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B-196029.3 1 (1980-08-08)

handle is hein.gao/gaobadilw0001 and id is 1 raw text is: MATTER OF: Lamson Division of Diebold, Incorporated DIGEST: 1. Claimant of bid preparation costs must show that arbitrary or capricious Government action precluded claimant from receiving award to which it was entitled. 2. There is no legal basis to pay anticipated profits to unsuccessful bidder. Lamson Division of Diebold, Incorporated (Lamson) requests reimbursement for costs incurred in the pre- paration of its bid plus a percentage of its antici- pated profit. The request for reimbursement relates to a solicitation issued and a contract awarded by the General Services Administration (GSA) to Mosler Safe Company (Mosler) for a material handling system for the Social Security Administration Headquarters. In our decision in Lamson Division of Diebold, Incor- porated, B-196029.2, June 30, 1980, 80-1 CPD 447, we sustained a protest by Lamson against GSA's modifica- tion of the contract on the basis that the modification had the effect of circumventing the competitive pro- curement statutes. However, we did not recommend reme- dial action since the system already had been installed. The claim is denied. Mosler, the low bidder under the invitation for the requirement, had advised the contracting officer shortly after award and before returning an executed copy of the contract and performance and payment bonds that its equipment supplier had sold its product line and declared bankruptcy, and that Mosler therefore was 0LLEA 4P oE O ~ THE COMPTROLLER GENERAL *F-C O *OF THE UNITED STATES / WASHINGOoN, 0. C. 2054 B-196029 3 DATE: Aulust 8 19q8 . g ,

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