Protest Concerning Set-Asides for Labor Surplus Areas

Two companies contended that total small business set-asides should be set aside for labor surplus area concerns. Procurement regulations permit agencies to establish relative priorities of labor surplus area and small business set-asides, and GAO may not object to the agency's determination of priorities. A protest concerning the reasonableness of prices was not considered since price reasonableness is a matter of judgment to be exercised by the agency.