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B-194053 1 (1979-07-19)

handle is hein.gao/gaobadhkp0001 and id is 1 raw text is: 





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FILE: B-194053

NMWDEb     :


    7,    THE COMPTROLLER GENERAL
  7  K    OF  THE   UNITED STATES
          WASHINGTON, O.C. 20548




                FAM   July 19, 1979
Orincon Corporation


DIGEST:

   1.  Question of whether firm is eligible for
       assistance under section 8(a) of Small
       Business Act is basically matter for deter-
       mination by Small Business Administration
       and is not subject to legal review by GAO.

   2.  GAO review of Small Business Administration
       (SBA) action under 8(a) program is limited
       to determining whether SBA has followed its
       regulations. Where firm was determined eli-
       gible and accepted into 8(a) program based
       on social disadvantage alone and law and
       regulations were subsequently changed to re-
       quire both social and economic disadvantage,
       recommendation is made to SBA to review firm's
       eligibility to determine if it should be allowed
       to  continue to participate in 8(a) program or
       if participation should be terminated in accor-
       dance with present law and regulations.

       Orincon  Corporation (Orincon) protests the award
   of a subcontract y    ,t mall Business Administration
   (SBA) to Scient      s Aems, Inc. (Scientific), under
   request for proposals F33615-79-R-3014 issued by
   Wright-Patterson Air Force Base, Ohio. The solicita-
   tion, which calls for a study to develop optimization
   techniques applicable to flight performance analysis
   methods, was set aside by the Air Force for minority
   business enterprises pursuant to section 8(a) of the
   Small Business Act, 15 U.S.C. § 637(a)(1) (1976).

        Orincon contends that Scientific does not qualify
   as a section 8(a) minority business enterprise. In
   support of this contention, Orincon alleges that the
   principals of Scientific are not economically and
   socially deprived and that they are aliens, being
   citizens of India. In addition, Orincon claims that
   Scientific has become a self-sustaining, competitive
   entity and, therefore, does not need procurement
   assistance from the Government.


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