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B-276960 1 (1997-05-20)

handle is hein.gao/gaocrptagam0001 and id is 1 raw text is: 


oComptroller General
             of the United States
             Washington, D.C. 20548
             Decision




             Matter of: DLS Services, Inc.

             File:       B-276960

             Date:        May 20, 1997

             William H. Carroll, Esq., Dykema Gossett, for the protester.
             Thomas A. Darner, Esq., and Maria S. Kavouras, Esq., Environmental Protection
             Agency, for the agency.
             Adam Vodraska, Esq., Office of the General Counsel, GAO, participated in the
             preparation of the decision.
             DIGEST

             The General Accounting Office will not consider a protest challenging the
             substitution of one section 8(a) concern for another as the designee for a sole
             source contract award under the SBA's section 8(a) set-aside program.
             DECISION

             DLS Services, Inc., protests the substitution of Harombee Enterprises for DLS as the
             section 8(a) concern designated for a noncompetitive contract award under the
             Small Business Administration's (SBA) section 8(a) program pursuant to solicitation
             No. PB-CI-97-10203, issued by the Environmental Protection Agency (EPA) for
             janitorial services at the agency's laboratory in Ann Arbor, Michigan.

             We dismiss the protest.

             The protester, the incumbent 8(a) contractor, contends that EPA improperly
             requested that SBA rescind its initial designation of DLS for award of the follow-on
             contract after EPA and DLS were unable to reach agreement on price during
             contract negotiations.

             EPA explains that the impasse was reached after DLS failed to provide requested
             information justifying its price, specifically, information which substantiated why
             subcontracted work, direct labor costs, and other portions of its proposal were
             significantly higher than the costs under its previous contract. Because DLS's
             previous contract had expired and DLS refused to provide further services by
             purchase order, EPA states than it was left with little choice but to ask SBA to
             designate another 8(a) concern for the contract. SBA, which was involved in the
             negotiations, agreed to do so and withdrew its designation of DLS for the contract
             and designated Harombee instead. EPA then ended its negotiations with DLS, and,

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