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B-271559 1 (1996-07-16)

handle is hein.gao/gaocrptaeex0001 and id is 1 raw text is: 


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

Decision



Matter of: Support Services International, Inc.

File:       B-271559; B-271559.2

Date:       July 16, 1996

Joel C. Mandelman, Esq., for the protester.
Mike Colvin, Department of Health and Human Services, for the agency.
Jennifer D. Westfall-McGrail, Esq., and Christine S. Melody, Esq., Office of the
General Counsel, GAO, participated in the preparation of the decision.
DIGEST

1. Indian Health Service (IHS) did not violate the Buy Indian Act by failing to set
aside a health care-related acquisition for Indian-owned companies since under the
Buy Indian Act IHS has the discretion to set procurements aside for Indian-owned
firms, but is not required to set aside any particular procurement.

2. Contracting agency has not adequately justified its decision not to solicit the
incumbent and instead to award to another company on a sole source basis where
the record fails to demonstrate a reasonable basis for the agency determination that
the incumbent could not be expected to perform the services satisfactorily.

DECISION

Support Services International, Inc. (SSI), an Indian-owned company, protests the
award of an interim contract to McKesson Drug Company under request for
proposals (RFP) No. 785, issued by the Phoenix Area Indian Health Service (IHS),
Department of Health and Human Services (HHS), for the purchase and delivery of
drugs on the Federal Supply Schedule (FSS) to Indian health clinics located in
Arizona, Nevada, and Utah. The protester complains that the award improperly was
made on a sole source basis to a company that is not Indian-owned.

We sustain the protest.

BACKGROUND

In March 1995, the IHS awarded a contract consisting of base year plus two 1-year
options contract to SSI under RFP No. 753, a Buy Indian Act set-aside for the
distribution of drugs and pharmaceutical items on the FSS to IHS hospitals and
clinics located in Arizona, Nevada, and Utah. At the conclusion of the base year,


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