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B-274388 1 (1996-12-06)

handle is hein.gao/gaocrptaelw0001 and id is 1 raw text is: Comptroller General of the United States Washington, D.C. 20548 Decision Matter of: Simplix File: B-274388 Date: December 6, 1996 George Chisa for the protester. Douglas G. White, Esq., and Robert R. Goff, Esq., Defense Information Technology Contracting Organization, for the agency. Adam Vodraska, Esq., and James A. Spangenberg, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Objections to terms of revised license agreement for electronic data interchange value added network (VAN) services for the Federal Acquisition Computer Network on the basis that they impose too much risk on VAN providers are without legal merit as the government may impose substantial risk on its contractors. 2. Revised license agreement for electronic data interchange value added network services for the Federal Acquisition Computer Network need not be set aside for exclusive small business participation, even though there are numerous small businesses that can provide these services, because the regulatory set-aside requirements do not apply to contractual arrangements, such as the license agreement, that do not involve the expenditure of appropriated funds. DECISION Simplix protests the terms of the final revised license agreement for electronic data interchange (EDI) value added network (VAN) services issued by the Defense Information Technology Contracting Organization (DITCO) of the Defense Information Systems Agency.1 The VAN license agreement (VLA) continues the implementation and operation of the Federal Acquisition Computer Network (FACNET) through the licensing of firms to serve as electronic conduits of 1We assume jurisdiction here since under the Competition in Contracting Act of 1984, 31 U.S.C. §§ 3551-3556 (1994), as amended by Pub. L. No. 104-106, §§ 4321(d), 5501, 5603, 110 Stat. 186, 674, 698, 700 (1996), our bid protest jurisdiction encompasses the procurement of property or services by federal agencies and beneficial services will be provided to the government by the licensees. See Total Procurement Servs., Inc., B-255934.3, Aug. 16, 1994, 94-2 CPD 74. 344126

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