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B-183825 1 (1976-07-02)

handle is hein.gao/gaobaddbs0001 and id is 1 raw text is: THE COMPTROLLER GENERAL DECISION OF THE.UNITED STATES WASH INGTON. .C. 2054B FILE: B-183825 DATE: July 2, 1976 MATTER OF: Joseph A. Chesanek DIGEST: Complaint against cancellation of solicitation by local housing authority--recipient of Federal funds via annual contributions contract with HUD under 42 U.S.C. § 1401, et seg.--is denied. Contract required local housing authority to comply with State and local law in procuring services. No basis is seen for con- clusion that it failed to comply or that any other terms of contract were violated. Joseph A. Chesanek has requested that we review a procurement action of the College Park, Maryland, Housing Authority (CPHA) under an annual contributions contract between CPRA and the Department of Housing and Urban Development (HUD). HUD enters into annual contributions contracts with local housing authorities under the U.S. Housing Act of 1973, as amended (42 U.S.C. § .1401, et seq. (1970)), to provide financial assistance for low-rent public housing. Under such contracts, HUD may permit a local housing authority to engage the services of an independent public accountant to conduct an audit. In the present case, CPHA solicited bids or proposals (the terms are used interchangeably in the record) from independent public accoun- tants to perform an audit of its books. Three proposals were received. The lowest-priced proposal, submitted by J. K. Lasser & Company, was unsigned and was rejected as nonresponsive. Mr. Chesanek's proposal was second lowest. HUD advised CPHA to reject all proposals, cancel the procurement and resolicit, on the basis that HUD's Housing Manage- ment Circular HM 7476.1, July 26, 1972, paragraph 8, required that CPHA obtain proposals from at least three independent public accoun- tants. HUD interprets this provision as requiring at least three responsive proposals. Mr. Chesanek disagrees with HUD's interpretation. At the outset, we note that the Federal Government is not entering into a contract with any of the accountants. Rather, the procurement is by CPHA, a local housing authority receiving Federal funds under an annual contributions contract with HUD. When the Federal Government - 1

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