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PROCUREMENT - Bid Protests - GAO Procedures - Interested Parties DIGEST: Large business is not "interested party" within meaning of Bid Protest Regulations for purposes of protesting alleged improprieties in solicitation set aside for small business concerns. Since it is not eligible to receive award. The protester contends that certain IFB requirements will impede fair competition. dismiss the protest. We find that Dragon is not an "interested party" under our Bid Protest Regulations. A protester is not an interested party if it would not be in line for award if its protest were upheld. Since a large business is not eligible for award under an IFB set aside for small business concerns. Dragon is not an interested party.

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B-228912, Oct 7, 1987, 87-2 CPD 344

PROCUREMENT - Bid Protests - GAO Procedures - Interested Parties DIGEST: Large business is not "interested party" within meaning of Bid Protest Regulations for purposes of protesting alleged improprieties in solicitation set aside for small business concerns, since it is not eligible to receive award.

Dragon Services, Inc.:

Dragon Services, Inc., a large business, protests the award of a contract for emergency ambulance services for range support at Fort Dix, New Jersey under invitation for bids (IFB) No. DABT35-87-B-0054, issued by the Department of the Army as a total small business set aside. The protester contends that certain IFB requirements will impede fair competition. dismiss the protest.

We find that Dragon is not an "interested party" under our Bid Protest Regulations, 4 C.F.R. Sec. 21.1(a) (1987). To be considered an interested party having standing to protest a federal procurement, a party must be an actual or prospective bidder whose direct economic interest would be affected by the award of a contract or the failure to award a contract. C.F.R. Sec. 21.0(a); AAR Hrooks & Perkins, B-220026, Sept. 30, 1985, 85-2 CPD Para. 358. A protester is not an interested party if it would not be in line for award if its protest were upheld. Tri-States Service Co., B-211862, Sept. 26, 1983, 83-2 CPD Para. 374. Since a large business is not eligible for award under an IFB set aside for small business concerns, Dragon is not an interested party.

Dragon maintains it is an interested party because if no small business bids were received the set-aside could be waived, and its bid could be accepted for award. Dragon's understanding in this regard is simply incorrect. Where no small business bids are received in response to a set -aside IFB, the proper procedure is for the agency to withdraw the set- aside and resolicit so that all eligible bidders may have an opportunity to compete. Otis Elevator Co., B-195104 Sept. 20, 1979, 79-2 CPD Para. 206.

The protest is dismissed.

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