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B-158766 1 (1986-01-31)

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                      COMPTROLLER GENERAL OF THE UNITED STATES
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B-158766                                   January 31, 1986



The Honorable Thomas P. O'Neill, Jr.

Speaker of the House of Representatives

Dear Mr. Speaker:

      The Competition in Contracting Act of 1984 (CICA), 31
 U.S.C.A. S 3554(e)(2) (West Supp. 1985), provides that the
 Comptroller General shall report to Congress each instance
 in which a federal agency did not fully implement a recom-
 mendation made by our Office in discharging our statutory
 bid protest function during the prior fiscal year. This
 report follows, along with a summary of our fiscal year (FY)
 1985 bid protest activity, consisting of a narrative along
 with enclosed charts.

                        Statutory Report


      In only two instances (5 percent of the CICA protests
 sustained) did agencies not strictly comply with our recom-
 mendations. Both cases were filed and decided shortly after
 the CICA bid protest provisions became effective.

      In Sabreliner Corp., 64 Comp. Gen. 325 (1985), 85-i CPD
 if 280, we considered a procurement for the repair and
 scheduled maintenance of a CT-39E aircraft. We sustained
 the protest because we concluded that award had been based
 on a nonresponsive bid, and we recommended that the Navy
 terminate the contract and make award to the protester. The
 Navy had not stopped work and, although the case was decided
 within 45 calendar days under the express option provision
 of CICA, 31 U.S.C.A. § 3554(a)(2), the Navy concluded that
 termination would not be in the government's best interest
 in view of the termination costs it would incur. (It should
 be noted, however, that Sabreliner subsequently filed a
 lawsuit to compel compliance with our decision and that the
 suit was settled by payment to Sabreliner of $125,000.)

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