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B-185302 1 (1977-01-26)

handle is hein.gao/gaobadeje0001 and id is 1 raw text is: 4~ cc4 i0 FILE: DATE: Jainry 26, 1977 3-185302 MATTER OF: E Recomndaticn Concerning Defense Supply Agency Contract Nc. DSA100-76-C-1280 DIGEST:,1 Mere GAG recommeided that.agency examine feasibility of terainating improperly awarded contract for convenience of 'vernment, agency's response establishes grounds Ajr position that award should not be disturbed due to urgency of supply situation. Therefore, notwithatanding doubts concerning methodology used by contract- Ing officer in arriving at terminaton for con- venience cost eatimate, considering all cir- cumstancqs of case GAO cannot conclude that recommending termination for convenience would be in beat intereuts of Government. In Society i, Inc. Rest Recderatin, U-185302, August 30, 1976, 55 Comp. Gen. 1412 (1976), 76-2 CPD 202, our Office recommended that the Defense Supply Agency (DSA) examine the current feasbility of terminating for the convenience of the Government contka'ct No. DSA100-76-C-1280, vhich was awarded to Propper Inter- national, Inc. (Propper)., under invitatia for bids (Ifl) No. DSA100- 76-B-0033. 1L an earlier decision we had concluded that Propper was not eligible for an award under the IFB (Propper International, Inc. at al., B-185302, June 23, 1976, 55 Comp. Gen. 1158 (1976), 76-1 CPD 400). DSA'responded to our recommendation by letter to our Office dated September 28, 1976. DSA maintained that it would not be in the best interests of the Government to terminate Propper's contract in light of (1) the costs which would be involved (an estimated $588,782 in relation to a total contract price of $1,317,840), and (2) the continuing urgency of the supply situation in regard to the service caps being furnished under the contract (which would be exacerbated by the delays attendant to making award to a new contractor). The laterested parties were provided with an oportunity to eoient on DSA's position. The bidder which apparently would be in line for an award after a termination, Society Brand, Inc., did not coment. The bidder next in line, Bancroft Cap Corpanr, Inc. (Bancroft), contests DSA's views. -1 - h -U U, A,&ae9. \T14K COMPTROLLER NWNWNAL 0alION . . T U71 UNITED STATUE WAUHIfYSTON, D.C. 0540 SI-.--- 4. Iimm..m. -j

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