Failure To Refer Questions Related to Responsibility to Small Business Administration

A company objected to the proposed rejection of its bid on the basis that it was not responsible. Since the two low small business bidders were determined by the agency to be deficient in personnel and equipment, rejection without reference to the Small Business Administration (SBA) for consideration of the issuance of a Certificate of Competency was improper. Certificate of Competency procedures were not required to be followed if the contracting activity had reason to believe that there was a lack of business integrity on the part of the proposed awardee. However, SBA was required to be notified of the negative determination and could appeal to the head of the procuring activity. Therefore, the question of the responsibility of the two rejected bidders should be referred to the SBA prior to award.