CW Construction Services & Materials, Inc., B-279724, July

B-279724 Jul 15, 1998 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights A firm protested the Small Business Administration's (SBA) determination that it was ineligible for a construction contract, contending that: (1) it satisfied the solicitation's geographical restriction; and (2) the geographic restriction included a latent ambiguity. GAO held that: (1) SBA reasonably determined the protester was ineligible for award based on the geographical restriction; and (2) protester did not demonstrate that it was prejudiced by the latent ambiguity. Accordingly, the protest was denied. View Decision Matter of: CW Construction Services & Materials, Inc. File: B-279724 Date: July 15, 1998 DIGEST Attorneys DECISION CW Construction Services & Materials, Inc. (CW) protests the determination by the Small Business Administration (SBA) that the firm is ineligible for award because it does not satisfy the geographic restriction contained in invitation for bids (IFB) No. DCA01-98-B-0025, issued by the U.S. Army Corps of Engineers, Mobile District for construction repairs at MacDill Air Force Base, Florida. The protester argues that the SBA's determination was unreasonable because CW maintains an office with at least one full-time employee within the geographic area specified in the IFB. The protester also argues that the IFB's geographic restriction contained a latent ambiguity. We deny the protest. BACKGROUND The IFB was issued on February 17, 1998, as a competitive small disadvantaged business set-aside under section 8(a) of the Small Business Act, 15 U.S.C. Sec. 637(a) (1994). The IFB sought bids for interior and exterior construction repairs to Dorm 371 in MacDill Air Force Base. In a letter dated January 22, the Army offered the requirement to the SBA's Miami District. The SBA's regulations require that a contract opportunity offered to the 8(a) program be awarded on the basis of a competition restricted to eligible participants where there is a reasonable expectation that at least two eligible program participants will submit offers and award can be made at a fair market price; and the anticipated award price exceeds $3 million for non-manufacturing contracts. 13 C.F.R. Sec. 124.311(a) (1998). Since the anticipated award price here was not expected to exceed that threshold, the Army requested the SBA's approval in competing the requirement. See 13 C.F.R. Sec. 124.311(c). The SBA approved the Army's request and also determined that the geographical area of competition for the requirement should be limited to the SBA South Florida District. /1/ As amended, the IFB contained the provision at Federal Acquisition Regulation (FAR) Sec. 52.219-18, Notification of Competition Limited to Eligible 8(a) Concerns--Alternate I (Nov. 1989), which states in part as follows: (a) Offers are solicited only from small business concerns expressly certified by the [SBA] for participation in the SBA's 8(a) Program and which meet the following criteria at the time of submission of offer-- . . . . . (4) The offeror's approved business plan is on the file and serviced by the following SBA district and/or Regional Office(s): Miami District: Regional: Small Business Administration Small Business Administration 1320 S. Dixie Hwy, 5th Floor Suite 318 Coral Gables, FL 33146 1720 Peachtree Rd., NW 305-536-5058 Atlanta, GA 30309 404-347-5052 The Army received eight bids by the time set on March 19 for bid opening, ranging from $1,386,900 to $2,149,446; CW submitted the low bid. In view of the IFB's geographic limitation, by letter dated March 23, the Army requested that the SBA determine whether the firms that submitted the lowest four bids were eligible for award. /2/ The address provided for CW in the Army's letter indicated that the firm is located in Longwood, Florida. According to the SBA, Longwood is within the jurisdiction of the SBA's North Florida District Office, in Jacksonville. As such, the SBA states that in order to be eligible for award under the IFB, CW would need to establish that it maintains a branch office within the South Florida District. See PI Constr. Co., B-272174, B-272177, Oct. 2, 1996, 96-2 CPD Para. 128 (SBA regulatory implementation of geographic restriction contemplates that 8(a) concerns will be eligible for award if they maintain a branch office in the designated area). The record shows that on March 24, Mr. Garcilaso Rey-Moran, an SBA official, telephoned CW president, Mr. Cecil V. Walker, to inquire whether CW maintained a branch office in the South Florida District. The record contains a declaration in which Mr. Rey-Moran states that he requested that Mr. Walker provide documentation routinely requested by the SBA to determine eligibility, such as a copy of a lease of office space and the name of an employee engaged in either marketing or other general business functions. According to Mr. Rey-Moran's declaration, Mr.