[Protest of Navy Decision to Set Aside Procurement for Small Businesses]

B-234161: May 12, 1989

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A firm protested a Navy small business set-aside for management support services, contending that the Navy: (1) failed to meet its commitment to conduct a competitive and unrestricted procurement, as it allegedly agreed to do in a settlement agreement with the protester; and (2) intentionally precluded it from competing in the contract. GAO held that the: (1) Navy properly set aside the procurement in accordance with the regulations for competitive procurements; (2) alleged agreement would have resulted in an improper sole-source award; and (3) protester failed to show that the Navy acted in bad faith. Accordingly, the protest was denied.