[Protest of Army Rejection of Bid for Barracks Modernization]
B-253615: Oct 6, 1993
- Full Report:
A firm protested the Army Corps of Engineers' rejection of its bid for barracks modernization, contending that: (1) the Corps improperly determined that it was not a small disadvantaged business (SDB); (2) it was a small disadvantaged business and controlled 51 percent of the joint venture; and (3) the second low bidder did not qualify as a SDB. GAO held that: (1) although the protester controlled at least 51 percent of the joint venture, it did not control the venture's daily operations; (2) the non-SDB firm provided the initial working capital and controlled essential administrative and management functions; (3) the protester's revised management agreement was immaterial, since it was not in effect at bid opening and did not qualify the joint venture as a SDB; and (4) the protester was not sufficiently interested to protest the second low bidder's SDB status, since it would not be in line for award even if its protest were sustained. Accordingly, the protest was denied in part and dismissed in part.