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B-185562 1 (1976-04-08)

handle is hein.gao/gaobaddpv0001 and id is 1 raw text is: 



                                o        THE  COMPTROLLER GENERAL
-           DECISION                     OF   THE    UNITED      STATES
                                         WASHINGTON. D.C. 20548




            FILE:        B-185562              DATE:   April 8, 1976

            MATTER OF:         Surveillance Systems


            DIGEST:             .

            1. GAO agrees with contracting officer's position that, in absence
               of Government employee involvement in alleged price disclosure
               to competitor, there is no requirement that allegation be in-
               vestigated by procuring agency.

            2. Protest that successful contractor is not responsible because
               of lack of integrity will not be considered by GAO.

               Surveillance  Systems (Surveillance) has protested the
            December 8, 1975, award of a contract to TRB Industries (TRB), the
            offeror submitting the lowest price under Army request for proposals
            No. DAAA25-76-R-0050. Surveillance alleges that TRB had knowledge
            of Surveillance's offered price prior to the date (October 9, 1975)
            on which proposals were to be submitted under the RFP and that
            TRB's offered product had been improperly qualified by the Depart-
            ment.. Finally, Surveillance notes that litigation is pending
            regarding alleged irregularities committed by a former employee.
            Because of these assertions, the protest requests that TRB's
            contract be canceled and an award made to Surveillance, the offeror
            submitting the second lowest price under the RFP.

                 The Army's contracting officer argues that-it would impose
            an impossible and undue burden on him to police private business
            ethics by investigating an allegation of improper price disclosure.
            Further, the lcontracting officer is of the firm opinion that there
            was no irregularity on the part of the Government since the
            alleged discLosure of price was not made by any Government personnel.

                 There is no evidence, in the contracting officer's view, that
            TRB's units were improperly qualified. He insists that the units
            passed all required tests and therefore were properly qualified
            under the Defense Standardization Program. Further, the contracting


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