Protest Concerning the Withdrawal of a Small Business Set-Aside by the Department of Commerce

A small business protested the withdrawal of a small business set-aside provision of a contract by the Department of Commerce. The protester alleged that the agency should not have removed the set-aside restriction and did not comply with the regulatory provisions and guidelines applicable to such withdrawals. The first allegation was an oral protest prior to bid opening and should have been submitted in writing before bid opening. Therefore, the first allegation was untimely. The second basis for protest, the agency's failure to follow applicable regulations was not related to the solicitation defect and was supported by the record. A contracting officer shall initiate a withdrawal of a small business set-aside by giving notice to the Small Business Administration (SBA) representative. Such notice was not given to the SBA representative in this case. The contracting officer should immediately refer the case to the SBA liaison representative so that he may pursue the matter. If a final determination is made that the set-aside should not have been withdrawn, the contract awarded to another firm (a large business) should be terminated for the convenience of the Government and the requirement resolicited as a set-aside.