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B-184294 1 (1975-07-14)

handle is hein.gao/gaobadclv0001 and id is 1 raw text is: 



                              THE  COMPTROLLER GENERAL
 ECISION . OF THE UNITED STATES
                              WASHINGTON. 0. C. 20549




 FILE:    B-184294                   DATE:   July 14, 1975

 MATTER OF: Sunshine Peninsula, Inc.


 DIGEST:

    Question concerning small business size status of bidder is
    not for consideration since conclusive authority over ques-
    tion is vested by statute in SBA.


    Sunshine  Peninsula, Inc. (Sunshine), has protested against an
award to Fennell and Associates (Fennell), under small business set-
aside invitation for bids No. N62467-74-B-0538, issued by the Depart-
ment of the Navy, Naval Facilities Engineering Command, Charleston,
South Carolina.

     Sunshine contends that Fennell is not a small business concern
because it has reason to believe that the parties which own the con-
trolling interest of Fennell also own the controlling interest of
Mamba Engineering, Inc., which has receipts approaching $18 million
for the preceding fiscal year. Sunshine claims that this violates
the small business regulation at 13 C.F.R. § 121.3-2(a)(1) (1974).

     Pursuant to 15 U.S.C. § 637(b)(6) (1970), the Small Business
Administration (SBA) is empowered to determine a business concern's
size status for procurement purposes. Offices of the Government
having procurement powers must accept as conclusive any determination
reached by SBA as to which concerns are to be designated as small
business.  In discharge of this .responsibility, SBA has promulgated
regulations which have the force and effect of law (Otis Steel Prod-
ucts Corporation v. United States, 161 Ct. Cl. 694 (1963)), found at
part 121 of chapter I of the C.F.R., title 13 (1974).

     Section 121.3-4 (1974), Size determinations, states, in perti-
nent part, that:

          Original size determinations shall be made by the
     Regional Director, or his delegatee, serving the region
     in which the principal office of the concern (not includ-
     ing its affiliates) whose size is in question is located
     * * *.  Such determination shall be final unless appealed


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