B-219113, JUL 31, 1985, OFFICE OF GENERAL COUNSEL

B-219113, JUL 31, 1985, OFFICE OF GENERAL COUNSEL

FEDERAL ACQUISITION REGULATION - PROPOSED REVISION DIGEST: GAO SUGGESTS THAT PROPOSED FEDERAL ACQUISITION REGULATIONS SEC. 3.705(C)(4) REQUIRE THAT AN AGENCY'S WRITTEN DECISION TO DECLARE VOID AND RESCIND A CONTRACT WITH RESPECT TO WHICH THERE HAS BEEN A FINAL CONVICTION FOR A VIOLATION OF CHAPTER 11 OF TITLE 18 OF THE U.S.C. CONTAIN A SUMMARY OF THE FACTS UPON WHICH THE DECISION IS BASED.

MR. ROGER M. SCHWARTZ: DIRECTOR, FAR SECRETARIAT GENERAL SERVICES ADMINISTRATION WASHINGTON, D.C. 20405

WE REFER TO YOUR LETTER OF JUNE 10, 1985, REQUESTING OUR COMMENTS ON A PROPOSAL TO ADD TO THE FEDERAL ACQUISITION REGULATION (FAR) A NEW SUBPART 3.7 COVERING THE VOIDING AND RESCINDING OF CONTRACTS WITH RESPECT TO WHICH THERE HAS BEEN A FINAL CORRECTION FOR BIDDING, CONFLICT OF INTEREST, OR OTHER VIOLATION OF CHAPTER 11 OF TITLE 18 OF THE U.S.C. THIS IS FAR CASE NO. 85-27.

PROPOSED FAR SEC. 3.705(C)(4) PROVIDES THAT IF AN AGENCY HEAD OR DESIGNEE DECIDES TO DECLARE VOID AND RESCIND A CONTRACT, THE OFFICIAL IS TO ISSUE A WRITTEN DECISION. THE SECTION SPECIFIES WHAT THE DECISION IS TO CONTAIN. WE BELIEVE THAT IN ADDITION TO WHAT IS REQUIRED BY PROPOSED SECTION 3.705(C)(4), THE WRITTEN DECISION ALSO SHOULD CONTAIN A SUMMARY OF THE FACTS UPON WHICH THE DECISION IS BASED. THIS REQUIREMENT WOULD ENSURE THAT SUCH DECISIONS ARE BASED ON ALL THE INFORMATION AVAILABLE TO THE AGENCY HEAD, INCLUDING THAT SUBMITTED BY THE CONTRACTOR AS SPECIFIED IN SECTION 3.705(E).

WE HAVE NO OTHER COMMENTS ON THE PROPOSAL.