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DIGEST: Contract awarded on the basis of an initial Small Business Administration (SBA) determination that awardee was a small business is valid and is not required to be terminated because SBA on appeal concludes that awardee is other than small. SRI contends that after the source selection was announced on May 25. The Small Business Administration (SBA) regional office determined the CRM was a small business concern. The SBA Office of Hearings and Appeals determined that CRM was not a small business concern. The contracting activity is not obligated to withhold an award pending the outcome of a size status appeal. When an award is made on the basis of a determination by the SBA's regional office.

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B-240975, Sep 5, 1990

DIGEST: Contract awarded on the basis of an initial Small Business Administration (SBA) determination that awardee was a small business is valid and is not required to be terminated because SBA on appeal concludes that awardee is other than small.

Attorneys

Service Resources, Inc.:

Service Resources, Inc. (SRI) protests the award of a contract to Capital Resource Management (CRM) under request for proposals No. 2 33384(BJY), issued by the Ames Research Center, National Aeronautics and Space Administration (NASA), as a small business set-aside.

SRI contends that after the source selection was announced on May 25, 1990, it timely protested CRM's small business size status. On June 29, 1990, the Small Business Administration (SBA) regional office determined the CRM was a small business concern; the contracting officer then made award to CRM.

SRI appealed, and on August 16, the SBA Office of Hearings and Appeals determined that CRM was not a small business concern. On August 28, NASA informed SRI that it did not intend to terminate the award to CRM.

The contracting activity is not obligated to withhold an award pending the outcome of a size status appeal. See Ultra Technology Corp., B-230309.6, Jan. 18, 1989, 89-1 CPD Para. 42. Consequently, when an award is made on the basis of a determination by the SBA's regional office, the award is valid and there is no requirements that it be terminated if the appeal is successful. Valley Constr. Co., B-234292, Feb. 8, 1989, 89-1 CPD Para. 130. Since NASA awarded the contract on the basis of the SBA regional office determination that CRM was a small business, the award is valid.

The protest is dismissed.

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