B-147819, FEB. 21, 1962

B-147819: Feb 21, 1962

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FAIR WEATHER: RECEIPT IS ACKNOWLEDGED OF YOUR LETTER DATED FEBRUARY 9. 500 TO COVER THE FINANCIAL LOSS WHICH YOU STATE WAS SUSTAINED. THE GOVERNMENT HAS THE RIGHT TO REJECT ALL BIDS RECEIVED IN RESPONSE TO AN INVITATION IF IT IS DETERMINED TO BE IN THE GOVERNMENT'S INTEREST TO DO SO. SUCH A DETERMINATION IS WITHIN THE DISCRETION OF THE CONTRACTING OFFICER OR OTHER RESPONSIBLE GOVERNMENT OFFICIALS AND. YOUR CONTENTIONS THAT YOUR BID WAS NOT TOO LOW OR AS TO THE ALLEGED INCONSISTENT REASONS GIVEN YOU FOR WITHDRAWING THE ITEMS FROM AWARD ARE NOT MATERIAL. HERE AGAIN IT WAS POINTED OUT IN OUR DECISION OF JANUARY 16. THAT THE MANNER IN WHICH THE BANK GUARANTEE FURNISHED BY YOU WAS EXECUTED DID NOT APPEAR TO CONSTITUTE SUCH A BID DEPOSIT AS WAS LEGALLY SUFFICIENT TO PROTECT THE INTERESTS OF THE GOVERNMENT WITHIN APPLICABLE REQUIREMENTS.

B-147819, FEB. 21, 1962

TO MR. JOHN G. FAIR WEATHER:

RECEIPT IS ACKNOWLEDGED OF YOUR LETTER DATED FEBRUARY 9, 1962, IN REGARD TO OUR DECISION DATED JANUARY 16, 1962, SUSTAINING THE DISALLOWANCE OF YOUR CLAIM FOR APPROXIMATELY $37,500 ALLEGEDLY REPRESENTING DAMAGES SUSTAINED BY YOU AS A RESULT OF THE DEPARTMENT OF THE ARMY'S FAILURE TO ACCEPT YOUR BIDS FOR THE PURCHASE OF CERTAIN ITEMS OF GOVERNMENT SURPLUS PROPERTY. YOU NOW SEEK PAYMENT OF YOUR CLAIM IN THE REDUCED AMOUNT OF $7,500 TO COVER THE FINANCIAL LOSS WHICH YOU STATE WAS SUSTAINED.

REGARDING THE REJECTION OF YOUR BID FOR ITEMS NOS. 196 AND 197 UNDER INVITATION NO. DA-EUC-91-569-S-59-11, OUR DECISION OF JANUARY 16, 1962, DIRECTED YOUR ATTENTION TO THE FACT THAT, UNDER THE AUTHORITY CITED, THE GOVERNMENT HAS THE RIGHT TO REJECT ALL BIDS RECEIVED IN RESPONSE TO AN INVITATION IF IT IS DETERMINED TO BE IN THE GOVERNMENT'S INTEREST TO DO SO. SUCH A DETERMINATION IS WITHIN THE DISCRETION OF THE CONTRACTING OFFICER OR OTHER RESPONSIBLE GOVERNMENT OFFICIALS AND, THEREFORE, SINCE WE FOUND NO ABUSE IN THE EXERCISE OF SUCH DISCRETION BY THE ARMY GENERAL DEPOT IN REJECTING YOUR BID ON ITEMS NOS. 196 AND 197, YOUR CONTENTIONS THAT YOUR BID WAS NOT TOO LOW OR AS TO THE ALLEGED INCONSISTENT REASONS GIVEN YOU FOR WITHDRAWING THE ITEMS FROM AWARD ARE NOT MATERIAL.

WITH RESPECT TO THE REJECTION OF YOUR BID FOR ITEMS NOS. 127, 129, 131 AND 132 UNDER INVITATION NO. DA-EUC-91-569-S-59-16, YOU REPEAT THE CONTENTIONS SET FORTH IN YOUR LETTER DATED DECEMBER 8, 1961, AS TO THE REASONS FOR CONSIDERING THE BANK GUARANTEE AS AN ACCEPTABLE BID DEPOSIT. HERE AGAIN IT WAS POINTED OUT IN OUR DECISION OF JANUARY 16, 1962, THAT THE MANNER IN WHICH THE BANK GUARANTEE FURNISHED BY YOU WAS EXECUTED DID NOT APPEAR TO CONSTITUTE SUCH A BID DEPOSIT AS WAS LEGALLY SUFFICIENT TO PROTECT THE INTERESTS OF THE GOVERNMENT WITHIN APPLICABLE REQUIREMENTS. THEREFORE, THE FACT THAT SUCH A DEFICIENT BID DEPOSIT MAY HAVE BEEN PREVIOUSLY IMPROPERLY ACCEPTED AND THE FACT THAT BANK GUARANTEES GENERALLY MAY BE ACCEPTABLE WHEN PROPERLY EXECUTED APPEARS TO HAVE NO PARTICULAR SIGNIFICANCE TO THE FACTS AS REPORTED IN THIS CASE.

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