[Protest of Award to Any Other Bidder Under VA Small Business Set-Aside Solicitation]

A firm protested any award of a Veterans Administration small business contract, arguing that: (1) the two bidders that submitted lower cost proposals may have engaged in noncompetitive, collusive procurement practices; (2) the low bidder could not perform the contract at the price it bid; (3) the low bidder lacked the required state operating authority; and (4) the second low bidder was not a small business. GAO held that: (1) the protester failed to provide evidence showing collusive behavior; (2) merely because the low bidder submitted a below-cost bid was not a reason to challenge its ability to perform the contract; (3) compliance with state operating requirements is a matter of responsibility which will not be considered absent certain conditions; and (4) since the second low bidder was not in line for award, contending that it was not a small business was academic. Accordingly, the protest was dismissed in part and denied in part.