[Protest of DFSC Solicitation for Natural Gas]

B-240148: Oct 19, 1990

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A firm protested a Defense Logistics Agency (DLA) solicitation for natural gas, contending that: (1) DLA should set aside the solicitation for small disadvantaged businesses (SDB), since it could reasonably expect to obtain offers from at least two responsible SDB; and (2) Walsh-Healey Act provisions requiring award to only manufacturers or regular dealers were not applicable to the solicitation, since utility service procurements were exempt from the act. GAO held that: (1) the solicitation was not for utility services, and thus the Walsh-Healey Act was applicable to the procurement; and (2) DLA reasonably determined that it would not receive offers from at least two SDB that would be eligible for award as manufacturers or regular dealers. Accordingly, the protest was denied.

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