUNTS OF CONSUMER AND UNSECURED CREDIT.

IN VIEW OF THE ABOVE ACTIONS TAKEN BY FHA FOR THE PURPOSE OF MEETING THE OBJECTIONS STATED IN OUR PRIOR DECISION, WE SEE NO BASIS FOR OBJECTING TO THE CURRENT INVITATION.