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B-197248 1 (1980-01-16)

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GAO
United States General Accounting Office
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Office of


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B- 197248


Waldman & Renda, P.A., Counsel to
Communications Consulting Corporation
1107 Goffle Road - P.O. Box 508
Hawthorne, New Jersey 0750:7

     Attention: David Waldman, Esq.

Dear Mr. Waldman:


     We have received your letter on behalf of Communi-
cations Consulting Corporation informing us that Racal
Communications, Inc., the awardee of General Services
Administration contract7 No. 00544976, refuses to sell
its product to the general public, as you allege is
required by the contract between GSA and Racal. You
request that Racal be required to comply with the con-
tract conditions or, in the alternative, be barred from
receiving GSA contracts.

     We are not aware of any contract provision that
requires a contractor to do business with the general
public, but even if such a requirement does exist, it
is questionable whether the provision was intended to
provide third parties with enforceable rights under the
contract. In any event, whether Racal complies with
contract requirements is a matter of contract adminis-
tration and is the responsibility of GSA rather than
this Office.

     Although we have no information regarding the sub-
ject contract, we surmise that Racal's contract rn.ay
provide that the firm's contract price may be no greater
than the price charged to the general public. This pre-
sumes, of course, that the product is sold commercially.
The purpose of such a requirement, however, is to assure
that the Government will get a competitive price, and
not to benefit any private third party wishing to con-
tract with Racal.

                        Sincerely yours,



                        Milton J. Sboolar
                        General Counsel


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