[Protest of GSA Contract Award Under Small Business/LSA Set-Aside]

B-212587: Aug 26, 1983

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A firm protested any contract award under a small business, labor surplus area (LSA) set-aside issued by the General Services Administration, alleging that it was unduly restrictive of competition and more costly to the Government. The protester argued that it could furnish a better product at a lower price and should be allowed to compete. Regulations grant agencies broad discretion in determining whether to set aside procurements for small businesses and LSA's. GAO will not question an agency's determination to set aside a procurement if it has a reasonable basis for its belief that a sufficient number of bids will be received to award the contract at a reasonable price. Since the protester did not allege that the procuring agency lacked reason for expecting sufficient competition or reasonable prices, GAO found no basis to question the agency's determination to set aside the procurement. GAO noted that the quality of the protester's product was not an issue. Accordingly, the protest was dismissed.