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B-202268 1 (1981-09-24)

handle is hein.gao/gaobabker0001 and id is 1 raw text is: - r ~COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON D.C. 20548 B-202268 September 24, 1981 The Honorable Edward R. Roybal House of Representatives Dear Mr. Roybal: We refer to your letter dated February 11, 1981, concerning contract DACW57-80-C-0030 awarded by the Corps of Engineers. You suggest that the contract fails to meet the requirements of section 8(d) of the Small Business Act as amended by section 211 of Pub. L. No. 95-507, October 24, 1978, 92 Stat. 1757, 15 U.S.C. § 637(d) (Supp. III 1979), which states the Federal Government's policy that small and small disadvantaged business concerns will have the maximum practicable opportunity to participate in the performance of Federal contracts. You also ask our opinion on whether the subcontracting provisions set out in section 8(d) are mandatory or voluntary, i.e., even if subcontracting possibilities exist, does the prime contractor still have the discretion not to subcontract. We believe the law does not req lire a prime con- tractor to subcontract and that the contract in ques- tion does not violate section 8(d). To implement the policy expressed in section 8(d), the statute requires that before the award of either an advertised or negotiated contract which may exceed $1,000,000 in the case of construction of a public facil- ity or $500,000 in other cases, and which offers subcon- tracting possibilities, the prospective awardee must submit a subcontracting plan as described in section 8(d) (6). The subcontracting plan essentially is to provide the maximum practicable subcontracting opportunity for small pnd small disadvantaged business. When approved by the

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