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B-184844 1 (1976-02-02)

handle is hein.gao/gaobaddrh0001 and id is 1 raw text is: 






DECISION





FILE:  B-184844


         STHE COMPTROLLER GENERAL
.         .OF THE UNITED STATES
            WASH IN GTON, O.C. 2054 8




                   DATE:    February 2, 1976


MATTER OF: W. E. Yoder, Inc.


DIGEST:


Protest against award of contract to Small Business
Administration under section 8(a) of Small Business
Act is denied since records show that set-aside deter-
mination was reasonable exercise of administrative
discretion.


c~q(5~7


       This protest involves the Navy's determination to award a
contract to the Small Business Administration (SBA) under section
8(a) of the Small Business Act, 15 U.S.C. 637(a) (1970 ed.).
W. E. Yoder, Inc. (Yoder) contends that, because it has been very
active in bidding for this type of contract (maintaining and
inspecting railroad and crane trackage at the U.S. Navy Base,
Philadelphia, Pennsylvania), and because such contracts have been
competitively bid in the past, the procurement's removal from the
competitive arena will do Yoder irreparable harm.

       The Navy reports that it had planned to advertise this
procurement when the SBA proposed that the project be performed
under section 8(a) of the Small Business Act. 15 U.S.C. 637(a)
(1970 ed.).  The proposed contractor is Diaz Contracting Inc.,
which company presently is performing the work as obtained through
formal advertising.  Since this work is being performed in a satis-
factory manner, the Navy states that it has no objection to the
8(a) award or to the selection of the proposed contractor.

       In addition, the record shows that SBA determined thatthe
proposed 8(a) set aside will not have a sizeable impactupon/the
protester's! company.  Under its standard operating procurements
(SOP 60-41, Revision 1), SBA will not seek to obtain an 8(a) award
if such action may result in major hardship to a small business
firm.  Since Diaz is the incumbent contractor and would not be
displacing a small business, SBA concluded that the set-aside was
proper in accordance with its SOP.


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