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Volume 4 - Number 03 | January 16, 2006

EDITOR'S NOTES
As two recent mining tragedies in West Virginia take center stage on the nightly news, we look at a mining issue that has a chance of a happy ending. In this comptroller general matter, a contractor tries to use its parent company’s experience to fulfill a contract bidding prerequisite on a mine stabilization and waste project. The tactic may work, but only if the parent company signs on to ensure the project’s success.
The rest of this week’s cases also come from non-traditional court entities. Another comptroller general matter delves into the legalities and nuances of sole-source awards. The Army Board of Contract Appeals denies a contractor’s petition to wave compensability for a government project that finished early. And, in a deviation from our usual practice of just covering U.S.-based cases, we look at a South African case that released an engineering firm from negligence on an aquarium project.


PARENT COMPANY’S EXPERIENCE DOESN’T SATISFY RESPONSIBILITY CRITERION FOR BRANCH’S BID
A bid invitation’s responsibility criterion, such as previous experience, must be met by the bidding party, not its parent company, the comptroller general rules.

“GOOD FAITH” DEFENSE NOT GOOD ENOUGH TO UPHOLD AGENCY’S ACTIONS
“Good faith” won’t convince the comptroller general to automatically allow a sole-source award. The government agency must exercise reasonableness before bestowing a sole-source award on a contractor.

ORIGINAL OPINION STANDS IN DAM REHABILITATION CASE
The government’s arguments hold water in a dam rehabilitation case in which the contractor tries to avoid reimbursing the government for 84 days worth of credits and savings for relaxed work.

SOUTH AFRICAN COURT DISMISSES $2.5M NEGLIGENCE SUIT AGAINST ENGINEERS
Engineers in a Cape Town aquarium project escape a $2.5 million negligence suit on a contract technicality that released it from wrongful conduct.