[Protest of Bid Rejection by DLA]

B-216304: Sep 18, 1984

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A firm protested the rejection of its bid by the Defense Logistics Agency under a solicitation which was a small business set-aside. The company's bid was rejected because the protester had stated in its proposal that a subcontractor outside the United States would be performing some of the work while most of the work would be performed by itself in New York. It also indicated that not all of the supplies it furnished would be the products of a small business concern. GAO held that a bid on a small business set-aside must establish the bidder's legal obligation to furnish items manufactured by a small business. GAO has held, therefore, that the listing of small business firms in a "place of performance" clause in a proposal does not satisfy that requirement, but merely creates an ambiguity which would require the rejection of the bid. Accordingly, GAO concluded that the protester's bid was properly rejected, and the protest was denied.