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B-276300 1 (1997-06-03)

handle is hein.gao/gaocrptafxy0001 and id is 1 raw text is: oComptroller General of the United States Washington, D.C. 20548 Decision DOCUMENT FOR PUBLIC RELEASE A protected decision was issued on the date below and was subject to a GAO Protective Order. This version has been redacted or approved by the parties involved for public release. Matter of: DGS Contracting Services, Inc. File: B-276300 Date: June 3, 1997 Richard D. Lieberman, Esq., and J. Randolph MacPherson, Esq., Sullivan & Worcester, for the protester. James E. Stancil for Bach Security Services, Inc., an intervenor. Diane D. Hayden, Esq., and Howard B. Rein, Esq., Department of the Navy; and Audrey H. Liebross, Esq., Small Business Administration, for the agencies. John Van Schaik, Esq., and Michael R. Golden, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Based on consideration of government estimate, prices submitted by the protester, and prices on another similar contract, agency reasonably determined that the price of a modification to a contract under the 8(a) program represented a fair market price. 2. Protest that actions of contracting agency in offering contract work to the Small Business Administration (SBA) for the 8(a) program violated the offering letter rule is denied where SBA officials were aware of protester's incumbency and where SBA assumed, in any event, that incumbent contractor would prefer to continue performance. 3. Protest that decision of the Small Business Administration (SBA) to accept contract work into the 8(a) program violated the adverse impact rule is denied where applicable regulations call for presumption of adverse impact on a small business if work at issue represents 25 percent or more of small business's annual gross sales, but SBA reasonably relied on value of the work in the 3-month contract work, rather than taking annualized-value approach advocated by protester. DECISION DGS Contracting Services, Inc. protests the modification of the contract of Bach Security Services, Inc., contract No. N62472-93-C-4705, awarded by the Small Business Administration (SBA) for security guard services for the Navy. We deny the protest.

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