Construction Contracting

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					                                                                 Construction Contracting

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Description: Also in response to the prequalification, AICI-SP indicated that it was not part of a joint venture.27 The GAO sustained Caddell's protest as the DOS decision that AICI-SP qualified as a U.S. Person lacked a rational basis.28 The GAO recommended that the DOS reconsider its determination, better document its decision, and if the DOS should determine that additional information is needed, ensure that such information is sought in accordance with procedural requirements.29 Following the GAO decision, the DOS requested additional information from AICI-SP to verify its eligibility for the contract award.30 AICI-SP then indicated that it was a de facto joint venturer with American International Contractors, Inc. (AICI), and the DOS then affirmed its earlier decision to award the contract to AICI-SP.31 Caddell again protested to the GAO claiming that AICI-SP still did not qualify as a U.S. Person.32 The GAO dispensed with Caddell's arguments that AICI-SP should not be allowed to use AICI's incorporation status and performance history to meet the Security Act requirements.33 The GAO then analyzed a final statutory provision in the Security Act-the requirement that to be a U.S. Person a firm must have "achieved total business volume equal to or greater than the value of the project being bid in 3 years of the 5-year period" preceding the solicitation.34 The exact meaning of "total business volume . . . in 3 years of the 5-year period" became the key issue in this GAO opinion and the later COFC case.35 The DOS implemented this language by cumulating the business volume from any 3 years in the prior 5-year period.36 If this sum equaled or exceeded the value of the project under bid, the statutory requirement was met.37 Caddell argued that the DOS used an erroneous interpretation, and that each of 3 years in the 5-year period had to equal or exceed the value of the current project.38 The GAO held that Caddell's interpretation was correct, and thus that AICI-SP was not a "U.S. P
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