Protest by Proposed Subcontractor

B-197906: Aug 4, 1980

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A firm protested the award of a prime contract. The protester was a proposed subcontractor for one of eight unsuccessful offerors on the prime contract, none of which protested to GAO. It alleged that the awardee was not qualified to participate in the subject procurement according to the terms of Federal Procurement Regulations and was not capable of performing in accordance with the contract requirements. It claimed that the award contravened the provisions of an Office of Management and Budget circular. The agency maintained that the mere expectation of receiving a subcontract was too remote an interest to confer interested party status on the firm, particularly when none of the prime offerors complained to GAO. GAO concurred with the agency and stated that the issues raised by the protesting firm pertained to the awardee's entitlement to the prime contract award and not to the firm's qualifications as a subcontractor. As the protesting firm was not an offeror on the prime contract in question, the firm must be deemed too remote from the subject matter to establish direct interest for the purposes of this protest. The protest was dismissed.