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B-190808.3 1 (1981-10-19)

handle is hein.gao/gaobabjij0001 and id is 1 raw text is: w -r UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 OFFICE OF GENERAL COUNSEL B-190R08.3 October 19, 1981 lalable to The Honorable Daniel Patrick Moynihan. United States Senate Dear Senator Moynihan: This is in regard to your letter of September 1, 1981, enclosing a letter from Mr. S. G. Coron, vice president of Balfour, Maclaine International Ltd. Mr. Coron's letter expresses concern that the General Accounting Office has not investigated an alleged misuse of Federal funds under a grant from the Department of Commerce, Economic Development Administration to the Commerce Development Admin- istration, an entity of the Government of Puerto Rico, for a project known as the San Juan Central Market Expansion. In late 1977 Bally Case & Cooler, Inc. (Bally), apparently a subsidiary of Balfour, Maclaine International Ltd., filed a protest with our Office, alleging that a second-tier subcontractor on the Central Market project would not be capable of providing insulated panels that met the contract specifications. In our decision in Bally Case & Cooler, Inc., B-190808, January 16, 1978, 78-1 CPD 34 (copy enclosed), we dismissed Bally's protest because the facts of the case did not fall within one of the.sets of circumstances in which we will review protests of the award of subcontracts. Generally, we do not review such protests because prime contractors are normally independent con- tractors whose methods of subcontracting are not subject to the statutory and regulatory require- ments governing direct procurements of the Federal Government. In July of this year, Bally informed us that the warehouse which incorporated the insulated panels had burned down. Bally alleged that the fire was the result of defective insulated panels

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