Rochester Optical Manufacturing Company, B-292247; B-292247.2, August 6, 2003

Rochester Optical Manufacturing Company, B-292247; B-292247.2, August 6, 2003 TITLE: Rochester Optical Manufacturing Company, B-292247; B-292247.2, August 6, 2003 BNUMBER: B-292247; B-292247.2 DATE: August 6, 2003 ********************************************************************** Rochester Optical Manufacturing Company, B-292247; B-292247.2, August 6, 2003 Decision Matter of: Rochester Optical Manufacturing Company File: B-292247; B-292247.2 Date: August 6, 2003 Robert G. Fryling, Esq., and Edward J. Hoffman, Esq., Blank Rome, for the protester. Dennis Foley, Esq., Department of Veterans Affairs, and Kenneth Dodds, Esq., U.S. Small Business Administration, for the agencies. Linda S. Lebowitz, Esq., and Michael R. Golden, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest challenging agency decision not to set aside procurement for small business concerns is sustained where decision was based on insufficient efforts to ascertain small business interest and capability to perform the requirement. DECISION Rochester Optical Manufacturing Company protests the decision of the Department of Veterans Affairs (VA) to issue on an unrestricted basis request for proposals (RFP) No. 626-09-03, for eyeglass fabrication and on-site eyeglass fittings in its Veterans Integrated Service Network (VISN) 9, which includes seven locations in the states of Kentucky, Tennessee, and West Virginia. Rochester, a small business concern, argues that the requirement should be set aside for small businesses, essentially contending that the agency failed to undertake sufficient efforts to ascertain small business interest and capability to perform the requirement. We sustain the protest. BACKGROUND Prior Procurements In 1999, the VA procured on an unrestricted basis a requirement for the fabrication of eyeglasses in VISN 9. (At the time, the standard industrial classification (SIC) code was 8099, with a corresponding $5 million average annual gross revenue requirement.) Three small business concerns--Schaeffer Eye Center, Korrect Optical, and Classic Optical--submitted proposals; the VA awarded an indefinite‑delivery/indefinite-quantity (ID/IQ) contract to each of these firms for the fabrication of eyeglasses in VISN 9. In 2001, the VA procured on a small business set-aside basis, under North American Industry Classification System (NAICS) code[2] 621320 (offices of optometrists, with a corresponding $5 million average annual gross revenue requirement) a requirement for the fabrication of eyeglasses and for the performance of eye exams in VISN 9. As relevant here, eyeglass fittings, which were to be priced under the line items for eyeglass fabrication, would take place off-site at a contractor's facility, as opposed to on-site at a VA facility. TC at 128-35. At the time of proposal submission, the following four firms self‑certified that they were small business concerns under the above-referenced NAICS code: Korrect, Classic, Rochester, and Barnett and Ramel. After determining, in accordance with Federal Acquisition Regulation (FAR) S: 19.502-2(b)(2), that these firms each proposed fair market prices, TC at 97-100, the VA awarded an ID/IQ contract to each of these firms to fabricate eyeglasses and to perform eye exams in VISN 9. After these awards were made, and as a result of size protests filed with the U.S. Small Business Administration (SBA), Korrect and Classic were determined by the SBA to be large businesses under NAICS code 621320; however, the VA determined that it would not be in the best interest of the government to terminate the Korrect and Classic contracts. Current Procurement On February 19, 2003, the VA issued the current RFP on an unrestricted basis, under NAICS code 446130 (optical goods store, with a corresponding $6 million average annual gross revenue requirement) for the fabrication of eyeglasses and for on-site eyeglass fittings in VISN 9. The VA contemplates the award of multiple, fixed‑price requirements contracts to the low-priced technically acceptable offerors.[3] In determining not to set aside this procurement for small business concerns, the VA's contracting officer provided the following justification in a *record of procurement request review for the Small Business Program*: Due to market survey in 1999, procurement was set aside as a small business under SIC 8099, $5.0 million.[4] Korrect Optical, Classic Optical, Schaeffer were small businesses. 2001 procurement was set aside to small business. 21 offers were requested, 4 offers were received. Of the four offers received, Korrect was considered a large business; Classic was a large business; Rochester was small business; Barnett and Ramel was small business with large business subcontractors. . . .