B-241416, Oct 22, 1990, 90-2 CPD ***

B-241416: Oct 22, 1990

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PROCUREMENT - Socio- Economic Policies - Small businesses - Disadvantaged business set-asides - Preferences - Eligibility DIGEST: Small disadvantaged business (SDB) dealer that proposed to supply end items manufactured by a large business is not entitled to solicitation's SDB evaluation preference. Basic contends that it is a small disadvantaged business (SDB) and that it was improperly denied a 10 percent evaluation preference established for such firms under the solicitation. If there are no SDB manufacturers. Basic proposed to supply end items that were manufactured by Inco Alloys. The protest is dismissed.

B-241416, Oct 22, 1990, 90-2 CPD ***

PROCUREMENT - Socio- Economic Policies - Small businesses - Disadvantaged business set-asides - Preferences - Eligibility DIGEST: Small disadvantaged business (SDB) dealer that proposed to supply end items manufactured by a large business is not entitled to solicitation's SDB evaluation preference.

Attorneys

Basic Supply Company, Inc.:

Basic Supply Company, Inc. protests the Navy's award of a contract to Inco Alloys, a large business concern, under solicitation No. N00104 90-R- FS07. Basic contends that it is a small disadvantaged business (SDB) and that it was improperly denied a 10 percent evaluation preference established for such firms under the solicitation. We dismiss the protest, without obtaining a report from the agency, pursuant to our Bid Protest Regulations, 4 C.F.R. Sec. 21.3(m) (1990).

The solicitation incorporated Department of Defense Federal Acquisition Regulation Supplement (DFARS) clause, "Notice of Evaluation Preference for Small Disadvantaged Business (SDB) concerns (Unrestricted)," DFARS Sec. 252.219-7007 (DAC 88-11). This clause provides that in supply contracts, SDB concerns competing as regular dealers may get the benefit of an evaluation preference only if they furnish the product of a SDB manufacturer, or, if there are no SDB manufacturers, the product of a small business manufacturer. Id. Here, Basic proposed to supply end items that were manufactured by Inco Alloys, the large business concern that received the contract award. Accordingly, the agency properly did not apply the SDB preference.

The protest is dismissed.