[Decision Concerning Labor Request for Opinion on Issues Related to Contract for Litigation Support Services]

The Department of Labor requested an opinion on certain issues regarding a firm's Small Business Administration (SBA) section 8(a) contract for litigation support services in connection with the Employee Retirement Income Security Act of 1974 (ERISA). GAO held that Labor: (1) could not extend the contract, since the subcontractor lost its eligibility to participate in the SBA program; (2) could separate the services on a yearly basis, since the contract was essentially for clerical services only and did not require a final report or product; and (3) could not use appropriated funds to extend the contract beyond any fiscal year, since the services were severable on a yearly basis. Accordingly, Labor should adjust its appropriation accounts to the extent possible and, if appropriate, report a deficiency violation.