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B-278839 1 (1998-03-20)

handle is hein.gao/gaocrptahqi0001 and id is 1 raw text is: oComptroller General of the United States Washington, D.C. 20548 Decision Matter of: I.S. Grupe, Inc. File: B-278839 Date: March 20, 1998 Peter B. Schipma for the protester. Michael Colvin, Department of Health & Human Services, for the agency. Linda S. Lebowitz, Esq., and Michael R. Golden, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Agency's decision not to fund the protester's proposal for a Phase II effort under a Small Business Innovation Research program procurement was not objectionable where the record supported the agency's conclusion that the protester's proposal was technically unacceptable. DECISION I.S. Grupe, Inc. protests the decision by the Agency for Health Care Policy and Research, Department of Health & Human Services (HHS), not to award it a Phase II contract under request for proposals (RFP) No. AHCPR-97-0021 for a project the firm proposed under the agency's Small Business Innovation Research (SBIR) program. The protester contends that the agency improperly determined that its proposal, entitled Internet Multimedia Cancer Patient Education System, was technically unacceptable and would not continue to be funded. We deny the protest. The RFP was issued on July 10, 1997, under the SBIR program. This program was established under the Small Business Innovation Development Act of 1982, 15 U.S.C. § 638 (1994), which requires certain federal agencies, including HHS, to establish SBIR programs. Under these programs, the agencies reserve a statutory percentage of their research and development budgets for award to small business concerns for research or research and development through a three-phase process. The purpose of the work performed under Phase I is to determine the scientific or technical merit and feasibility of ideas submitted under the SBIR program; under Phase II (awarded on the basis of Phase I results), to identify the potential for yielding a product or process of continuing interest to the agency; and under Phase III (involving private capital), to pursue commercial applications of the research or development. The funding vehicle for this HHS SBIR program in both Phase I and Phase II was contracts, rather than cooperative agreements or grants.

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