Protest against Removal of Restriction of Prior Small Business Set-Aside

B-189323: Jul 13, 1977

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Protest was made to agency decision to solicit bids without restricting participation to small business concerns as had been done in prior years. GAO has no jurisdiction to question decision by procuring agency and Small Business Administration to remove small business set-aside absent evidence of arbitrary or capricious action. Past procurement history indicated that there was insufficient expectation of competition adequate to ensure reasonable prices. Large business bids on set-aside procurements, while nonresponsive, are "courtesy" offers and may be considered to determine reasonable prices.