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B-232616 1 (1988-12-19)

handle is hein.gao/gaobadnio0001 and id is 1 raw text is: Ile Comptroller General of the United States Wahiagzon, D.C_ 28 Decision Matterof: Funding of Replacement Contracts FIle: B-232616 Date: December 19, 1988 DIGEST Funds originally obligated in one fiscal year, for a contract that is terminated for convenience in response to a court order (or a determination by the General Accounting Office or other competent authority) that the contract award was improper, remain available in a subsequent fiscal year to fund a replacement contract, provided the original contract was awarded in good faith, the agency has a continuing bona fide need for the goods or services involved, and the replacement contract is awarded without undue delay and on the same basis as the original contract. 60 Comp. Gen. 591 (1981) is modified accordingly. DECISION This decision is in response to a request from the Chief, Operations Accounting and Reporting Division, United States Mint (Mint), Department of the Treasury, for our decision on whether funds originally obligated in fiscal year 1988 by the Mint for an asbestos abatement contract are available in a subsequent fiscal year after a federal district court orders the Mint to terminate the award and resolicit the contract. As explained below, since the Mint is compelled to terminate the contract for the convenience of the govern- ment, the funds in question remain available to the Mint in fiscal year 1989 to fund a replacement contract for asbestos removal, provided the Mint still has a bona fide need for such services and the replacement contract is awarded without undue delay and on the same basis as the original contract. Our decision reported at 60 Comp. Gen. 591 (1981) is modified accordingly. BACKGROUND On June 15, 1988, under a negotiated procurement, the Mint awarded a $1.8 million contract to LVI Environmental, Inc. (LVI), to remove asbestos-containing materials from the c4.4C / 137 5? 7

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