Protest of Decision by Department of Navy To Set Aside IFB for Small Business Firms

A large business protested the decision of the contracting agency to set aside the invitation for bids for small business firms. The protester objected to the determination to restrict the procurement to small firms. It alleged that small business firms have already received more than a fair proportion of contracts for ship repair services; and contended that sufficient competition was not received, the award was not made at a reasonable price, and that the low bidder was not responsible. Failure to protest the set-aside prior to bid opening rendered that part of the protest untimely. Protests of affirmative determinations of responsibility, unless fraud is alleged on the part of the procuring officials or the solicitation contains defective responsibility criteria, are not considered. Further, the protester alleged that the price proposed by the low bidder was unreasonably high, and that the award should not have been made for that reason. The contracting officer must determine whether a particular bid price is reasonable and must act reasonably in making his determination. The protester's allegation that the contracting agency did not receive adequate competition was also without merit. The protest was denied.