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B-228345.2 1 (1988-04-07)

handle is hein.gao/gaobadnbh0001 and id is 1 raw text is: The Comptroller General of the United States Washington, D.C. 20548 Decision Matterof- Department of the Navy--Request for an Advisory Opinion File: B-228345.2 Date: April 7, 1988 DIGEST There is no legal authority for the government to award a contract to an unincorporated association that has no legal existence independent of its membership and no authority to bind its membership for performance of the contract. DECISION The Military Sealift Command, Department of the Navy, has requested an advisory opinion regarding the propriety of awarding a contract for harbor and docking/undocking pilotage services in New York Harbor to two unincorporated associations. The two organizations, the United New Jersey Sandy Hook Pilots Benevolent Association and the United New York Sandy Hook Pilots Benevolent Association, have member- ships which consist of self-employed individual harbor and river pilots who hold licenses issued by the States of New Jersey and New York, respectively, and/or the federal government. The associations submitted a joint offer in • response to request for proposals No. N62381-87-R-0053, which was the lowest offer received by the Navy on the solicitation. The Navy asks whether the organizations have the requisite capacity to enter into a contract with the United States. We believe they do not. According to the associations, they would enter into the contract on behalf of, and as agent for, the individual pilot members. The Navy states that the organizations have refused to form a joint venture; they have, however, offered to submit affidavits from the presidents of both associations declaring that they have the authority to enter into this contract and to obtain a power of attorney from each of their members. The associations have stated that they would guarantee that a pilot would be available to provide services whenever needed; however, each pilot would be individually responsible for his own contract perfor- mance. If one of the pilots performed unsatisfactorily, he would be taken off the list of eligible pilots, but no penalty would be assessed against the remaining pilots.

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