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B-185790 1 (1976-07-09)

handle is hein.gao/gaobaddbc0001 and id is 1 raw text is: THE COIPTROLLER GENERAL DECISION OF THE UNITED STATES WASHINGTON, D.C. 20548 FILE: B-185790 DATE: July 9, 1976 MATTER OF: Griffin Construction Company DIGEST: 1. Where grant conditions indicate that State law shall govern procurement by grantee and State law exists on .specific point in question and is followed, GAO cannot say result reached is irrational. However, since here no State law exists as to particular point in question, then consideration of the matter under Federal frame of reference is appropriate. 2. Rational support is found for rejection by grantee and concurrence by grantor agency of low bid submitted by Ethridge & Griffin Const. Co. * * * a corporation, organized and existing under the law of the State of Ga * * * and signed by individual as secretary. Corpo- ration was and is nonexistent. Award to Griffin Construc- tion Company would be an improper substitution. Rationale for objecting to award to entity other than named in bid is that such action could serve to undermine sound competi- tive bidding procedures. 3. Where grantor agency issues regulation requiring grantees to make contract awards under grants through maximum compe- tition to low responsive, responsible bidder, unless grantor takes action necessary to assure grantee compliance, there will be no guarantee that conditions which agency requires to carry out congressional purposes will be met. The subject complaint involves the award of a contract by the city of Monticello, Georgia, for improvements and additions to its municipal water distribution facilities made under a grant from the Economic Development Administration (EDA), Department of Com- merce. The grant was made pursuant to title I of the Public Works and Economic Development Act of 1965, as amended, Public Law 89- 136, 42 U.S.C. H9 3121, 3113-3136 (1970). The grant called for the government to provide 60 percent of the actual cost of the project. - 1 - PUBLISHED DECISION 65 Comp. Gen ........ 4

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