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B-205961.3 1 (1982-08-03)

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                        UNITED STATES GENERA!. ACCOUNTING OFFICE
                                ASHINGTON, DC. ..20540


   C[VICr OF GcrIUrAL COUnSrL

           B-20596193                            August 3, 1982


           The Honorable I?aul S.. Sarbnes._.. J'p
           Unlitc i ;tates tHenate
           Dear Senator Sarbanes:

                This responds to your July 7,. 1982 letter requesting
           our comments on a letter to you from SES, cIn, regarding
           a Federal Aviation Ad.ministration contract anO the Federal
           Gov6rnment's small buriness procurement practices.

                SES essentillJy raises two matteru, First, SES
           complains about Vhe F4A's rejection of Its prime con-
           tractor's proposal under solicitition DTPAO-81-R-15475.
           The proposal was rejected because the.FAA determined
           that it w.;as unacceptable ond could n(t readily be made
           acceptable without major revision, SES contends that
           a more objective approach should have been employed,
           evidently because SES believes that it can meet the
           1AAIS needs despite the deficient proposal.

                Second, SES contends that notwithstanding solici-
           tation announcements in the Commerce Business Daily, small
           buriness sot-asides, and small business coordinators
           in Federal purchasing departments, the Government does
           little to foster the growth of non-rminority small business.
                We are not aware of the precise factual situation
           involved regarding SES's first point since, as the firm's
           letter notes, it withdrew the bid protest that it filed
           with our Office against the rejection of its prime's
           offer after the finm was debriefed by FAA officials.
           Irl this respect, we did not know until we roceived your
           letter that SES was only a prospective subcontractor;
           we generally restrict our bid protest forum to the prime
           contractor, since that is the party with the direct inter-
           est in the contract aard.
                As a general matter, however, a Procuring aency
           may exclude from thu competition1 belic considercci  for the
           Contract award those firms who)se proposls pluffer from
           deficiencies that would crequiree majo- revisiols to correct.

                                toc.ret


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