B-164561, AUG. 19, 1968

B-164561, AUG. 19, 1968

TO MR. POSTMASTER GENERAL:

YOUR LETTER OF JUNE 12, 1968, REQUESTED OUR DECISION AS TO THE LEGALITY OF AN AWARD FOR THE FURNISHING OF A QUANTITY OF 40 AND 26-FOOT TRAILERS ON A DAILY RENTAL BASIS TO DUFFY LEASING OF CALIFORNIA CORP., UNDER INVITATION FOR BIDS NO. 68-1, ISSUED ON FEBRUARY 8, 1968, BY THE SAN FRANCISCO REGIONAL OFFICE.

THE RECORD SHOWS THAT THE CONTRACTING OFFICER DETERMINED IN ACCORDANCE WITH FEDERAL PROCUREMENT REGULATIONS 1-1.310, ET SEQ. -- GOVERNING THE DETERMINATION OF RESPONSIBILITY OF PROSPECTIVE GOVERNMENT CONTRACTORS -- THAT ECONO SERVICE LEASING COMPANY, THE APPARENT LOW BIDDER, WAS NOT A RESPONSIBLE BIDDER. IN VIEW OF THE ALLEGED SMALL BUSINESS STATUS OF ECONO FOR THE PURPOSES OF THIS PROCUREMENT, WE REQUESTED THE SMALL BUSINESS ADMINISTRATION TO DETERMINE, UNDER ITS STATUTORY AUTHORITY, THE ELIGIBILITY OF ECONO TO AN AWARD UNDER THE INVITATION. BY LETTER DATED AUGUST 9, 1968, WE HAVE BEEN ADVISED BY THE ADMINISTRATION AS FOLLOWS: "ON AUGUST 8, 1968, THE ADMINISTRATOR OF THE SMALL BUSINESS ADMINISTRATION APPROVED A DECISION IN THE MATTER OF SIZE APPEAL OF ECONOSERVICE LEASING COMPANY, INC., DUARTE, CALIFORNIA, FINDING THAT THE COMPANY IS NOT A SMALL BUSINESS CONCERN FOR PURPOSES OF AWARD UNDER INVITATION FOR BIDS NO. 68-1, ISSUED BY THE POST OFFICE DEPARTMENT. BEING A LARGE BUSINESS CONCERN, IT IS NOT ELIGIBLE FOR A CERTIFICATE OF COMPETENCY. ACCORDINGLY, NO DETERMINATION OF THE CAPACITY AND CREDIT HAS BEEN MADE.'

IN VIEW THEREOF, AND SINCE IT APPEARS THAT THE AWARD MADE TO DUFFY WAS PROPER IN THE CIRCUMSTANCES, WE WILL TAKE NO FURTHER ACTION WITH RESPECT TO YOUR LETTER OF JUNE 12. A COPY OF THE SIZE APPEALS BOARD DECISION ON THE STATUS OF ECONO IS ENCLOSED.