Request for Reconsideration

A firm requested reconsideration of a previous decision in which GAO upheld the Coast Guard's determination to set aside a procurement exclusively for small businesses on bid opening day based on the Coast Guard's finding that there was a reasonable expectation of sufficient small business competition. The decision relied on prior GAO decisions which allowed the setting aside of procurements for small businesses by amendment well after the solicitation issuance date and close to or even after the proposal receipt date. In that decision, GAO stated that, although the protester had challenged the contracting officer's determination based on alleged coercion, a lack of independent judgment, and the mistaken view that a set-aside was mandatory, the protester had not rebutted the reasonableness of the contracting officer's determination that sufficient small business competition could be expected. Also, while the contracting officer did not initiate the set-aside until after bid opening, the action was taken in good faith and only after the contracting officer was convinced that adequate small business competition existed. Since the protester did not advance any additional facts or legal arguments which showed that the earlier decision was erroneous, GAO declined to reconsider the decision. The firm also asked that GAO authorize reimbursement of bid preparation costs. The recovery of bid preparation costs requires a showing that the agency's actions were arbitrary or capricious. In this case, GAO found that the set-aside decision was reaonable and in good faith. Therefore, the award of bid preparation costs was not appropriate.