United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao_comptroller_general legislative 2016-06-24 U.S. Government Publishing Office 1998-01-07 monographic deposited born digital 11 p. GA 1.13:B-278215 https://www.govinfo.gov/app/details/GAOREPORTS-B-278215 P0b002ee18fd4eaf3 f:278215 DGPO 2016-06-24 2016-06-24 GAOREPORTS-B-278215 machine generated eng fdlp COMPTROLLERDECISION GAOREPORTS-B-278215 B-278215 Comptroller General Decision

1. Solicitation for the sale of surplus property under a term contract is not transformed into something other than a sale because of the inclusion of a provision requiring that the successful contractor pay the government 80 percent of the net proceeds, if any, it obtains from the property in addition to its bid price.<p/>2. Sale of surplus property is not an unauthorized sale on credit where at the time of the sale there is no credit extended or debt incurred; a provision which requires that the contractor pay the government 80 percent of the net proceeds, if any, the contractor obtains from the property does not render the transaction a credit sale.<p/>3. A solicitation for the sale of surplus property will not result in an illusory contract because of a termination clause, where the clause does not allow the parties to terminate at will, but rather allows the parties to terminate only if certain specified contract performance thresholds are not attained.<p/>4. Neither the financial requirements imposed by a solicitation which provides for the award of a term sale contract, nor the size, scope, or length of the contract contemplated by the solicitation, violates the requirement set forth in the Federal Property and Administrative Services Act of 1949 that solicitations for the disposal of property be "on such terms and conditions as shall permit that full and free competition which is consistent with the value and nature of the property involved," given the apparent reasonableness of the agency's explanation for the challenged provisions and the protesters' failure to substantively respond to the agency's position. https://www.govinfo.gov/content/pkg/GAOREPORTS-B-278215/html/GAOREPORTS-B-278215.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-B-278215/pdf/GAOREPORTS-B-278215.pdf GAO/B-278215 https://www.govinfo.gov/app/details/GAOREPORTS-B-278215 Comptroller General Decision GAO/B-278215; Alamo Aircraft Supply, Inc.; Merchants World Surplus E, B-; Title 10 Section 2306(a) Title 10 Section 2306(d) 10 U.S.C. 2306(a) 10 U.S.C. 2306(d) Title 40 Section 472 Title 40 Section 484 Title 40 Section 484(c) Title 40 Section 484(e)(2)(A) Title 40 Section 488 40 U.S.C. 472 40 U.S.C. 484 40 U.S.C. 484(c) 40 U.S.C. 484(e)(2)(A) 40 U.S.C. 488