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B-207389 1 (1982-06-15)

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                           WABHINGTON, 0.3, 20540




   FILEt  B-207389               DATE; June 15, 1982

   MATrER OF;    Department of the Interior--Request for
                 an Advance Decision
   DIGEST;


        GAO finds that a grantee violated a grant
        condition requiring maximum free and open
        competition when the grantee, without
        adequate justification to support a sole-
        source award, added substantial, new, and
        separate work to an existing contract
        instead of conducting a competitive
        procurement.

        The Department of the Interior, National Park
   Service, requests our views on whether it was proper
   for the city of Bristol, Connecticut, to issue a
   change order increasing the value of its contract
   withi the Bristol Construction Company (BCC) by $228,075
   (or 74 percent) for work not contemplated under BC's
   original contract. The original BCC contract and the
   change order. relate to an improvement project in
   Rockwell Park, Bristol, Connecticut. The project
   is substantially funded by a grant administered by
   Interior.

        We find that the city's acrcion was improper and
   violated a grant condition requiring maximum free and
   open competition.

        Initial plans for the relevant phase of the
   Rockwell Park project included a lagoon path uystem,
   pond improvements and a river path system; however,
   since the city estimated that the cost for these
   improvements would be about $1.3 million and the
   city had a budget of only $610,000, the scope of
   work in the invitation for bids (IFB) was restricted
   to the lagoon path system and pond improvements.
   The city was concerned that even the IFBs restricted
   work scope would be over budget so the city requested

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