Protest Questioning Eligibility for 8(a) Award

The protester alleged that the awardee of a Small Business Administration (SBA) 8(a) award is not owned by socially or economically disadvantaged persons and that the awardee is not eligible for an 8(a) award. The protester can be considered an interested party since it contended that the awardee's application prevented it from competing for the award. The SBA considered factors other than racial identity in determining the disadvantaged status of the awardee; the SBA determination was reasonable and rational. The agency was aware that the SBA must fund any costs in excess of fair market prices, and the agency will charge SBA for the excess costs of the contract. There was no impropriety involved in the agency's advising the SBA of the availability of the procurement.