Protest of DOL Refusal To Refer Responsibility Determination to SBA
Highlights
Opalack & Company, having been found nonresponsible under a request for proposals issued by the Department of Labor (DOL), protested that it had the right as a small business to apply for a certificate of competency (COC) from the Small Business Administration (SBA), but that DOL refused to refer the matter to SBA. A previous contract entered into by Opalack with DOL had been terminated for default. Although Opalack was the low bidder under this solicitation for a 100 percent small business set-aside, the firm was found nonresponsible and the contract was awarded to another contractor. DOL maintained that it was not required to submit a request to SBA for a COC because Opalack was subject at the time to a debarment proceeding. GAO held that DOL had no legal basis for not referring the question of Opalack's responsibility to SBA, and the protest was sustained. It was recommended that the contracting officer immediately refer the matter to the appropriate SBA officials for possible issuance of a COC. If a COC is issued, and Opalack accepts award for the balance of the contract term, the current contract should be terminated for the convenience of the Government.