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B-270545 1 (1996-03-21)

handle is hein.gao/gaocrptadzp0001 and id is 1 raw text is: 


Comptroller General
of the United States
Washington, D.C. 20548

Decision




Matter of: Hatco Corporation

File:       B-270545

Date:       March 21, 1996

Timothy S. Kerr, Esq., Elliott Reihner Siedzikowski & Egan, for the protester.
Mariette Naughton for Naughton Energy, the intervenor.
Amalia Evola, Esq., and Benjamin G. Perkins, Esq., Defense Logistics Agency, for
the agency.
C. Douglas McArthur, Esq., and Christine S. Melody, Esq., Office of the General
Counsel, GAO, participated in the preparation of the decision.
DIGEST

Protest challenging awardee's eligibility for preferential consideration as a small
disadvantaged business on the ground that the supplier proposed by the awardee is
not a manufacturer is dismissed because the Small Business Administration is
vested with conclusive authority to decide that issue.
DECISION

Hatco Corporation protests the award of a contract to Naughton Energy under
request for proposals (RFP) No. SP0451-95-R-2181, issued by the Defense Logistics
Agency, Defense General Supply Center (DGSC) for the manufacture and supply of
synthetic lubricating oil. The protester contends that the agency improperly gave
Naughton preferential consideration for award available under the RFP to small
disadvantaged business (SDB) concerns.

We dismiss the protest.

On March 21, 1995, DGSC issued the RFP for award of a fixed-price requirements
contract for a base year, with two 1-year option periods, to supply synthetic
lubricating oil for use in aircraft turboshaft engines. The RFP provided for a partial
small business set-aside, with preferential consideration for SDBs. The RFP
required regular dealers claiming the preference as SDBs to agree to furnish only
items manufactured or produced by small business concerns in the United States.

After awarding the non-set-aside portion to Mobil Oil Corporation, the agency
conducted discussions with Naughton. Naughton agreed to accept an award at
Mobil's price plus a 10-percent premium allowed for SDBs. The agency awarded a


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