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B-195449 1 (1979-10-23)

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GAO                                                        m..t_ .. _-.- -.
United Stites General Accountilng Oftice         Office'of
Wastl:ngton, D) 20548'                           General Counsel


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The Hlonorakle ?ortney H. Sturk1%,
Member, flouse of Ropreseitatives
7 Iastmont Hall4.
Oakland, California 94605


In.Reply
Refor t&


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October 2


B-195449

13, 1979


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Dear Mr. Stark:              A           
     Wereer toyopr letterldated Sapteinber.8\1979;9
 concer'ntngiArqata At5QisCiates,,,,inoJ3 and.4-e ff, iVato
 ne9otiAte a contract;, withthe Nivy fo ,miTitenanre   it
 engineering servicesrat the Combat Syatjms\TechnicaL 9
 School& Command, under ,the 8(a)' program of the Small
 Business AdminiiSratlon.       

     .As you point out, we prevlopiy 46cCoppd .our,44 ie,
   b c u e t e ' vy,;'t %',.'      .  . \A . . ,1,v a
 beause the Nhvyinformed us,. that;  reld ngtiations
 with Arpata  ftercnaicelig,the unrestrilted procurpeint
 for these servicest' By ma!.Jgram of. 'eptemr,, 4, Arc%ta
       ,  I ,                     ( .. ,.4,,, . i-- i t %... ,.
 reinstatedits protest, basicaly s.tting-th as Lts x
 basis for protest is contentionsth&:the,\$avv, rejeeteQ
 its proposals fat reasons which went 'eyont$a t tt0ttement
 of work. In additibn, Arcata allegedLb'.as..bcai se it',
 believed that the.Navy n curaged othe.' gL, 'mz topr.pwre
 for an unrestricted p ocurement' at the-\lime  jvy was.
 negotiating with Arcatt' under, the8(a)r9 rOgra..u

     On September 27, we, summarily.,.den ieO!Aucnta's se&-,
 ond protest, and furnis ie'your office w'th acppy.
 You. may not have had th opportunity 'to rdeyl'W.   that  V
 decision prior to your mos; recent inquiryk  '

     Our ,most recent de6fsi n; copy on 1Qs , pin',s out
 that ageilcydecisi6ns not,\toente\v ;into a ?tion 0(a) '
 contract, including decistbns bsed on the.\waluation.,
 of proposals, submitted undcr.tthe 4(a) progra4l generally
 are not matters-for legal ievewjby  ur Offi. under our
 bid protest function. In addition, we found that it
* is not improper for an agen'.y to prepare or ev, n conduct
ai unrestricted procurement while discussions are taking
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