Improper Rejection of Bidder as Nonresponsible

The protester, a small business concern, objected to the agency's determination that it was not responsible for reasons other than capacity and credit. The bidder's isolated failure, on a previous contract, to pay employees wages required by law and to pay withholding and social security taxes for its employees was not sufficient reason to support a determination that the bidder was not responsible because of lack of business integrity. The deficiencies reported in the inspection report concerning the bidder's equipment, facilities, and personnel relate to the bidder's capacity and, thus, cannot be used to support a determination of nonresponsibility based on reasons other than lack of capacity and credit.