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B-298533 1 (2006-11-01)

handle is hein.gao/gaocrptasqx0001 and id is 1 raw text is: A G A O Comptroller General . Accountability * Integrity * Reliability of the United States United States Government Accountability Office Washington, DC 20548 Decision Matter of: Celadon Laboratories, Inc. File: B-298533 Date: November 1, 2006 Lawrence A. Kessner, Esq., for the protester. Douglas Kornreich, Esq., Department of Health and Human Services, for the agency. Katherine I. Riback, Esq., and James A. Spangenberg, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Agency failed to determine whether the evaluators of the protester's proposal under a Small Business Innovation Research program solicitation had a conflict of interest, where the evaluators were employed by firms that promote a type of technology that assertedly is directly challenged by the type of technology offered in the protester's proposal. DECISION Celadon Laboratories, Inc. protests the decision of the Department of Health and Human Services (HHS) not to fund its phase I proposal under the Small Business Innovation Research (SBIR) program solicitation No. PHS 2006-1. Celadon asserts that the agency failed to reasonably consider conflicts of interest that it contends likely impaired the objectivity of the four members of the Special Emphasis Panel (SEP), which evaluated its proposal. We sustain the protest. The SBIR program is conducted pursuant to the Small Business Innovation Development Act, 15 U.S.C. § 638 (2000), which requires certain federal agencies to reserve a portion of their research and development funds for awards to small businesses. Firms first apply for a 6-month phase I award to test the scientific, technical, and commercial merit and feasibility of a certain concept. If phase I is successful, the firm may be invited to apply for a phase II award to further develop the concept. After the completion of phase II, firms are expected to obtain funding from the private sector and/or non-SBIR government sources to develop the concept

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