B-150887, APR. 25, 1963
Highlights
TO THE SECRETARY OF THE AIR FORCE: REFERENCE IS MADE TO A LETTER DATED MARCH 21. WE ARE ENCLOSING A COPY OF OUR DECISION OF TODAY TO MR. IN THE ADMINISTRATIVE REPORT ON THE PROTEST OUR ATTENTION WAS INVITED TO THE FACT THAT THE CONTRACT TO BE AWARDED WOULD COVER SERVICES TO BE PERFORMED DURING A PERIOD WHICH OVERLAPS TWO FISCAL YEARS. IS THAT. THE NEW CONTRACTOR WOULD HAVE TO HIRE LABOR AT THE HEIGHT OF ALASKA'S BRIEF CONSTRUCTION SEASON WHEN WAGES ARE EXCEEDINGLY HIGH AND WHEN WORKERS ARE EXTREMELY HARD TO FIND. IT IS STATED THAT APPROPRIATE ACTION WILL BE TAKEN TO PROVIDE IN THE CONTRACT THAT PAYMENT FOR WORK PERFORMED IN FISCAL YEAR 1964 WILL BE CONTINGENT AND WILL REMAIN SO UNLESS AND UNTIL FISCAL YEAR 1964 MONEY IS AVAILABLE.
B-150887, APR. 25, 1963
TO THE SECRETARY OF THE AIR FORCE:
REFERENCE IS MADE TO A LETTER DATED MARCH 21, 1963, AFSPPCA, FROM THE CHIEF, PROCUREMENT OPERATIONS DIVISION, DIRECTORATE, PROCUREMENT POLICY, DCS/S AND L, FURNISHING THE REPORT REQUESTED IN OUR LETTER TO YOU OF MARCH 5, 1963, ON THE PROTEST OF MR. JOE BLACKARD, ANCHORAGE, ALASKA, AGAINST THE MAKING OF A CONTRACT AWARD UNDER INVITATION FOR BIDS NO. 65-517-63-4, ISSUED DECEMBER 20, 1962, BY HEADQUARTERS ALASKAN AIR COMMAND, ELMENDORF AIR FORCE BASE.
WE ARE ENCLOSING A COPY OF OUR DECISION OF TODAY TO MR. BLACKARD'S ATTORNEY, DENYING THE PROTEST.
IN THE ADMINISTRATIVE REPORT ON THE PROTEST OUR ATTENTION WAS INVITED TO THE FACT THAT THE CONTRACT TO BE AWARDED WOULD COVER SERVICES TO BE PERFORMED DURING A PERIOD WHICH OVERLAPS TWO FISCAL YEARS. THE STATED REASON FOR NOT PROPOSING TO CONTRACT STRICTLY ON A FISCAL-YEAR BASIS, UNDER WHICH NO OBLIGATION WOULD BE INCURRED IN ADVANCE OF APPROPRIATIONS, IS THAT, IF A NEW CONTRACT SHOULD BE AWARDED IN JULY, THE NEW CONTRACTOR WOULD HAVE TO HIRE LABOR AT THE HEIGHT OF ALASKA'S BRIEF CONSTRUCTION SEASON WHEN WAGES ARE EXCEEDINGLY HIGH AND WHEN WORKERS ARE EXTREMELY HARD TO FIND. IT IS STATED THAT APPROPRIATE ACTION WILL BE TAKEN TO PROVIDE IN THE CONTRACT THAT PAYMENT FOR WORK PERFORMED IN FISCAL YEAR 1964 WILL BE CONTINGENT AND WILL REMAIN SO UNLESS AND UNTIL FISCAL YEAR 1964 MONEY IS AVAILABLE.
CONCERNING THAT FEATURE OF THE CASE, THE CONTRACT SHOULD NOT ONLY BE CONTINGENT UPON THE AVAILABILITY OF FISCAL YEAR 1964 FUNDS FOR WORK TO BE PERFORMED IN THAT FISCAL YEAR, BUT SHOULD ALSO PROVIDE THAT SERVICES AFTER JUNE 30, 1963, WILL NOT BE REQUIRED OR REQUESTED UNLESS AND UNTIL FUNDS ARE PROVIDED THEREFOR AND THE CONTRACTOR IS SO NOTIFIED IN WRITING. SEE LEITER V. UNITED STATES, 271 U.S. 204. WE HAVE NO OBJECTION TO CONTRACTING ON THAT BASIS IN THE CIRCUMSTANCES HERE INVOLVED PROVIDED YOU DETERMINE ADMINISTRATIVELY PRIOR TO NOTIFICATION TO THE CONTRACTOR THEREOF THAT NO USEFUL PURPOSE WOULD BE SERVED BY ADVERTISING AGAIN.