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B-223852 1 (1986-09-09)

handle is hein.gao/gaobadsed0001 and id is 1 raw text is: Comptroller General of the United States Washington, D.C. 20548 B-223852RELEASED B-223852 GG ELEA September 9, 1986 The Honorable Warren B. Rudman Subcommittee on Commerce, Justice, State, the Judiciary, and Related Agencies Committee on Appropriations United States Senate Dear Senator Rudman: This responds to your letter of April 10, 1986, in which you and Representative Neal Smith, Chairman, Subcommittee on Com- merce, Justice, State, the Judiciary, and Related Agencies, House Committee on Appropriations, requested this Office to investigate the Legal Services Corporation's (LSC) use of appropriated funds to purchase 260 micro-computers. A few weeks ago, we briefed certain of your staff members on the results of our investigation. During this briefing, your staff members requested that we provide you with a written legal opinion on whether the correspondence between LSC and PC National Corporation about the procurement of the com- puters constituted a binding contract between the parties. It is our opinion that a legally binding contract did result from the correspondence. Under the provisions of 42 U.S.C. Sv 996d(e), LSC is not con- siaered to be an agency or instrumentality of the Federal Government, and therefore is not subject to the Fed al Acquisition Regulation. Rather, under 42 U.S.C. S 996e(a), LSC, as a District of Columbia Nonprofit Corporation, is authorized to exercise the powers conferred upon a nonprofit corporation by the District of Columbia Nonprofit Corporation Act, which would include entering into legally binding con- tracts with other parties. During September 1985, LSC developed a request for a proposal (RFP) soliciting certain computer suppliers to provide it with a definitive proposal setting forth the price and condi- tions for supplying LSC with approximately 260 micro- computers that met certain LSC specifications. LSC received four proposals which were considered responsive to the RFP, including that of PC National Corporation. The PC National proposal contained detailed specifications of the equipment, delivery data, warranty information and unit price quotes for 260 computers, and was selected by LSC. Written across the

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