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B-184313 1 (1976-04-26)

handle is hein.gao/gaobaddoq0001 and id is 1 raw text is: 9- OLE ( ~ ~THE COMPTROLLER GENERAL DECISION - OF THE UNITED STATES WASHINGTON. 0.C. 20549 FILE: B-184313 DATE: April 26, 1976 MATTER OF: Kleen-Rite Corporation DIGEST: Contract set aside for small business and awarded to firm ultimately determined to be large business should not be terminated for Government's convenience notwithstanding alleged feasibility of such action since record does not show that contractor certified itself as small business in bad faith and award was made in accordance with appli- cable regulation on basis of SBA's initial determination that firm was small. However, agency should not exer- cise option to extend contract term beyond initial period awarded. Kleen-Rite Corporation has protested to our Office the failure of a contracting officer to terminate two contracts awarded to T&S Service Associates, Inc., which subsequent to the awards was found to be other than a small business and thus ineligible for the procurements. Invitations for bids (IFB) Nos. DAEAO8-75-B-0014 and DAEAO8-75-B-0015 were issued by Fort Ritchie, Maryland, for janitorial services. Both solicitations were totally set aside for small business concerns. T&S was the low bidder and Kleen-Rite was the second low bidder. Kleen-Rite timely protested the size status of T&S to the contracting officer and to this Office. On July 8, 1975, the Small Business Administration (SBA), Boston Regional Office, determined that T&S was a small business concern for purpose of these procurements. Kleen-Rite timely appealed that decision to the SBA Size Appeals Board. Shortly thereafter, this Office denied Kleen-Rite's protest questioning T&S's responsibility (an issue no longer pursued by Kleen-Rite) and rejected as premature, pending the determina- tion of the SBA Size Appeals Board, Kleen-Rite's contention that T&S was not a small business. Kleen-Rite Corp., B-184313, -1-

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