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B-183833, SEPTEMBER 30, 1975, 55 COMP.GEN. 295

B-183833: Sep 30, 1975

IT IS CONCLUDED THAT HE HAS SUBSTANTIAL OWNERSHIP IN CORPORATION. CONCLUSION IS REACHED IN VIEW OF SIGNIFICANT HISTORY WHICH HAS DISCOURAGED CONTRACTING BETWEEN GOVERNMENT AND ITS EMPLOYEES. REJECTION OF CORPORATION LOW BID WAS NOT IMPROPER. R1-11-75-44 WAS ISSUED ON MARCH 21. BID OPENING WAS HELD ON APRIL 23. THE LOW BID WAS SUBMITTED BY CAPITAL AERO. SUBSEQUENT TO BID OPENING IT WAS DISCOVERED T...

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Rejection of Bid Because of Stock Ownership by Government Employee

B-183833: Sep 30, 1975

A corporation protested the rejection of its low bid after it was discovered that the president of the corporation was a full-time Government employee. The bid was properly rejected because the employee had substantial ownership in the corporation (39.95 percent of the stock), and contracts between the Government and its employees are discouraged...

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