[Protest of SBA Denial of COC Under Army Solicitation]

B-240980: Dec 20, 1990

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A firm protested the Small Business Administration's (SBA) denial of a certificate of competency (COC) under an Army solicitation for aircraft maintenance, contending that SBA: (1) relied on false information that the Army provided in bad faith; and (2) failed to consider vital information concerning its responsibility. GAO held that: (1) SBA erroneously refused to issue COC based on Army misinformation that a complete quality assurance program was required prior to contract award; and (2) the Army did not afford the protester a fair opportunity for SBA to review the matter based on correct information. Accordingly, the protest was sustained, and GAO recommended that the Army: (1) resubmit the matter of the protester's responsibility to SBA for further consideration with the correct information; (2) terminate the awardee's contract if SBA issues COC on behalf of the protester; and (3) reimburse the protester for its protest costs.