Evening star., 1928-11-17
u. S. RIGHT UPHELD
/ TO Reject Low BID
McCarI's Ruling Held Impor-
tant in $4,000, 900 Con-
struction Program.

In a decision of far-reaching impor-
tance to the public building program in
this city as we'll as throughout the
Nation, Controller General McCarl to-
day laid down the principle that the
Treasury Department may accept the
lowest responsible bid, rejecting those
bids from contractors failing to qualify
as responsible.
The question of bidding has for years
been interpreted in a long line of de-
cisions by the controller general, but
the conclusions reached by him today
for the Treasury Department were said
by those who have studied them to be
by far the most favorable toward carry
ing forward building program with
satisfaction to both Government and
the highest standards of the contracting
profession itself.
The question at issue was the adver-
tising for bids on the Internal Revenue
Building, the foundations of which now
virtually are complete. Congress has
authorized total of $10,000,O00 for
this building, and the plans are ready
in the Treasury Department, it is un-
derstood, for putting the job on the
market perhaps some time next week.
Responsible Bidder Defined.
Instead of holding the Treasury De-
partment strictly to the theory that the
lowest bid in actual figures must be ac-
cepted, the controller general outlined
in great detail his definitions of a re-
sponsible bidder
In the first place, McCarl said the
Treasury could not exclude any one
from bidding on the job. All bids, ne
said, must be received under the prlncl-
pie of free and open bidding. But the
way the Treasury may go about re-
jecting certain offers which might be
low in figures but irresponsible was
carefully stated.
TT would appear" said McCarl, "that
your department would be justified in
recurring each bidder to make a show
ing in detail as to his business and
technical organization available for the
contract work, as to his ability To
finance so much of the work as under
the tSTIlS VI VIC OOhoA uSc, AC WO~AA "
required to finance, and as to each
building constructed by the bidder dur
ing a specified period.
Necessary Qualifications.
These qualifications appear neces-
sary and there is no prohibition in
section 3709, Revised Statutes, against
the statement of such requirement
in the advertisement for proposals for
the construction of the building. And
your department would appear justified
In rejecting the bid of any bidder not
showing such a business and technical
organization or nucleus thereof avail
able for the contract work, or such
financial ability to finance so much OF
the work as the contractor would be
required to finance, or such building
experience as reasonably to Justify the
conclusion that the requirements OF the
Government in this instance could not
safely be intrusted to such a bidder.
Having stated In the advertisement
for proposals the requirements for a
showing Of the qualifications of the
bidder, your conclusion as to the lack
of qualifications on the part of any low
bidder, when reasonably supported by
facts, showing lack Of business or
technical organization or nucleus there
of, available for the work, lack of finan-
cial ability or integrity and lack of
necessary experience, will not ordinarily
be questioned by this office"
With Congress already having au-
thorized $75 ,000, 900 to be spent on Fed
eral housing in the District of Colum-
bia, Treasury Department officials felt
today that the McCarl decision just out,
would be of great practical assistance
in carrying forward the enormous build
ing program