National World War II Memorial: Construction Contractor Selection
GAO-02-247R: Nov 30, 2001
- Full Report:
The General Services Administration (GSA) has awarded a $56-million contract to build the World War II memorial in Washington, D.C. One of the firms awarded the contract--Tompkins--is a subsidiary of Philipp Holzmann AG, a German-based company that pled guilty and was fined $50 million for bid rigging on U.S. Agency for International Development (USAID) construction projects in Egypt. When she awarded the World War II memorial contract to the Tompkins/Grunley-Walsh joint venture, the GSA contracting officer was aware of Holzmann's antitrust conviction and took it into account. The GSA contracting officer followed applicable procedures in determining that the awardee was a responsible prospective contractor. The GSA contracting officer documented in the contract file her consideration that (1) the joint venture met the Federal Acquisition Regulation (FAR) requirements for a responsible prospective contractor; (2) neither Tompkins' nor Tompkins' parent firm had been debarred, suspended, or proposed for disbarment from federal contracts following Holzmann's antitrust conviction; and (3) Holzmann did not exercise management control over Tompkins. In considering Holzmann's antitrust conviction in her responsibility determination, the GSA contracting officer said that she obtained information she believed to be sufficient to determine that the FAR responsibility standards were met. She also took into account USAID's May 2001 written statement that the firm was a responsible contractor and could continue to do business with USAID.