Propriety of Contracting Agency's Rejection of Bid

A firm protested the rejection of its low bid by the Forest Service for tree thinning and piling. The Forest Service rejected the bid because it was signed by a person who had been placed on the Comptroller General's debarred bidders list. According to the Service Contract Act, no contract may be awarded to a firm in which debarred persons have a substantial interest. The Forest Service determined that the debarred individual had a substantial interest in the protesting firm, since he had signed the bid and was identified as the firm's Operations Manager. The firm protested that the individual was merely an employee. The question was not for consideration by GAO, however, and was dismissed. The Act must be enforced by the Federal agency head and the Secretary of Labor, and the Department of Labor is empowered to hold hearings in order to review the action by the Forest Service.