B-152297, NOV. 7, 1963

B-152297: Nov 7, 1963

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TO THE SECRETARY OF THE ARMY: WE HAVE RECEIVED YOUR REPORT DATED SEPTEMBER 26. THE RECORD SHOWS THAT WHEN BIDS WERE OPENED ON MAY 29. SPRINGFIELD WHITE CASTLE COMPANY WAS FOUND TO BE LOW BIDDER. ITS SIZE STATUS WAS QUESTIONED BY RICE. DECIDED THAT SPRINGFIELD WAS NOT A SMALL BUSINESS. AWARD OF THE CONTRACT WAS HELD UP PENDING AN APPEAL BY SPRINGFIELD. UPHELD THE DETERMINATION THAT THE LOW BIDDER WAS NOT SMALL BUSINESS. THIS DETERMINATION WAS ALSO ADVERSE. WHICH WAS TO HAVE EXPIRED ON JUNE 30. WAS TO BE HELD UP PENDING RECEIPT OF A FURTHER DETERMINATION BY THE ADMINISTRATOR OF THE SMALL BUSINESS ADMINISTRATION. AGAIN HELD THAT SPRINGFIELD WAS NOT A SMALL BUSINESS. THIS AFFIRMATIVE ACTION BY SPRINGFIELD WOULD NOT HAVE RENDERED THAT COMPANY ELIGIBLE FOR AWARD OF THE SUBJECT CONTRACT.

B-152297, NOV. 7, 1963

TO THE SECRETARY OF THE ARMY:

WE HAVE RECEIVED YOUR REPORT DATED SEPTEMBER 26, 1963, ON THE PROTEST OF RICE CLEANING SERVICE AGAINST THE DELAY OF THE AWARD OF A CONTRACT SET ASIDE FOR SMALL BUSINESS UNDER INVITATION FOR BIDS NO. DA-15-056-63-89, ISSUED AT FORT CAMPBELL, KENTUCKY, FOR CUSTODIAL SERVICES.

THE RECORD SHOWS THAT WHEN BIDS WERE OPENED ON MAY 29, 1963, SPRINGFIELD WHITE CASTLE COMPANY WAS FOUND TO BE LOW BIDDER, BUT ITS SIZE STATUS WAS QUESTIONED BY RICE. ON OR ABOUT JUNE 21, 1963, THE OFFICE OF SMALL BUSINESS SIZE STANDARDS, SMALL BUSINESS ADMINISTRATION, WASHINGTON, D. C., DECIDED THAT SPRINGFIELD WAS NOT A SMALL BUSINESS. AWARD OF THE CONTRACT WAS HELD UP PENDING AN APPEAL BY SPRINGFIELD. ON OR BEFORE JULY 9, 1963, THE SMALL BUSINESS ADMINISTRATION, OFFICE OF SMALL BUSINESS SIZE STANDARDS, UPHELD THE DETERMINATION THAT THE LOW BIDDER WAS NOT SMALL BUSINESS. SUBSEQUENTLY, THE OWNERS OF SPRINGFIELD REALLOCATED THE STOCK AMONG THEMSELVES. THEREAFTER, THE COMPANY REQUESTED AND ON JULY 23 RECEIVED A RECONSIDERATION OF THE DECISION OF JULY 9. THIS DETERMINATION WAS ALSO ADVERSE, AND SPRINGFIELD AGAIN REQUESTED AND RECEIVED RECONSIDERATION. IN THE MEANTIME IT CONTINUED TO PERFORM CUSTODIAL SERVICES UNDER MONTHLY EXTENSIONS OF THE PREVIOUS ANNUAL CONTRACT AT THE PROCURING ACTIVITY, WHICH WAS TO HAVE EXPIRED ON JUNE 30, 1963. THE AWARD OF THE CONTRACT TO THE SECOND LOW BIDDER, RICE CLEANING SERVICE, WAS TO BE HELD UP PENDING RECEIPT OF A FURTHER DETERMINATION BY THE ADMINISTRATOR OF THE SMALL BUSINESS ADMINISTRATION. THIS DETERMINATION, DATED SEPTEMBER 27, 1963, AGAIN HELD THAT SPRINGFIELD WAS NOT A SMALL BUSINESS. SPRINGFIELD HAS NOW SUBMITTED TO OUR OFFICE A PROTEST AGAINST THE ADMINISTRATOR'S DECISION.

WE UNDERSTAND THAT AN AWARD HAS NOW BEEN MADE TO RICE CLEANING SERVICE. HOWEVER, IT SHOULD BE NOTED THAT EVEN IF THE REALLOCATION OF STOCK BY THE OWNERS OF SPRINGFIELD AFTER JULY 9 HAD SUCCESSFULLY DISSIPATED THE ONUS OF AFFILIATION WITH OTHER COMPANIES, AND HAD RESULTED IN A DETERMINATION BY THE SBA THAT SPRINGFIELD HAD BECOME A SMALL BUSINESS, THIS AFFIRMATIVE ACTION BY SPRINGFIELD WOULD NOT HAVE RENDERED THAT COMPANY ELIGIBLE FOR AWARD OF THE SUBJECT CONTRACT, THE BIDS FOR WHICH HAD BEEN OPENED ON MAY 29, 1963. SEE 41 COMP. GEN. 47, 55; B-149695, DATED OCTOBER 26, 1962, 42 COMP. GEN. 219.