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B-229873 1 (1988-11-29)

handle is hein.gao/gaobadnhj0001 and id is 1 raw text is: The Comptroller General of the United States Washington, D.C. 20548 Decision Small Business Administration Questions about Matterof- Funding of Small Business Development Centers File: B-229873 Date: November 29, 1988 DIGEST Although the bona fide needs rule, 31 U.S.C. S 1502(a), applies to grants and cooperative agreements as well as procurement contracts, the Small Business Administration (SBA) did not violate the bona fide needs rule by making 1-year cooperative agreement awards to Small Business Development Centers (Centers) on September 30 of 1 fiscal year even though the cooperative agreement work was to be done in the next fiscal year. The SBA's bona fide need is to provide assistance to the Centers by entering into grants or cooperative agreements within the fiscal year sought to be charged. 64 Comp. Gen. 359 (1985) distinguished. DECISION The Small Business Administration (SBA) asks several questions about application of the bona fide needs rule, 31 U.S.C. S 1502(a), to its funding of certain Small Business Development Centers' (Centers) cooperative agree- ments on September 30 of a fiscal year, notwithstanding the fact that the services provided by the Centers will be performed in the subsequent fiscal year. The answer is that the rule is not violated. The agency's bona fide need is to provide assistance to Centers by entering into grants or cooperative agreements within the fiscal year sought to be charged. In the assistance relationship considered here the dates on which the recipient of support in turn provides services to others is irrelevant for purposes of determining when a bona fide need arose. We will set forth the specific questions, agency positions where appropriate, and answers following the Background section. we also distinguish 64 Comp. Gen. 359 (1985). 2 T6/0 //3 7 ;4 7

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