B-175467, B-175735, SEP 21, 1972

B-175467, B-175735, SEP 21, 1972

BID PROTEST - DEBARRED BIDDER - CONTROLLING INTEREST IN COMPANY DECISION DENYING THE PROTEST OF GEARCRAFT, INC., AGAINST AWARD OF CONTRACTS TO ANY OTHER FIRM UNDER SEVERAL IFB'S ISSUED BY THE U.S. ARMY WEAPONS COMMAND, ROCK ISLAND, ILL., AND THE FRANKFORD ARSENAL, PHILADELPHIA, PA. SINCE ANITA CASTORINA IS PRESENTLY DEBARRED FROM RECEIVING GOVERNMENT CONTRACTS AND HAS BEEN FOUND BY THE ADMINISTRATOR OF EMPLOYMENT STANDARDS TO HAVE A "CONTROLLING INTEREST" IN GEARCRAFT, GEARCRAFT IS THUS INELIGIBLE UNDER SECTION 3 OF THE WALSH-HEALEY PUBLIC CONTRACTS ACT FOR AWARD OF ANY GOVERNMENT CONTRACTS.

TO GEARCRAFT, INC.:

REFERENCE IS MADE TO YOUR TELEFAX DATED APRIL 19, 1972, AND LETTER DATED APRIL 24, 1972, PROTESTING THE AWARD OF CONTRACTS NOS. DAAF03-72 C-1320, - 1321, -1323, -1327, -1331 AND -1352, AND PROTESTING AGAINST THE AWARD OF CONTRACTS TO ANY OTHER FIRM UNDER INVITATION FOR BIDS NOS. DAAF03-B-0064 AND -1122, ISSUED BY THE U.S. ARMY WEAPONS COMMAND, ROCK ISLAND, ILLINOIS. IN ADDITION, WE REFER TO YOUR TELEFAX DATED MARCH 16, 1972, AND LETTERS DATED MARCH 22 AND JUNE 13, 1972, PROTESTING THE AWARD OF A CONTRACT UNDER INVITATION FOR BIDS NO. DAAA25-72-B-0232, ISSUED BY THE FRANKFORD ARSENAL, PHILADELPHIA, PENNSYLVANIA.

BY A LETTER DATED MAY 12, 1972, HEADQUARTERS, UNITED STATES ARMY MATERIEL COMMAND, FURNISHED OUR OFFICE A COPY OF FINDINGS AND CONCLUSIONS DATED MAY 2, 1972, BY A DEPARTMENT OF LABOR HEARING EXAMINER. THE HEARING EXAMINER'S DECISION HELD THAT ONE ANITA CASTORINA, WHO IS PRESENTLY DEBARRED FROM RECEIVING GOVERNMENT CONTRACTS, ALSO HAS A CONTROLLING INTEREST IN GEARCRAFT, INC., AND THAT GEARCRAFT AND ITS OFFICERS ARE THEREFORE ALSO INELIGIBLE TO BE AWARDED GOVERNMENT CONTRACTS UNDER SECTION 3 OF THE WALSH-HEALEY PUBLIC CONTRACTS ACT. WE HAVE ALSO BEEN ADVISED THAT A PETITION FOR REVIEW OF THE EXAMINER'S DECISION WAS FILED BY GEARCRAFT AND ITS OFFICERS, AND THAT THE GOVERNMENT FILED A RESPONSE THERETO. IN A DECISION DATED AUGUST 15, 1972, THE ADMINISTRATOR OF EMPLOYMENT STANDARDS AFFIRMED THE HEARING EXAMINER'S DECISION, HOLDING THAT "ANITA CASTORINA HAS HAD CONTROL OVER THE OPERATIONS OF GEARCRAFT, INC., FOR ALL PRACTICAL PURPOSES, AT ALL TIMES PERTINENT TO THIS PROCEEDING, THAT SHE STILL HAS SUCH CONTROL, AND THAT SHE HAS A 'CONTROLLING INTEREST' THEREIN WITHIN THE MEANING OF SECTION 3 OF THE ACT." ACCORDINGLY, THE ADMINISTRATOR RULED THAT GEARCRAFT AND ITS OFFICERS ARE INELIGIBLE TO BE AWARDED GOVERNMENT CONTRACTS PURSUANT TO SECTION 3 OF THE WALSH-HEALEY PUBLIC CONTRACTS ACT.

IN LIGHT OF THE FACT THAT GEARCRAFT IS INELIGIBLE TO BE AWARDED GOVERNMENT CONTRACTS, IT APPEARS THAT YOUR PROTESTS ARE WITHOUT MERIT. THE CIRCUMSTANCES, YOUR PROTESTS MUST BE DENIED.