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B-190753 1 (1978-02-07)

handle is hein.gao/gaobadfrd0001 and id is 1 raw text is: 




                                                     Robert Little
                                                               FL  2

                           C        THE CCMPTROLLEH GENERAL
              DECISION           }  CF  THE   UNITEC   alATEE
                                    W ASHtINWQTD0N. V).C 2 0 5460



              FILE: B-190753             DATE:  February T, 1978

              MATTER OF:   Associated Construction Company


              DIOEST:

                 Requests for review of procurement funded by
                 Federal grant involving 10 percent minority
                 businress enterprise requirement mandated by
                 Public Works Employman4- Act oI 1977, which
                 requirement is subject of con icting U.S.
                 District Court opinions and o:her pending
                 litigtion, will not be considered until
                 litig4tion is finally resolved.

                 AssociateC Construction Company (Associated)
             requests our review of the award of a contract by the
             Town of Wethersfi.eld, Connecticut involving an EDA-
             assisted local public works project numbsr 01-51-25706.

                 Associated contehds that its bid was illegally
             rejected as not having complied with section 106(f)(2)
             of the Public Works Employment Act of 1977. The Act
             requires bidders to have 10 percent of the grant in a
             federally iunded project performed by a Minority
             Business Enterprise (MBL!.

                 'The M,: provision of the 1977 act has been the
             subject of conflicting United States District Court
             opinions. See;Associated G'beral Contractors of
             California v. Secretary of Commerce, U.S. District
             Court for the Central District of California, Civil
             ActionNo. 77-3738-AAH, October 31, 1977, and
             .Constructors Association of Western Pennbylvania v.
             Kreps, U.S. District Court for the Western District
             of Pennsylvania, Civil Action No. 77-1035, October 13,
             1977. The Califotnia decision has been appealed to
             the United States Supreme Court.





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