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B-202358.2 1 (1981-12-15)

handle is hein.gao/gaobadjxr0001 and id is 1 raw text is: Na - P. ~.--a4. - - - ...~- . - . - . - - - - Eii§PSJIA /(7&S2~ * i ; U *it .9 I t<,.92b~..E-JPr * A IL... IJIAt (P ..~ ~~-*4*' - - '.~ 4 - THIE COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON, Q,C0. 2M5413 B-202358.2 DATE: December 15, MATTER OF: AMF Wyott, Inc. -- Reconsideration DIGEST* Whether management agreement between 8(a) firm and large business removes management 5nd con-. trol over daily operations from 8(a) firm so that firm would not be eligible for 8(a) assist- ance under statutory criteria is matter within reasonable discretion of Small Business Admin- istration (SBA). AMF Wyott, Inc. requests reconsideration of our de- cision, B-202358, March 17, 1981, 81-1 CPD 205, concern- ing the Small Business Administration's (SPA) proposed award of a subcontract to A&S Tribal Industries under the 8(a) program. We dismissed AF's contention that A&S was ineligible for award under the 8(a) program without requesting an agency report on the basis that this Office will not question SBA's eligibility deter- minations absent a showing of fraud or tbad faith. The basis for protest is that A&S does not meet the statutory criterion that at eligible 8(a) firm's man- agement and daily operations be controlled by socially and economically disadvantaged individuals. In this regard, AMF notes that the top management officials of A&S have been obtained from the Brunswick Corporatiun through a management agreement between Brunswick and A&S. Conse- quently, the protester believes that the SBA's inclusion of A&S in the 8(a) program is inconsistent with the law and therefore amounts to bad faith and suggests fraud. SBA reports that in 1974 it'determined A&S eligible for the 8(a) program and approved the management agreement between A&S and the Brunswick Corporation. At that time eligibility for the 8(a) program was governed by SBA Standard Operating Procedure 60-41 which provided that 8(a)-eligible firms ':must be owned and controlled by a disadvantaged person. Subsequently, in October 1978, section 8(a)(4) of the Small Business Act, 15 U.s.C. S 637(a)(4) (Supp. III 1979), was enacted. This section D.ECISION FILE: 1981 I

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