Request for Reconsideration

Two firms requested reconsideration of a decision which dismissed their protest of the refusal of the Small Business Administration (SBA) to grant them certificates of competency (COC). The protest was dismissed because the firms had not made a prima facie showing of fraud or willful disregard of the facts as required for GAO to review a SBA determination of competency. In their request for reconsideration, the firms contended that the denial of the COC was based on past performance problems which were caused mainly by an insufficient number of personnel. They contended that they had hired more personnel, instituted new administrative work control methods, and increased the inventories of loaner machines and spare parts. The SBA report stated that the denials were not based on inadequate personnel or supplies but on a lack of adequate management control, quality control, qualified technicians, and the ability to properly communicate with Government customers. GAO held that the protesters had still failed to make a prima facie showing that SBA willfully disregarded pertinent facts in denying the COC. Accordingly, the prior decision was affirmed.