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B-185505 1 (1976-04-07)

handle is hein.gao/gaobaddpz0001 and id is 1 raw text is: - THE COVIPTROLLER GENERAL DECISIO.N . * OF THE UNITED STATES WASHINGTON, D.C. 20548 FILE: B-185505 DATE: April 7, 1976 MATTER OF: Sola Basic Industries DIGEST: Contract under grant to foreign government financed by AID is not subject to rules applicable to Federal procurements. Con- tract award should comply with criteria applicable under AID- approved solicitation and grant documents. Therefore, where all tenders are nonresponsive and record indicates that prompt award is required AID may approve grantee's selection of the nonresponsive tender which will best serve its needs, provided that award price is determined to be reasonable. On December 10, 1975, Sola Basic Industries (Sola) protested to this Office the proposed award of a contract by the Arab Republic of Egypt to Westinghouse Electric Corporation for electrical equip- ment financed by the Agency for International Development (AID) through AID Grant No. 26312-001. The grant requires AID approval of procurement procedures, tender evaluation, and contract award. By letter of January 21, 1976, AID advised us that the Egyptian Government had determined that Sola's tender was nonresponsive to the delivery and warranty provisions of the Tender Document and that AID had concurred with Egypt's finding. By letter of February 13, 1976, Sola furnished us with a detailed rebuttal. Sola contended that it was substantially compliant with all material pro- visions of the Tender Document. It also contended that if Egypt and AID were to apply a standard of compliance so strict as to find Sola nonresponsive, then by the same standard, Westinghouse, the pro- posed contractor, was nonresponsive. Sola also contended that none of the other four (4) tenderers was responsive; therefore if award is to be denied to Sola no one else should receive the award under the subject solicitation and that further competition procedures are required. By letter of February 12, 1976, AID notified this Office of its intention to approve award to Westinghouse notwithstanding the protest because of the urgent need of the Egyptian Government for the equipment. On February 25, 1976, Sola filed an application for a preliminary injunction in the United States District Court for the -I-

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