B-227572, JUL 7, 1987, 66 COMP.GEN. 562

B-227572, JUL 7, 1987, 66 COMP.GEN. 562

PROCUREMENT - SOCIO-ECONOMIC POLICIES - SMALL BUSINESSES - CONTRACT AWARDS - SOLE SOURCES - PROPRIETY RECEIPT OF ONLY ONE BID ON A SMALL BUSINESS SET-ASIDE DOES NOT PRECLUDE AWARD SO LONG AS AWARD PRICE IS DETERMINED TO BE REASONABLE.

C.R.H. CATERING COMPANY, INC.:

C.R.H. CATERING COMPANY, INC. PROTESTS THE AWARD OF A CONTRACT BY THE DEPARTMENT OF JUSTICE UNDER SOLICITATION NO. 0234-7. C.R.H STATES THAT IT UNDERSTANDS THAT TWO OR MORE SMALL BUSINESS CONCERNS MUST BID ON A SMALL BUSINESS CONTRACT," AND THAT AWARD WAS MADE TO THE ONLY SMALL BUSINESS FIRM THAT COMPETED. C.R.H., A LARGE BUSINESS, INDICATES THAT IT ALSO COMPETED AND STATES THAT IT OFFERED "THE MOST ADVANTAGEOUS BID."

C.R.H. MISUNDERSTANDS THE LAW. CONTRACTING AGENCIES ARE TO SET ASIDE PROCUREMENTS FOR SMALL BUSINESS WHEN THERE IS AN EXPECTATION OF RECEIVING OFFERS FROM AT LEAST TWO RESPONSIBLE SMALL BUSINESS CONCERNS AND THAT AWARDS WILL BE MADE AT REASONABLE PRICES. FEDERAL ACQUISITION REGULATION, 48 C.F.R. 19.502-2 (1986). THERE IS NO REQUIREMENT, HOWEVER, THAT AT LEAST TWO SMALL BUSINESS BIDS BE RECEIVED AS A PREREQUISITE TO AWARD. ALL THAT IS REQUIRED IS THAT THE CONTRACTING OFFICER DETERMINE THAT THE OFFERED PRICE IS REASONABLE. U.S. ELEVATOR CORP., B-224237, FEB. 4, 1987, 87-1 CPD 110. THERE IS NO ALLEGATION HERE THAT THE AWARDEE'S PRICE WAS UNREASONABLE. THEREFORE, AWARD TO THE ONLY ELIGIBLE OFFEROR IS NOT SUBJECT TO OBJECTION.

C.R.H. PRESENTS NO VALID BASIS FOR PROTEST. ACCORDINGLY, THE PROTEST IS DISMISSED.