[Request for Reconsideration]

B-206798.2: May 23, 1983

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Ralph O. White
(202) 512-8278

Kenneth E. Patton
(202) 512-8205


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The General Services Administration (GSA) requested reconsideration of a decision which sustained a protest of a GSA small business set-aside of Federal Supply Service multiple-award contracts. GAO had found that the set-aside was improper because only one small business firm could provide the required models and it recommended that, if future contracts did not attract adequate competition, the set-aside should be canceled. GSA contended that GAO improperly interfered with the contracting officer's discretionary business judgment, since there was no evidence of fraud or bad faith. Although GSA agreed to cancel future set-asides, it argued that the decision could undermine a contracting officer's authority to decide whether adequate competition has been achieved. GAO concurred with the earlier reasoning that to continue offering the contract as a set-aside would not further the small business set-aside objectives. Accordingly, the prior decision was affirmed.