B-180196(2), JUN 4, 1974

B-180196(2): Jun 4, 1974

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KLEPPE: ENCLOSED IS A COPY OF OUR DECISION OF TODAY IN THE MATTER OF ATKINSON DREDGING COMPANY. IS VOID AS AN UNDUE RESTRICTION ON COMPETITION. WE ARE BRINGING OUR CONCLUSION TO THE ATTENTION OF THE SECRETARY OF DEFENSE FOR CORRECTIVE ACTION. WE RECOGNIZE THAT THE INTENDED PURPOSE OF THE PROVISION TO PREVENT WHOLESALE BROKERING TO LARGE BUSINESSES OF SMALL BUSINESS SET-ASIDES FOR DREDGING IS A LEGITIMATE CONCERN OF SBA.

B-180196(2), JUN 4, 1974

PRECIS-UNAVAILABLE

TO THOMAS S. KLEPPE:

ENCLOSED IS A COPY OF OUR DECISION OF TODAY IN THE MATTER OF ATKINSON DREDGING COMPANY, WHEREIN WE CONCLUDE THAT ARMED SERVICES PROCUREMENT REGULATION 1-701.1(A)(2A. IMPOSES A SIZE STANDARD DIFFERENT THAN THAT OF THE SMALL BUSINESS ADMINISTRATION (SBA) FOR THE DREDGING INDUSTRY AND, AS A CONSEQUENCE, IS VOID AS AN UNDUE RESTRICTION ON COMPETITION.

BY SEPARATE LETTER OF TODAY, WE ARE BRINGING OUR CONCLUSION TO THE ATTENTION OF THE SECRETARY OF DEFENSE FOR CORRECTIVE ACTION.

WE RECOGNIZE THAT THE INTENDED PURPOSE OF THE PROVISION TO PREVENT WHOLESALE BROKERING TO LARGE BUSINESSES OF SMALL BUSINESS SET-ASIDES FOR DREDGING IS A LEGITIMATE CONCERN OF SBA. HOWEVER, WE BELIEVE THAT SIZE MATTERS MAY ONLY BE REGULATED BY SBA. THEREFORE, WE RECOMMEND THAT YOU CONSIDER RECTIFICATION OF THE SITUATION BY EXERCISE OF YOUR REGULATORY POWERS.

PLEASE ADVISE US OF WHATEVER ACTION YOU MAY TAKE.