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B-163971 1 (1969-12-31)

handle is hein.gao/gaobabkrz0001 and id is 1 raw text is: 



               6 OMTROLLER GENERAL OF THE UNITED STATES
                          WASHINGTON. D.C. 20548


B-163971REE                                  EDvn


                                                           LM089857

Dear Mr. Meeds:

     Reference is made to your letter of August ll, 1969 concerning
the problems experienced by the Loctwall Corporation, Lynnwood,
WashingtonD in attempting to contract with the General Services
Administration (GSA) to supply cleated plywood containers. You asked
that we review the procurement procedures of GSA in obtaining these
containersp particularly those procedures used for calendar year 1969
procurements.

     Our examination included a review of applicable Federal Procure-
ment Regulations, contract files, and various correspondence as well
as discussions with GSA officials, representatives of the Small
Business Administration (SEA), end officials of Loctwall. An objec-
tive of our examination--as suggested by Mrs. Wright of your staff--
was to identify ways of precluding future recurrences of the problems
experienced 1y Loctwall in its dealings with the Government.

     The scope of our examination was limited to work necessary to
comply with your request and therefore did not include an overall
evaluation of GSA)s procurement activities Our work was performed
primarily at the GSA Central Office in Washington, VC.

     On the basis of information obtained during our examination, we
believe that GSA s dealings with Loctwall were in accordance with
Federal Procurement Regulations and that GSA acted within the scope
of its authority in connection with the subject procurements. We
found no basis on which to question the reasonableness of GSAfs
decision not to award a contract for the containers for which Loctwall ,.
was low bidder,

     Loctwall claimed that GSA did not take timely action to award
indefinite-quantity contracts for the procurement of containers for
the contract period ended June 30, 196. On the basis of our examina-
tion, we believe that GSAs delay in issuing the Invitation for Bids
(invitation) until November 25g 1968, was unavoidable. The delay
occurred because (1) the containers were new to the GSA supply system9
(2) an August 1968 invitation had been canceled because the containers
specified were determined by 'the Department of Defense (DOD) to be




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