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B-404241,B-404241.2 1 (2011-01-19)

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A     ,   GA       O                                                  Comptroller General
       Acc untabiity * Integrity * Reliability of the United States
 United States Government Accountability Office
 Washington, DC 20548

             D   ..
          Decision


          Matter of:  B&B  Medical Services, Inc.; Rotech Healthcare, Inc.

          File:       B-404241; B-404241.2

          Date:       January 19, 2011

          Richard L. Moorhouse, Esq., Greenberg Traurig LLP, and Kyle R. Jefcoat, Esq.,
          Latham & Watkins LLP for the protesters.
          Stephen F. Butera, Esq., Department of Veterans Affairs, and Sam Q. Le, Esq., Small
          Business Administration, for the agencies.
          Cherie J. Owen, Esq., and Sharon L. Larkin, Esq., Office of the General Counsel,
          GAO, participated in the preparation of the decision.
          DIGEST

          Statutory non-manufacturer rule does not apply to procurements set aside for
          Historically Underutilized Business Zone small business concerns.
          DECISION

          B&B  Medical Services, Inc., of Oklahoma City, Oklahoma, and Rotech Healthcare,
          Inc., of Orlando, Florida, protest the terms of request for proposals (RFP)
          No. VA-244-10-RP-0221 issued by the Department of Veterans Affairs (VA) for home
          oxygen equipment rental and services. Specifically, the protesters challenge the VA's
          decision not to apply a statutory non-manufacturer rule to the solicitation, and the
          agency's decision to set aside this procurement for Historically Underutilized
          Business Zone (HUBZone) small businesses. B&B also asserts that the agency must
          evaluate non-manufacturers using a 500-employee size standard.

          We deny the protests.

          BACKGROUND

          The RFP, issued on September 28, 2010, as a HUBZone small business set-aside,
          contemplates the award of a firm fixed-price requirements contract to provide home
          oxygen equipment rental and services to VA beneficiaries within defined geographic
          areas. RFP at 1, 68. The agency first began attempting to fulfill this requirement
          under RFP VA-244-09-RP-0252, issued on August 19, 2009, as a small business
          set-aside. The agency initially assigned North American Industry Classification

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