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B-178701 1 (1975-11-20)

handle is hein.gao/gaobadcsk0001 and id is 1 raw text is: 

                     IF R
                           STHE   COMPTROLLER! GENERAL
DECISION         .-. OF THE              UNITED      STATES
                             WASHINGTON. D. C. 20548




FILE:   B-178701                    DATE:   November 20, 1975

MATTER OF-Tombs & Sons, Inc.--Request   for Reconsideration


DIGEST:

1.    July 15 decision, holdingthat contract was improperly
      awarded, is sustained notwithstanding contention that
  *   case cited, Prestex, Inc. v. United States, is inappli-
      cable, since read as a whole, case enunciates rule of
  *   law that contract awarded must be contract advertised.
      Air Force postaward contract modification to reflect
      higher wage determination issued approximately 3 months
      before award, was tantamount to awarding different con-
      tract than one advertised because Air Force knew it
      would apply new wage rate to contract performance.

2.    Proper way to determine effect of new wage rates is to
      recompete rather than assume new rates would affect
      bidders equally and, therefore, failure to resolicit
      using new wage rates issued after bid opening and before
      award with intention of adjusting contract price after
      award to reflect wage rate changes was improper notwith-
      standing contention that wage rate changes would not affect
      competition.

3.    Option exercised 4 days before decision holding it should
      not be exercised, should be terminated for convenience
      despite termination costs and reprocurement time entailed
      since such action is deemed necessary to maintain the in-
      tegrity of the competitive bid system.

      Tombs & Sons, Inc. (Tombs), has requested that we reconsider
our decision, Dyneteria, Inc., 55 Comp. Gen.    (B-178701, July 15,
1975), 75-2 CPD 36. While the decision discussed several issues,
Tombs questions the basis for our recommendation that the option to
its contract not be exercised.

      The July 15 decision dealt with an invitation for bids (IFB)
for full food services at Lowry Air Force Base, which incorporated
by reference the provisions of the Service Contract Act of 1965
(41 U.S.C. § 351 (1970)), as required by Armed Services Procurement



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