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B-200177 1 (1980-09-29)

handle is hein.gao/gaobacusg0001 and id is 1 raw text is: 







OFFICE OF GENERAL COUNSEL


UNITED STATES GENERAL ACCOUNTING OFFICE
       WASHINGTON, D.C. 20548


B- 200177

SE P 2 919O


Lu-San Enterprises, Inc.
144 Van Dyke Street
Brooklyn, New York  11231


      Attention:  Mr. Joseph DiMare
                  Vice-President

Gentlemen:

      This is in response to your letter of August 25, 1980,
in w.hich you requested our consideration of the Department of
theArmyk   decision to set aside a contract for the procure-
ment of custodial servicesjat Fort Monmouth, New Jersey forc     (3
socially and economically aisadvantaged contractors under
section 8(a) of the Small Business Act.  This set-aside,
you assert, will have an undue impact upon your business.

      As we advised your Mr. Phillip Tursi on September 17,
1980, section 8(a) of the Small Business Act, 15 U.S.C. S
637(a), as aimended by Pub. L. 95-507, October 24, 1978, 92
Stat. 1757, authorizes the Small Business Administration
(SEA) to enter into contracts with any Government agency
with procurement powers and to arrange for the execution
of such contracts by letting subcontracts to socially
and economically disadvantaged small businesses.  Agency
contracting officers are authorized in their discretion
to let contracts to SBA.  In view of this discretionary
authority, we do not generally review agency determina-
ticns to set aside contracts for section 8(a) awards un-
less it appears that the determinations resulted from
fraud or bad faith on the part of Government officials.
E-Z Tight, Inc., 59 Comp. Gen. 122 (1979), 79-2 CPD 394;
American Electronic Laboratories, Inc., B-199390, July 23,


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