B-240873, B-240873.2, Oct 30, 1990, 90-2 CPD 351
Highlights
Small purchase Blanket Purchasing Agreement (BPA) is supplying bakery items from large business bakery is denied as the regulations permit small business holder of such a BPA to supply any domestically produced or manufactured item. Inc. protest that a Blanket Purchase Agreement (BPA) /1/ for bakery items was improperly entered into with Colonial Cake Company by the Department of the Air Force. The protesters contend that Colonial is a large business and that a BPA cannot be used to avoid the requirement that all small purchases be set aside for small business. F41636-90-A0490 for bakery items was established with G H Sales. We are also informed that Colonial does supply items to G H for delivery under the BPA.
B-240873, B-240873.2, Oct 30, 1990, 90-2 CPD 351
PROCUREMENT - Socio-Economic Policies - Small businesses - Suppliers Acceptability DIGEST: Protests that firm with small business, small purchase Blanket Purchasing Agreement (BPA) is supplying bakery items from large business bakery is denied as the regulations permit small business holder of such a BPA to supply any domestically produced or manufactured item.
Attorneys
Lone Star Bakery, Inc.; Sterling Foods, Inc.:
Lone Star Bakery, Inc., and Sterling Foods, Inc. protest that a Blanket Purchase Agreement (BPA) /1/ for bakery items was improperly entered into with Colonial Cake Company by the Department of the Air Force, Lackland Air Force Base, Texas. The protesters contend that Colonial is a large business and that a BPA cannot be used to avoid the requirement that all small purchases be set aside for small business.
We deny the protests.
The record shows that Colonial does not hold a BPA with the Air Force at Lackland but that BPA No. F41636-90-A0490 for bakery items was established with G H Sales, a small business. We are also informed that Colonial does supply items to G H for delivery under the BPA. The protesters contend that G H cannot supply items from a large business under the BPA.
Since the BPA here was in essence a small purchase, small business set- aside there is no requirement that the products furnished must be produced by a small business. Federal Acquisition Regulation (FAR) Sec. 19.501- (f)(2) states that a small nonmanufacturer responding to a small business, small purchase set-aside may furnish any domestically produced or manufactured product. Further, the clause set forth at FAR Sec. 52.219-4 states that a small business concern may provide the product of another domestic manufacturer pursuant to a small purchase. Therefore, the fact that G H is supplying products from a large business bakery is not objectionable.
The protests are denied.
/1/ A BPA is a simplified method of filing anticipated repetitive needs which can be accomplished by small purchases by establishing charge accounts with qualified sources of supply. Federal Acquisition Regulation 13.201. To the extent this issue is timely raised, it will be addressed in a later decision.