B-216824, OCT 31, 1984, 84-2 CPD 492
Highlights
PROTEST THAT PROPOSED AWARDEE UNDER SMALL BUSINESS SET-ASIDE SHOULD NOT BE CONSIDERED A SMALL BUSINESS FIRM BECAUSE A LARGE BUSINESS ALLEGEDLY WILL PERFORM MOST OF THE CONTRACT WORK IS DISMISSED SINCE THE SMALL BUSINESS ADMINISTRATION IS EMPOWERED TO MAKE CONCLUSIVE DETERMINATIONS ON MATTERS OF SMALL BUSINESS SIZE STATUS. SUBCONTRACTING WITH A LARGE BUSINESS IN CONNECTION WITH A CONSTRUCTION CONTRACT SET ASIDE FOR SMALL BUSINESSES IS NOT LEGALLY OBJECTIONABLE. THE IFB WAS SET ASIDE FOR SMALL BUSINESS CONCERNS AND THE PROTESTER COMPLAINS THAT ADAMS SHOULD NOT QUALIFY AS A SMALL BUSINESS BECAUSE A LARGE BUSINESS FIRM ALLEGEDLY WILL BE DOING THE MAJORITY OF THE WORK. WE WILL NOT CONSIDER BURLINGTON'S SUGGESTION THAT ADAMS SHOULD NOT BE CONSIDERED A SMALL BUSINESS BECAUSE OF ITS ALLEGED ARRANGEMENT WITH A LARGE BUSINESS FIRM.
B-216824, OCT 31, 1984, 84-2 CPD 492
CONTRACTS - SMALL BUSINESS CONCERNS - AWARDS - SMALL BUSINESS ADMINISTRATION'S AUTHORITY - SIZE DETERMINATION DIGEST: 1. PROTEST THAT PROPOSED AWARDEE UNDER SMALL BUSINESS SET-ASIDE SHOULD NOT BE CONSIDERED A SMALL BUSINESS FIRM BECAUSE A LARGE BUSINESS ALLEGEDLY WILL PERFORM MOST OF THE CONTRACT WORK IS DISMISSED SINCE THE SMALL BUSINESS ADMINISTRATION IS EMPOWERED TO MAKE CONCLUSIVE DETERMINATIONS ON MATTERS OF SMALL BUSINESS SIZE STATUS. CONTRACTS - SMALL BUSINESS CONCERNS - AWARDS - SET-ASIDES - SUBCONTRACTOR, SUPPLIER, ETC. SIZE STATUS 2. SUBCONTRACTING WITH A LARGE BUSINESS IN CONNECTION WITH A CONSTRUCTION CONTRACT SET ASIDE FOR SMALL BUSINESSES IS NOT LEGALLY OBJECTIONABLE.
BURLINGTON CONSTRUCTORS INC.:
BURLINGTON CONSTRUCTORS INC. (BURLINGTON) PROTESTS THE PROPOSED AWARD OF A CONTRACT TO ADAMS CONTRACTING (ADAMS) UNDER INVITATION FOR BIDS (IFB) NO. F30636-84-B0018 ISSUED BY THE DEPARTMENT OF THE AIR FORCE FOR THE REPAIR OF HOT WATER LINES AT THE PLATTSBURGH AIR FORCE BASE. THE IFB WAS SET ASIDE FOR SMALL BUSINESS CONCERNS AND THE PROTESTER COMPLAINS THAT ADAMS SHOULD NOT QUALIFY AS A SMALL BUSINESS BECAUSE A LARGE BUSINESS FIRM ALLEGEDLY WILL BE DOING THE MAJORITY OF THE WORK.
WE DISMISS THE PROTEST.
UNDER 15 U.S.C. SEC. 637(B) (1982), THE SMALL BUSINESS ADMINISTRATION HAS EXCLUSIVE AUTHORITY TO DETERMINE MATTERS OF SMALL BUSINESS SIZE STATUS FOR FEDERAL PROCUREMENT AND SALES PURPOSES. LORDSHIP INDUSTRIES, INC., B-212056, JUNE 20, 1983, 83-2 CPD PARA. 7. THEREFORE, WE WILL NOT CONSIDER BURLINGTON'S SUGGESTION THAT ADAMS SHOULD NOT BE CONSIDERED A SMALL BUSINESS BECAUSE OF ITS ALLEGED ARRANGEMENT WITH A LARGE BUSINESS FIRM. AUTOMATED DATATRON INC., B-205038.2, DEC. 30, 1981, 81-1 CPD PARA. 513. IN ANY EVENT, WE POINT OUT THAT SUBCONTRACTING WITH A LARGE BUSINESS FIRM IN CONNECTION WITH A CONSTRUCTION CONTRACT IS NOT LEGALLY OBJECTIONABLE. SEE ENGINEERING COMPUTER OPTECNOMICS, INC., B-203508, JUNE 22, 1981, 81-1 CPD PARA. 516.