B-174911, MAR 8, 1973

B-174911: Mar 8, 1973

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THERE IS NO BASIS TO OBJECT TO THE VALIDITY OF THIS AWARD. WE ADVISED THAT WE WERE CLOSING OUR FILE ON THE PROTEST WITHOUT SUBSTANTIVE ACTION SINCE THE MATERIAL ISSUES INVOLVED IN THE PROTEST WERE ALSO BEING LITIGATED IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF WASHINGTON (PACIFIC COAST UTILITIES SERVICE. REQUESTING RECONSIDERATION OF OUR DECISION TO CLOSE OUR FILE ON THE PROTEST WAS DENIED BY OUR LETTER DATED APRIL 6.

B-174911, MAR 8, 1973

BID PROTEST - SECTION 8(A) PROGRAM DENIAL OF PROTEST ON BEHALF OF PACIFIC COAST UTILITIES, INC., AGAINST THE AWARD OF A JANITORIAL SERVICES CONTRACT AT THE PUGET SOUND NAVAL SHIPYARD, BREMERTON, WASH., TO THE SMALL BUSINESS ADMINISTRATION UNDER AUTHORITY OF SECTION 8(A) OF THE SMALL BUSINESS ACT. SINCE THE COURT OF APPEALS FOR THE FIFTH CIRCUIT HAS, IN THE CASE OF RAY BAILLIE TRASH HAULING, INC. V. KLEPPE, NO. 72-1163, DECLARED THE SECTION 8(A) PROGRAM VALID AND CONSTITUTIONAL AND ABSENT ANY DIFFERENT RESULT OUTSTANDING IN ANY OTHER CIRCUIT, THERE IS NO BASIS TO OBJECT TO THE VALIDITY OF THIS AWARD.

TO GRAY, JEPPSON & GORHAM:

WE REFER AGAIN TO A LETTER DATED JANUARY 5, 1972, WITH ENCLOSURES, FROM YOUR CLIENT, PACIFIC COAST UTILITIES, INCORPORATED (PACIFIC), PROTESTING AGAINST THE AWARD OF A JANITORIAL SERVICES CONTRACT NO. N00406-71-C-0414, AT THE PUGET SOUND NAVAL SHIPYARD, BREMERTON, WASHINGTON, TO THE SMALL BUSINESS ADMINISTRATION UNDER AUTHORITY OF SECTION 8(A) OF THE SMALL BUSINESS ACT.

BY LETTER DATED FEBRUARY 14, 1972, TO PACIFIC, WE ADVISED THAT WE WERE CLOSING OUR FILE ON THE PROTEST WITHOUT SUBSTANTIVE ACTION SINCE THE MATERIAL ISSUES INVOLVED IN THE PROTEST WERE ALSO BEING LITIGATED IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF WASHINGTON (PACIFIC COAST UTILITIES SERVICE, INC. V. MELVIN LAIRD, SECRETARY OF DEFENSE, CIVIL ACTION NO. 329-71C2). YOUR TELEGRAM DATED MARCH 10, 1972, REQUESTING RECONSIDERATION OF OUR DECISION TO CLOSE OUR FILE ON THE PROTEST WAS DENIED BY OUR LETTER DATED APRIL 6, 1972.

WE CALL YOUR ATTENTION TO THE FACT THAT ON JANUARY 5, 1973, THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT RULED, IN THE CASE OF RAY BAILLIE TRASH HAULING, INCORPORATED V. KLEPPE, NO. 72-1163, THAT THE SMALL BUSINESS ADMINISTRATION MAY ACCEPT CONTRACT AWARDS FROM OTHER GOVERNMENT AGENCIES AND SUBCONTRACT THE WORK TO SOCIALLY OR ECONOMICALLY DISADVANTAGED PERSONS UNDER THE PROCEDURES ADOPTED BY SBA. INASMUCH AS THE COURT OF APPEALS FOR THE FIFTH CIRCUIT HAS DECLARED THE SECTION 8(A) PROGRAM VALID AND CONSTITUTIONAL AND ABSENT ANY DIFFERENT RESULT OUTSTANDING IN ANY OTHER CIRCUIT COURT, WE FIND NO BASIS TO QUESTION ITS VALIDITY.

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