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![handle is hein.gao/gaobadgmu0001 and id is 1 raw text is:
ta TME COMPTROL1, 'URAL4
DECISION OP THE UNITY 'AYES
WAFNINSTOr, Z 1. 20549
FILE: 8-192191 DATE: October 23, 15$77J
MATTER OF: osmose Wood Preserving Company of America,
Inc.
DIGEST:
Although id oi small business on
small bus.ness set-aside exceeded
courtesy bid submitted 1y large busi-
ness, dectrmination that bid is reason-
able is'ndt legally objectionable since
Small Busi'ness Act has been intrirpreted
to mean that Government may pay premium
price to sinall'!usiness firms o small
business restricted procurdnents and
sinre bid was lower than unchallenged
Goverr~ment estimate.
osmose :Wod Preserving Company ,of America, Inc.
(Osmose), prof6es*s the ward of a contract to Crest
Chemical i ;'fnspection Comoany, Inc. (Crest), under
tollcitat'ion No. 70-C0055, a small business set-aside,
ssued by the Bureau of Reclamation, Department of the
Interior, for inspection and treatment of woodpole
structures,
The bids received under the solicitation ranged
from $56,459.00 (submitted by Osmose) to $258,189,94.
The Government's estimate was $129,980. In accordance
with the Notice 6f Small Business Sot-Aside of the
solicitation (wkiidn limits the consideration of bids to
smallbusiness conceihs), the bid submitted by Osmose
was considered nonresponsive since Osmose was not a
small business. Therefore, Crest .Jas considered to be
the low responsive bidder in the amount of $98,512.10.
Osmose objects to acceptance of the higher-priced
bid. 'Osmose states'that the substantial difference
between its bid and the others submitted indicates that
the procurement should not have been set aside for small
business because [t]here are so few qualified small](ViewImageLocal?handle=hein.gao/gaobadgmu0001&div=1&collection=&method=preview&ext=.png&size=3)