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B-294142 1 (2004-08-20)

handle is hein.gao/gaocrptapnq0001 and id is 1 raw text is: G A 0 Comptroller General SIntegrity Reliability of the United States ~ccountabthty Inert Rea iy United States Government Accountability Office DOCUMENT FOR PUBLIC RELEASE Washington, DC 20548 The decision issued on the date below was subject to a GAO Protective Order. This redacted version has been approved for public release. Decision Matter of: Daisung Company File: B-294142 Date: August 20, 2004 Robert K. Tompkins, Esq. and Michael J. Nardotti, Jr., Esq., Patton Boggs, and Byoung Kook Min, Esq., First Law Offices Of Korea, for the protester. Maj. Gregg A. Engler, Department of the Army, for the agency. Jacqueline Maeder, Esq., and John M. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Contracting officer's determination that protester was not a responsible prospective contractor was reasonable where the determination was based on audit and criminal investigation that resulted in specific findings of improper conduct by protester under recent contract for same requirement. DECISION Daisung Company protests the determination that it was not a responsible prospective contractor due to an unsatisfactory record of integrity and inadequate operational controls, under request for proposals (RFP) No. DABPO1-03-R-0061, issued by the Department of the Army, Army Contracting Command, Korea, for inspection, cleaning and renovation of government-owned mattresses and box springs. The Army determined that Daisung was nonresponsible, and rejected its offer, based on Army Audit Agency (AAA) and Army Criminal Investigation Division (CID) findings. We deny the protest. In February 2003, the AAA in Korea initiated a performance audit on Daisung under its contract for mattress renovation services. During an April 22 unscheduled visit to the protester's mattress repair facility, the auditors observed that Daisung was not fulfilling its renovation responsibilities. Agency Report (AR), Tab 5, Final CID Report, exh. 12, at 1, exh. 14, at 1; AR, Factual Summary, at 2-5. Specifically, while the contract required Daisung to renovate each mattress by inspecting the inside of the mattress, and, if necessary, removing and replacing the old felt material with new material, the auditors observed Daisung's workers simply replacing the old mattress

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