[Protest of HUD Solicitation for Subterranean Termite Protection]

B-275692: Mar 14, 1997

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A firm protested a Department of Housing and Urban Development (HUD) solicitation for subterranean termite protection of single family homes, contending that: (1) HUD unreasonably imposed maximum liability for termite damage which occurs after spot or partial treatment, since such treatment might not provide full protection; (2) it was not industry practice to provide such a warranty; and (3) the government technical representative (GTR) might not be properly qualified to make the treatment determination. GAO held that: (1) there was no legal requirement that the government entirely eliminate risk from the specifications, and bidders were expected to exercise business judgement in preparing their bids in such cases; (2) the contractor had the right to request that the GTR's recommended treatment be modified if more extensive treatment was needed; and (3) any disputes concerning the contractor's liability could be resolved under the disputes clause included in the contract. Accordingly, the protest was denied.

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