B-207138: Oct 27, 1982

A firm protested a specification in a Navy invitation for bids that required the contractor to indemnify the Government against liability for patent infringement. The firm argued that contract performance would undoubtedly infringe a patent held by another firm and that the requirement resulted in a sole-source award to the patent holder. GAO stated that the agency had a reasonable basis for using...

B-207138: Oct 27, 1982

RECORD SHOWS THAT PROCURING AGENCY HAD A REASONABLE BASIS FOR CONCLUDING THAT USE OF THE INDEMNITY CLAUSE WAS AUTHORIZED BY DAR SEC. 1-903 AND THAT COMPETITION COULD BE ANTICIPATED DESPITE POSSIBLE PATENT INFRINGEMENT. AGENCY ACTION IS UNOBJECTIONABLE. IN SUCH CIRCUMSTANCES AWARD IS REQUIRED TO BE MADE TO THE LOWEST BIDDER MEETING THE SPECIFICATION WITHOUT REGARD TO POSSIBLE PATENT INFRINGEMENT. C...