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B-185305 1 (1976-07-20)

handle is hein.gao/gaobadcwm0001 and id is 1 raw text is: DEECNERICMfI THE COMPTROLLER GENERAL .ECISION OF THE UNITED STATES a WASHINGTON, D.C. 20548 FILE: B-185305 DATE: July 20, 1976 MATTER OF: Colonial Baking Company DIGEST: Determination by contracting officer that low bidder was nonresponsible for lack of integrity because of nolo con- tendere plea in anti-trust case was justified. In making nonresponsibility determination, contracting agency is not required to weigh pvidence upon which anti-trust conviction was based to determine degree of violation. Invitation for bids (IFB) No. DSAl35-76-B-KO35 was issued by the Defense Supply Agency, Defense Personnel Sugport Center, Defense Subsistence Region, New Orleans, Louisiana for bread requirements of Keesler Air Force Base, Mississippi. Two re- sponses were received prior to bid opening. The Colonial Baking Company (Colonial) was found to be low bidder. However, the contracting officer determined that Colonial was nonresponsible for lack of business integrity and awarded the contract to the other bidder. The contracting officer noted that an investigation by the Department of Justice resulted in bills of information being filed against various bakeries and individuals including Colonial and Colonial's president. The bill alleged a combination and conspiracy to fix, raise, and maintain prices in the Baton Rouge Market. On September 26, 1975, Colonial and its president pleaded nolo contendere to the charges of violation of 15 U.S.C. Section 1 (The Sherman Act) and were fined $10,000 and $2,500, respectively. Colonial contends that the circumstances under which it and its President pleaded nolo contendere to the charges did not justify a finding of nonresponsibility. It argues that even though the bills of information filed against Colonial and the other baking companies in Louisiana charged a conspiracy in vio- lation of the Sherman Anti-Trust Act to fix prices, eliminate - 1 -

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