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B-182694 1 (1975-07-30)

handle is hein.gao/gaobadcku0001 and id is 1 raw text is: 0 THE COMPTROLLER GENERAL DECISION - OF THE UNITEO STATES WASHINGTON, D.C. 2054B FILE: B-182694 DATE: July 30,1975 q 7 3 31 MATTER OF: Kidd International Data Entry DIGEST: 1. Potential conflict of interest created by Government employee's ability to direct contract work to her sons was resolved by agency through rejection of the sons' low offer. Although for reasons stated, award will not be disturbed, GAO believes it would have been more con- sistent with the concept of obtaining maximum competition if the agency had first explored the possibility of changing the employee's duties so as to eliminate the potential for conflict. 2. Contracting officer is required by FPR to advise unsuccessful bidders of fact that award was made elsewhere, but the failure to adequately do so is a procedural matter which does not justify disturbing contract award. Kidd International Data Entry (Kidd) has protested the rejection by the Department of State (State) of its offer for providing key- punch and keyverifying services. As of July 1, 1973, State had blanket purchase agreements for keypunch and keyverifying services with Kidd and Data Prep Corpora- tion (Data Prep). On July 23, 1973, State became aware that a Payroll Supervisor in State's Fiscal and Financial Services Division was the mother of two Kidd officers. According to her position description statement, that employee's duties included work * * * on existing and/or proposed electronic data processing systems and procedures applicable to the payroll operation. In that capacity she was responsible for placing orders for keypunch and keyverifying services. Because her responsibilities created a potential conflict of interest State ceased placing orders for Kidd's services under its July 1, 1973 blanket purchase agreement. Throughout April and May of 1974, State negotiated a follow-on blanket purchase agreement for keypunch and keyverifying services with Data Prep. Although Kidd was not provided with a copy of the solicitation it apparently was aware of the procurement action and it submitted price proposals for the new contract on April 2, 1974. - 1

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