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B-212661 1 (1984-04-17)

handle is hein.gao/gaobadlqu0001 and id is 1 raw text is: 
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                  C Y        THE COMPTROLLER UENERAL QU
    OEClSlON               .'OP THE UNITEO STATES
                             WASHINGTON. 0.0. 20548




    FILE:      B-212661           DATE: April 17, 1984

    MATTER OF: Athens General Contractors, Inc.


    DIGEST:

    1.    When competitive bidding is a condition to a
          local housing authority's receipt of federal
          funds, the authority must follow certain
          basic principles of federal procurement law
          and may award the contract only to the low,
          responsible bidder.

     2.   GAO will not disturb a grantee's
          determination of nonresponsibility unless it
          lacks a reasonable basis.

     3.   GAO will examine documents pertaining to a
          bidder's responsibility that were not
          disclosed to the bidder to determine if the
          grantee's determination of nonresponsibility
          was reasonable.

     Athens General Contractors, Inc. (Athens), complains of
the rejection of its bid by Saint Mary's Roland View Towers,
Inc. (Saint Mary's), submitted in response to an invitation
for bids (IFB) for rehabilitation work on a housing project
for elderly persons.

     Based upon our review of the record, we deny the
complaint.

     On August 31, 1982, the United States of America and
Saint Mary's entered into a Financial Assistance Contract
(FAC), pursuant to section 201 of the Housing and Community
Development Amendments of 1978, 12 U.S.C. § 1715Z-la (1982),
the United States Housing Act of 1959, 12 U.S.C. § 1701q
(1982), and the Department of Housing and Urban Development
Act, 42 U.S.C. § 3531 (1976). Under the FAC, Saint Mary's
agrees to operate an elderly housing project and the
government agrees to provide financial assistance for the
project. Section 10 of the FAC provides that when Saint
Mary's obtains contracts, it shall accept the bid which
represents the lowest price taking into consideration the
bidder's reputation for quality of workmanship or materials,
timely performance, [etc.].

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