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B-193899 1 (1979-02-27)

handle is hein.gao/gaobadgyq0001 and id is 1 raw text is: THE COMPTROLLER GENERAL DECISION OF THE UNITED STATES WASHINGTON, 0. C. 20548 FILE: B- 19 3899 DATE: February 27, 1979 MATTER OF: Howard Electric Company DIG EST:-7/ 1. Grantee's refusal to permit award of subcon- tract to particular firm is tantamount to negative determination of responsibility with respect to that firm, which under circumstances is not de facto debarment without due process of law or improper prequalification or other undue restriction on competition. 2. Under Federal law, firm may be found nonre- sponsible even though dispute concerning allegedly improper performance of prior con- tract for similar work has not been resolved. 3. Firms acting as joint venturers are answerable for acts done by their coventurers, or other agents, and may be found nonresponsible because of deficient performance by joint venture in prior procurement. Howard Electric Company (Howard) complains that it was improperfy disqualified from participating as a subcontractor to the Weaver Construction Company (Weaver). Weaver is prime contractor to the Colorado State Department of Highways (Colorado), a grantee under Federal Highway Administration (Development of Competitor) grant 1 70-3 (83). The grant supports work on the Eisenhower Memorial Tunnel. According to Howard, 1) the prime contract requires Colorado's approval of all subcontracts; 2) Weaver intended to subcontract with Howard; 3) Colorado re- fused to approve award of a subcontract to Howard; and 4) the basis for Colorado's action is an unresolved dispute relating to delay on another contract on which the prime contractor, a joint venture consisting of Howard and another firm, was assessed liquidated damages.

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