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B-201740, FEB 9, 1981

B-201740 Feb 09, 1981
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DIGEST: PROTEST QUESTIONING LOW BIDDER'S RESPONSIBILITY IN LIGHT OF BIDDER'S FILING UNDER CHAPTER XI OF BANKRUPTCY ACT AND PRIOR CONVICTIONS FOR FRAUD OF SOME OF ITS OFFICERS IS DISMISSED BECAUSE GAO DOES NOT REVIEW AFFIRMATIVE DETERMINATIONS OF RESPONSIBILITY EXCEPT UNDER CIRCUMSTANCES NOT APPLICABLE HERE. IT IS FINANCIALLY NONRESPONSIBLE AND SHOULD NOT RECEIVE THIS CONTRACT. OUR OFFICE WILL NOT REVIEW PROTESTS OF AFFIRMATIVE DETERMINATIONS OF RESPONSIBILITY UNLESS FRAUD IS ALLEGED ON THE PART OF PROCURING OFFICIALS OR THE SOLICITATION CONTAINS DEFINITIVE RESPONSIBILITY CRITERIA WHICH ALLEGEDLY HAVE NOT BEEN APPLIED. NEITHER EXCEPTION IS APPLICABLE HERE AND CONSEQUENTLY WE WILL NOT CONSIDER THIS PROTEST.

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B-201740, FEB 9, 1981

DIGEST: PROTEST QUESTIONING LOW BIDDER'S RESPONSIBILITY IN LIGHT OF BIDDER'S FILING UNDER CHAPTER XI OF BANKRUPTCY ACT AND PRIOR CONVICTIONS FOR FRAUD OF SOME OF ITS OFFICERS IS DISMISSED BECAUSE GAO DOES NOT REVIEW AFFIRMATIVE DETERMINATIONS OF RESPONSIBILITY EXCEPT UNDER CIRCUMSTANCES NOT APPLICABLE HERE.

MID AMERICA MOVERS, INC.:

MID AMERICA MOVERS, INC. PROTESTS THE PROPOSED AWARD OF A CONTRACT BY THE DEPARTMENT OF THE ARMY UNDER INVITATION FOR BIDS (IFB) DAKF 19 81-B-0006 TO THE APPARENT LOW BIDDER, COLEMAN AMERICAN. MID AMERICA CONTENDS THAT BECAUSE COLEMAN HAS FILED FOR BANKRUPTCY UNDER CHAPTER XI OF THE BANKRUPTCY ACT, 11 U.S.C. SEC. 1101 ET SEQ. (SUPP. III 1979), IT IS FINANCIALLY NONRESPONSIBLE AND SHOULD NOT RECEIVE THIS CONTRACT. MID AMERICA FURTHER CONTENDS THAT OFFICERS OF THE LOW BIDDER HAD PREVIOUSLY ENTERED GUILTY PLEAS TO CHARGES OF FRAUD AGAINST THE GOVERNMENT.

OUR OFFICE WILL NOT REVIEW PROTESTS OF AFFIRMATIVE DETERMINATIONS OF RESPONSIBILITY UNLESS FRAUD IS ALLEGED ON THE PART OF PROCURING OFFICIALS OR THE SOLICITATION CONTAINS DEFINITIVE RESPONSIBILITY CRITERIA WHICH ALLEGEDLY HAVE NOT BEEN APPLIED. FEDERAL DATA CORPORATION, B-196643, NOVEMBER 14, 1979, 79-2 CPD 353. NEITHER EXCEPTION IS APPLICABLE HERE AND CONSEQUENTLY WE WILL NOT CONSIDER THIS PROTEST.

WE POINT OUT, HOWEVER, THAT THE MERE FACT THAT A CONTRACTOR FILES A PETITION IN BANKRUPTCY UNDER CHAPTER XI OF THE BANKRUPTCY ACT DOES NOT REQUIRE A FINDING OF NONRESPONSIBILITY. HUNTER OUTDOOR PRODUCTS, INCORPORATED, 54 COMP.GEN. 276 (1974), 74-2 CPD 207, AND CASES CITED THEREIN. NEITHER DOES A PRIOR CONVICTION FOR FRAUD. B-169070, APRIL 24, 1970. SEE ALSO B-166118, MARCH 28, 1965.

THE PROTEST IS DISMISSED.

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