Protest by Small Business Firms Against Nonresponsibility Determination

Two small business firms protested the rejection of their bids on the basis that the contracting officer's determination of lack of capacity to perform the magnitude of services required and provide the security protection called for was erroneous. One of the firms contended that the question of its responsibility should have been referred to the Small Business Administration (SBA). The protest was sustained because the determination of nonresponsibility for reasons related to capacity required a referral to SBA. If SBA issues a Certificate of Competency to the rejected low bidder or second low bidder, the award to the third low bidder should be terminated.