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B-171597, SEP 16, 1971

B-171597 Sep 16, 1971
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NASA HAS ADVISED THAT IT WILL AMEND ITS WRITTEN PROCEDURES TO PROVIDE FOR REFERRALS TO SBA IN THOSE SITUATIONS WHERE NASA DETERMINES THAT A SMALL BUSINESS CONCERN HAS FAILED TO MEET THE LINE CERTIFICATION REQUIREMENTS UNDER THE PROPOSED "NASA MICROELECTRONICS RELIABILITY PROGRAM.". THE SMALL BUSINESS CONCERN WILL BE PERMITTED TO BID IF IT OTHERWISE QUALIFIES ITS PRODUCT. KLEPPE: REFERENCE IS MADE TO YOUR LETTER OF JULY 28. NASA HAS ADVISED THAT IT WILL AMEND ITS WRITTEN PROCEDURES TO PROVIDE FOR REFERRALS TO SBA IN THOSE SITUATIONS WHERE NASA DETERMINES THAT A SMALL BUSINESS CONCERN HAS FAILED TO MEET THE LINE CERTIFICATION REQUIREMENTS. THE SMALL BUSINESS CONCERN WILL BE PERMITTED TO BID IF IT OTHERWISE QUALIFIES ITS PRODUCT.

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B-171597, SEP 16, 1971

LETTER REPORT IN A LETTER TO GAO DATED AUGUST 27, 1971, NASA HAS ADVISED THAT IT WILL AMEND ITS WRITTEN PROCEDURES TO PROVIDE FOR REFERRALS TO SBA IN THOSE SITUATIONS WHERE NASA DETERMINES THAT A SMALL BUSINESS CONCERN HAS FAILED TO MEET THE LINE CERTIFICATION REQUIREMENTS UNDER THE PROPOSED "NASA MICROELECTRONICS RELIABILITY PROGRAM." NASA'S LETTER FURTHER INDICATES THAT IN THE SITUATION WHERE NASA DETERMINES THAT A SMALL BUSINESS CONCERN SHOULD NOT RECEIVE LINE CERTIFICATION AND SBA DISAGREES, THE SMALL BUSINESS CONCERN WILL BE PERMITTED TO BID IF IT OTHERWISE QUALIFIES ITS PRODUCT.

TO MR. THOMAS S. KLEPPE:

REFERENCE IS MADE TO YOUR LETTER OF JULY 28, 1971, WHICH EXPRESSED THE VIEW THAT THE PRESENT PROCEDURE FOR ESTABLISHING PRODUCTION LINE CERTIFICATION AS A CONDITION FOR QUALIFYING FOR THE NASA QUALIFIED PRODUCTS LIST FOR MICROCIRCUITS UNDER THE PROPOSED "NASA (NATIONAL AERONAUTICS AND SPACE ADMINISTRATION) MICROELECTRONICS RELIABILITY PROGRAM", AS TENTATIVELY APPROVED IN OUR DECISION, B-171597, FEBRUARY 9, 1971, 50 COMP. GEN. , WOULD INVOLVE AN EROSION OF THE STATUTORY AUTHORITY OF THE SMALL BUSINESS ADMINISTRATION (SBA) TO MAKE FINAL DETERMINATIONS REGARDING THE CAPACITY OF SMALL BUSINESS CONCERNS.

IN A LETTER TO OUR OFFICE DATED AUGUST 27, 1971 (COPY ENCLOSED), NASA HAS ADVISED THAT IT WILL AMEND ITS WRITTEN PROCEDURES TO PROVIDE FOR REFERRALS TO SBA IN THOSE SITUATIONS WHERE NASA DETERMINES THAT A SMALL BUSINESS CONCERN HAS FAILED TO MEET THE LINE CERTIFICATION REQUIREMENTS. THIS APPEARS TO BE CONSISTENT WITH PARAGRAPH 22 OF SBA CERTIFICATE OF COMPETENCY NATIONAL DIRECTIVE 615-1B CITED IN YOUR LETTER OF JULY 28. NASA'S LETTER FURTHER INDICATES THAT IN THE SITUATION WHERE NASA DETERMINES THAT A SMALL BUSINESS CONCERN SHOULD NOT RECEIVE LINE CERTIFICATION AND SBA DISAGREES, THE SMALL BUSINESS CONCERN WILL BE PERMITTED TO BID IF IT OTHERWISE QUALIFIES ITS PRODUCT. IF THE CONTRACTING OFFICER SUBSEQUENTLY DETERMINES THAT A SMALL BUSINESS BIDDER IS NOT A RESPONSIBLE BIDDER TO A NASA PROCUREMENT OF A SPECIFIC MICROCIRCUIT, THE MATTER WILL BE REFERRED TO SBA UNDER THE CERTIFICATE OF COMPETENCY PROCEDURES. NASA'S CONTEMPLATED AMENDMENT OF ITS WRITTEN PROCEDURES IN THE MANNER OUTLINED IN THE AUGUST 27 LETTER APPEARS TO RESOLVE THE MATTER; CONSEQUENTLY, WE DO NOT FIND IT NECESSARY TO TAKE ANY FURTHER ACTION.

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