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B-219654.3 1 (1986-04-30)

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                            THE COMPTROLLER GENERAL
   0KC1ISION                OF THE UNITEO INTATEN
                          WASHINGTON, 0.C. 20548




   FILE:     B-219654.3           DATE: April 30, 1986

   MATTER OF:       Small Business Administration--
                      Request for Reconsideration

   DIGEST:


       Prior decision in The W.H. Smith Hardware
       Co., B-219654, Nov. 12, 1985, 85-2 C.P.D.
       T536, is clarified to assure that it not
       be construed as establishing a-waiver from
       the Certificate of Competency procedure.

     The Small Business Administration (SBA) requests that
we reconsider the holding of our decision in The W.H. Smith
Hardware Co. (Smith), B-219654, Nov. 12, 1985, 85-2 C.P.D.
  536. In that decision, we held that while there was no
small purchase exception from the requirement that a procur-
ing activity--here, the Defense Logistics Agency (DLA)--
submit a small business nonresponsibility determination to
the Small Business Administration (SBA) for consideration
under the certificate of competency (COC) procedures, the
nonreferral at issue was not prejudicial to Smith because
SBA had denied three Smith COC referrals from the DLA within
the 2 months after the agency's nonresponsibility determina-
tion in the present procurement. We viewed these as affirm-
ing the agency's determination since the same facts were in
issue.

     SBA requests reconsideration on the basis that
procuring agencies are required to refer nonresponsibility
determinations to SBA for final disposition on each specific
procurement and because of its concern that agencies may
interpret the decision as providing an exemption. We affirm
the decision. However, in view of SBA's stated concern with
the possible ramifications of the decision, we provide the
following clarification for future application.

     The Smith decision was limited to a particular set of
relatively unique facts. Smith had been found nonrespon-
sible under a small purchase procurement at a time when the
SBA had amended its regulations to remove the former small


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