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B-114839 1 (1979-03-20)

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               COMPTROLLER GEtIERAL 017' VWEUNITED rTATES
   its                  W AS,, GTON. .. 1054,, 3


     B-1I148 39


                                            IAR :. 0 91(

                              Pa riot nako &VUUZilot p~bjJ1e~ln
    The Honorable George Hansen    -.to p.0bli..radi-to
    House of Representatives
    Dear Mr. f.ansen;

         This .s_._Ws response to your,,Xetter of February i'15,
     l979gtequestin-that we review the con(]usions reached
     An our T-t tet- of February 6, 1979# concer0ing theFro-
  W-S.-priety of the noncompetttive award of a Ponstructon
      of thr~~~~~tmyjtAor j2LumD afL'~t~p         JA
,Nrcont raot by thIhojrq m2.9A Qnaj(Cor) Department
    of the Amy,--to .e . Jone~s Cons truction CoqMpany (J. Ao
    Jones).Th.tO                        33
         The contract, awarded, on a 1Iloesourco bsis, was .
       for the rf.smsin4t4trjl§                      aL ptnd
    bases in e-Panama Caqnal-,_9ApjCtnal Zone), in', anticipn-p
    tIornE-- i- 0etober I- 1979veffectivo date Qf the Panalrn
    Canal Treaty (Treaty), ratified by'the Senate ofthe
    United Stats on Apri) 18, 198/8, Xou object to thecom.,
    plete absence of qom  L t±ln In the procurement proce-
    dures emp  Tyid the Corps itilight of the existence
    of other firsvs qualified to perform the work.  Our
    initial lettev to you was based upon a written report
    presented to ourOffice by the'Corps. In conhlection
    with your February 15, 1979 request, however, ,we con-
    ducted a field audit of the contract and correspondence,
    files at the 0r    .Mobil eAlabai Offiie(Mobile), v-M$
    which awarded the contract, and interviewed Nobile per-
    sonnel involved in the selection process. Our findings
    follow#

         As early as ovember 17, 1977,, apparently in antic-
    ipation of the -ratification of the Treaty, the Corps'
    Office of Chief of Engineers (OCE) granted authoriza-
    tion to Mobile to proceed 4jith final\design of an PY
    78 (Fiscal Year 1978) project in the programmed amount
    of approximately $3.3 million, for the construction of
    temporary facilities (interim Phase I project) for units

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