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B-194235 1 (1979-04-09)

handle is hein.gao/gaobabjnf0001 and id is 1 raw text is: GAO United States General Accounting Office Office of Washington, DC 20548 General Counsel In Reply Refer to: B- 1942 35 Aerofab &7 //0/? re5tAorfi A pi/,17 ArfbCompa'ny, Inc. pi ,17 2355 Goodrich Street Ferndale, Michigan 48220 Attention: Arthur S. Watkins Gentlemen: We have received your letter of February 22, 1979, which was sent to the General Accounting Office (GAO) Regional Office in Detroit. Your letter indicates that you submitted the low bid in response to invitation for bids (IFB) DAAE07-79-B-A023, but that the Army determined your firm to be nonresponsible because of delivery delinquencies on prior Government contracts. You complain that this is not an isolated instance and that Government procurement officials, in making these nonresponsibility determinations, are failing to con- sider that your delinquency in connection with one itera has no affect on your ability to make timely deliveries of other items. You ask GAO to. investigate this matter. In light of your allegations which suggest that the Government, by rejecting your low bids, is incurring unnecessary procurement costs, our audit staff is re- taining your letter for use in planning future audit reviews. However, we point out that it appears you are failing to take advantage of the procedures established by law and regulation to protect small businesses from unreason- able nonresponsibility determinations. Those procedures OD0Q require referral to the Small Business Administration (SBA) of all contracti -officer de-terr-n-ia tin s of - IA nonresponsibility if a small business is involved. The SBA then provides the small business with an opportunity to file for a Certificate of Competency (COC), certifying

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