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B-270881 1 (1996-05-10)

handle is hein.gao/gaocrptaebq0001 and id is 1 raw text is: Comptroller General of the United States Washington, D.C. 20548 Decision Matter of: BFI Medical Waste Systems of Arizona, Inc. File: B-270881 Date: May 10, 1996 Allen Samelson, Esq., Rogers, Joseph, O'Donnell & Quinn, for the protester. Terrence J. Tychan, Department of Health and Human Services, for the agency. Jerold D. Cohen, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest of decision to set a procurement aside for small businesses is sustained where the record does not support the agency's determination that there was a reasonable expectation of bids from at least two responsible small businesses. DECISION BFI Medical Waste Systems of Arizona, Inc., protests the decision by the Phoenix Area Office of the Indian Health Service (IHS), Department of Health & Human Services (HHS), to set aside for small businesses invitation for bids (IFB) No. 5015 for the collection and disposal of medical waste. We sustain the protest. Federal Acquisition Regulation (FAR) § 19.502 requires that a solicitation be set aside for small business participation when there is a reasonable expectation that offers will be obtained from at least two responsible small business concerns, and that award will be made at a fair market price. IHS set the procurement aside after the IHS small and disadvantaged business utilization specialist (SADBUS) and the contracting officer agreed that a set-aside was warranted under the FAR criteria. IHS mailed out 11 copies of the solicitation and received two bids in response, one from a small business, Arizona Medical Waste Management, Inc. ($152,496 total for a base year and 4 option years), and one from an ineligible large business ($230,828 total). BFI, which timely protested before bids were opened, argues that IHS made virtually no initial effort to determine whether the criteria in the FAR for a set-aside were met, and did not investigate the matter even after BFI raised the issue with 1017510

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