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B-190647 1 (1978-02-01)

handle is hein.gao/gaobadfqy0001 and id is 1 raw text is: L .. .EEO THE COMPTROLLER GENERAL WAHMINGTON. D.C. 20549 FIL': 8-190647 DATE: ?ebruary 1, 1978 MATTER OF: Capital-York Construction Corp. at;d J. N. Futia Co., Inc, DIGEST: Request for review of procurement funded by Federal grant involving 10-percent minority business enterprise requirement mandated by Public Works'Employment Ac*t of 1977, which requirement is subject of conflicting U.S. District Court opinions and other pending litigation, will not be considered until litigation is. finally resolved. The -joint venture ofCapital-York Construction Corp. and J. N., Futia Co;, Inc.1r.ti), has .requested our Office's review of the b'dsis'ubmitted in response to'a solicitation by the State University Construction Fund (SUCF), Sew York, fcr a comstruction contract financed by a Federal grant from the<Economic Development Administration, U.S. Depart- ment of Commerce. :Futia contends that the bid submitted by the apparent lowbidder, Le 'Peck Construction Corporation, was nonresponsive be-cause it.failed to agree to use 10 percent if the amount bid plus $67,000 for.minority business enter- primes (MBE) as required by the solicitation. The grant was authorized under the Local Publi6 Works Capital Development and Investmeht Act of 1976, 42 U.S.C. SS 6701 etse., as amended by the Public Works Employment Act of 1917, Public Law 95 28. Under section 6705(f)(2), title 42, United States Code, the graIntee is required to give the Economic Deirelopmeht Administration satisfactory assurance hat at least 10 percent of the amount of the grant will be expendiad for MBE's. Since SUCP had already incurred eligible prelimina'y costs under the grant, it Was necessary to require eacl. bidder to agree to expend more than 10 perdent of the amount bid for MBE supplies and services in order to have at .'east 10 perctnt of the total. grant used for MBE's. Therefore, SUCP devised a formula which required that 10 percent of the amount bid plus '67,000 be usied for MBE participation and included it in parag'aph 20 of section 01700, Federal Special Conditions, of the solicitation. - 1 --

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