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B-193630 1 (1979-03-13)

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COMFTROLLER GENERAL OF THE U4IT-D 5-TATEU
         WAS!ItI3TOII, D.C. 20543


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11- 19 36 30


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                                            MAR 1 31979



'Pihe lonorablo Dave Durenberger
United States Senate


Dear Senator I)urenbergors


     You have
correspondence
tion, which we
once B-193630,
protest withou


forwardeo for our consideration ci
relevant to t', protest by onan
decided on Je4ijuary 11, 1979, our
  In that decision, we dismissed
t consideration on the merits.


ortain
Corpora-
refer-
onan' a


           The correspondence which you forwarded hore ex-
      presses concern over ouy rfusal to review agency
      determinations op responsibility.  It conjectures that
    ('it is eanier for an agency to make affirmative determi-
    nations of responsibility, t ward on thc basis of low
    price and then bail out contractors, than It is for an
      agency to make an initial determination of nonresponsi-
      bility.j We disagree.

          With few exceptions, we no longer review protests
   ,.involving a procuring agency's dekennination of re-
     sponsibility because it is largely a discretlonary
     business Judgment. A procuring agency must suffer any
(    delays and d.ficulties stemming from a contractor's
     nonresponsibiiity, and there is no real purpose i.n its
     awarding contracts without some basis for concluding
     that a firm is able to perform.   In our opinion) bail
     out creates more difficulties and delays than alQ ini-
     tial nonresponsibility determination. Additionally,
     the courts have held that a party alleging an agency's
     abuse of discretion through arbitrary determinations
     munt meot a high standard of proof by showing that
     the alleged arbitrary action did in fact exist*Q Keco
     Industries v. United States, 428 F.2d 1233, 1240 (Ct.


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