[Protest of Rejection of Bid Under Navy Small Business Set-Aside]

A firm protested the rejection of its bid under a solicitation issued by the Navy as a small business set-aside. The Small Business Administration (SBA) Size Appeals Board determined that the firm did not qualify as a small business concern and, therefore, was not eligible for award. The protester argued that the Board's decision did not apply to this procurement because the contracting officer failed to file a timely appeal. GAO would not question the Size Appeals Board's determination regarding the timeliness of the appeal because the matter is within the jurisdiction of the agency. The firm also complained that, while it was petitioning for a redetermination of its size status, it was not notified that the award was made to the second low bidder. Defense Acquisition Regulations provide that, where a size status appeal is filed prior to award, procurement action is suspended until the Size Appeals Board has made its determination or for a 30-day period from the date on which the initial protest was filed with the SBA Regional Office. GAO concluded that award was proper since the contracting officer had referred the size status matter to the Regional Office several months earlier. GAO found that the alleged failure to provide notice of award was a procedural irregularity and did not affect the award's validity. Accordingly, the protest was dismissed.