(Editor’s Note.  The following demonstrates the type of “market research” agencies should pursue to determine if a solicitation will be limited to small businesses or to all-sized bidders)

On May 28 the Department of Interior, Minerals Management Service (MMS) published a pre-solicitation notice announcing its intent to procure a report addressing more innovative health activities.  The notice set forth a two-step process where interested parties were to request a copy of the solicitation by June 4 and then submit by June 17 a capabilities statement.  Twenty businesses requested a copy of the solicitation by June 4 including six small businesses, two of which included capability statements with their requests.  Notwithstanding the expressions of interest on the part of small businesses the RFP was not set aside for small businesses but was issued on an unrestricted basis.  Prior to the new due date for receipt of capabilities statements, Information Ventures (IV) filed a protest challenging the fact the procurement was not set aside for small business concerns in accordance with FAR 19.502-2(b).  The provision generally requires COs to set aside for small businesses all procurements exceeding $100,000 if there is a reasonable expectation of receiving fair market price offers from at least two responsible small business concerns where the government must undertake reasonable efforts to ascertain whether it is likely to receive offers from the two.

In response to the protest the CO stated MMS contracting personnel reviewed the GSA Advantage online database, GSA “in stock” programs and GSA special order programs that may be purchased from supply schedule contractors.  All eligible contractors, including several small businesses, were identified from these sources and when they were contacted by telephone, indicated they could not perform the contracts leading the CO to conclude there was not a reasonable expectation that two small businesses could perform the work.  IV asserted and the Comp. Gen. agreed that a proper market research should have included researching the Central Contractor Registration (CCR) database and obtaining input from the Small Business Administration and the Department of Interior small business representative.  The Comp. Gen. ruled the CO was on notice that substantial small business interest in this procurement existed prior to issuance of the solicitation on June 18 and concluded the CO did not reasonably consider whether the procurement could be set aside for small business participation (Information Ventures, Inc. Comp. Gen. Dec. B-294267).

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