B-278215,B-278215.2: Jan 7, 1998

Two firms protested a Defense Reutilization Marketing Service (DRMS) solicitation for the sale of surplus property, contending that the: (1) solicitation was flawed; (2) solicitation was actually for property disposal services; (3) contract would result in the unauthorized sale of surplus property on credit; (4) proposed contract may be illusory because neither party would be legally bound; and (5...

B-278215,B-278215.2: Jan 7, 1998

DIGEST Solicitation for the sale of surplus property under a term contract is not transformed into something other than a sale because of the inclusion of a provision requiring that the successful contractor pay the government 80 percent of the net proceeds. Sale of surplus property is not an unauthorized sale on credit where at the time of the sale there is no credit extended or debt incurred. A...