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[Request for Reconsideration]

B-206501.2 Jul 30, 1982
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Highlights

A firm requested reconsideration of a decision which dismissed its protest of the Department of Commerce's procuring micrographic services under the Small Business Administration's (SBA) 8(a) program rather than by unrestricted competition. As the basis for its reconsideration, the protester alleged that Commerce was negotiating with another firm which SBA had determined was not a small business. In addition, the protester alleged that SBA utilizes a quota system to determine how many contracts should go to 8(a) firms, and that such quotas violate the civil rights of other small businessmen. To be eligible to participate in 8(a) program procurements, a firm must meet only the small business size standard that applies to its principal business activity and, once accepted into the program, the firm's size status is governed by its principal business activity regardless of the size standard which would be applied for a competitive procurement. SBA advised GAO that the firm in question had met the size standard applicable to its principal business activity. Thus, there was no legal impediment to Commerce's negotiating with it under current SBA regulation. GAO was not aware of any quota system used by SBA to determine the number of contracts to be awarded to 8(a) firms. Under an applicable statute, SBA is given broad discretion in administering the 8(a) program. GAO held that the constitutionality of the alleged quota system or its legality under civil rights statutes was a matter appropriately reserved for judicial resolution. Because the protester did not present any legal or factual basis for revising the previous decision, it was affirmed.

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