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B-190580 1 (1978-02-07)

handle is hein.gao/gaobadfre0001 and id is 1 raw text is: t THE COMPTROLLEAt USNERAL CECIUION .j2A4. OF THE UNITED *tTATWE WASHINGTOW. l.C. 20548 Lbgyt FILE: 8-190580 MATTER OF: DATE: February 7, 1978 Pete Smith Co., Inc. OIGEST: Re'uests for riview of procurement funded by Federal grant involving 10 percent minority business enterprise requirement mandated by Rblic Emplozment Act of 1977, which require- ment is subject f :vnflicting U.S. District Court opinions and other pending litigation, will not be considered until litigatton is finally resolved. Pete Smith Yo.,Inc. (Pete Smith) requesks our review of the'award of ccntracts by the cities of Malvern and Hot Springs, Arkanas. The contracts inivclve two EDA - assisted loca t public works pro- jects for which the City of Malvern was the grantee in project number 08-51-20133 and the City of Hot Springs under project number 08-51-20069. Pete Smith contends that the two contact awardnes for the project were 'ineligible for the awards because of their failure to comp.y with section 106(f)(2) of the Public Works Employment Act of 1977, which requires bidders to have 10 percent of the grant in a federally funded project performed by a Minorit' Business E .terprise (HBE). The MBE provision of the 1977 act has been the subject of conflicting United States District Court opinions. See:Associated Can'eral Contractors of California v. Secretary of 'Commerce, U.S. District Court for the Central District of California, Civil Aition No. 77-3738-AAR, October 31, 1977, and Constructors Association of Western Pennsylvania v. Kreps, U.S. District Court for the Western District of Pennsylvania, Civil Action No. 77-1035, October 13, 1977. The California decision has been appealed to the United States Supreme Court. - 1 - p Z I, ________ K, ' I - I *1 V /9 I 0 U -* r i

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