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ID-83-27 1 (1983-01-21)

handle is hein.gao/gaobabmvm0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 0548 RELEASED INIENTrIONAL OIVISION B-2 1 448 STR CTJ: 00iutde the B-210448 IW f ? ! ' bas specifiz XJANUAF&Y21, 1983 The Honorab le Benjamin A. Gilman House of Representatives 120639 Dear Mr. Gilman: Subject: U.S. Army Corps of Engineers' Selection of a Prime Construction Contractor in Saudi Arabia (GAO/ID-83-27) In response to your letter of July 6, 1982, we reviewed contractor selection procedures in the award of a U.S. Army Corps of Engineer's contract for construction of military family housing in Saudi Arabia under the Foreign Military Sales Program. Because of complaints you received from an American company about its experiences with Al-Huseine-ADA, a joint Saudi Arabian-Pakistani company which was awarded the contract, you requested information on (1) the procedures followed by the Corps in checking the contractor's integrity and (2) any difficulties other American businesses may have experienced with this contractor. The results of our work are detailed in enclosure I. In summary, we found that the Corps generally followed its proce- dures in awarding the contract to Al-Huseine-ADA, and that the contractor met the preaward survey standards and other prequali- fication criteria. we found no indications that this contractor was subjected to any more or less scrutiny than any other con- tractor. We believe that Corps officials reasonably satisfied themselves in confirming the integrity of the contractor as pre- scribed in the Defense Acquisition Regulations. We also contacted representatives of 10 U.S. firms to discuss their experiences with Al-Huseine-ADA. Overall, these discussions did not suggest impropriety or extraordinary diffi- culty which would deter U.S. businesses from conducting business with this contractor. Although three firms indicated there were some payment delay difficulties encountered with this contrac- tor, their experiences were generally the same as doing business with any other foreign firm. (463691) ,--... . , .I -0 /

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