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B-208320 1 (1983-06-09)

handle is hein.gao/gaobadldh0001 and id is 1 raw text is: THE COMPTROLLER GENERAL OECI81ON O THU UNITWO STATES WASHINGTON, O.C. 20548 FILE: B-208320 DATE: June 9, 1983 MATTER OF: Foremost Foods, Inc. DIGEST: 1. Grantee procuring activity's determina- tion of its minimum need for fresh milk has not been shown to be clearly unrea- sonable by complainant's speculation that no firm is able to provide the required amount of fresh milk. 2. Grantee's requirement for fresh milk, although a limitation on competition, is not unduly restrictive since it represents the actual needs of the grantee. 3. GAO review of grant complaints deals exclusively with the propriety of the procedures followed in awarding of contracts by grantees, not issues con- cerning contract performance and con- tract administration. Foremost Foods, Inc., requests our review of a con- tract awarded to Jones & Guerrero, Inc. (J&G), under invi- tation for bids (IFB) No. FBE-63-82 issued by the Government of Guam's Department of Education for school milk require- ments. The contract was furded by a grant from the U.S. Department of Agriculture. In essence, Foremost contends that the IFB's requirement for 50 percent fresh milk and 50 percent recombined or reconstituted milk amounted to a sole- source selection of J&G, the only firm claiming that it could provide the required amount of fresh milk. In this regard, Foremost contends that J&G, the incumbent school milk contractor, was required to provide fresh milk for 50 percent of the total milk required under the previous con- tract, but in fact provided only about 15 percent of the more expensive fresh milk. Consequently, Foremost argues, Guam should have known that no firm, including J&G, could meet the IFB'srrequirement for 50 percent fresh milk;

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