About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

LOG IN
LOG IN


B-145136 1 (1976-07-02)

handle is hein.gao/gaobaddbt0001 and id is 1 raw text is: THE COMPTROLLER GENERAL DECISION .F THE UNITED STATES WASHINGTON, D.C. 20546 tpqITV Q FILE: B-145136 DATE: July 2, 1976 MATTER OF: Department of Defense's Use of Total Labor Surplus Area Set-Asides DIGEST: -Proposed test for use of total labor surplus area set-asides procurements is approved subject to conditions that (1) ample competition is determined to exist under each set-aside selected for test, (2) set-aside will be canceled if bid prices are not in lowest price obtainable category, and (3) testing will be limited to small number of procurement actions. By letter of March 22, 1976, the Assistant Administrator for Contract Administration, Office of Federal Procurement Policy, has requested an advance decision concerning the propriety of a proposed test procedure within the Department of Defense involving total labor surplus area (LSA) set-aside proctrements. The Office of Federal Procurement Policy (OFPP) is willing to ask DOD to conduct a test of new approaches in assisting LSA firms to obtain contract awards provided that a test plan can be devised that will provide valid information which can be used in determining whether new legislation is actually needed, and in drafting any new legislation. However, OFPP recognizes that in order to carry out the intent of the Maybank Amendment (Sec. 644 of the 1954 Department of Defense Appropriation Act, 67 Stat. 357, and succeeding DOD appropriation Acts) which prohibits the payment of price differentials on contracts made for the purpose of relieving economic dislocations, the procure- ment regulations provide only for partial LSA set-asides. Consistent with the intent of the amendment, the decision in 40 Comp. Gen. 489 (1961) established the general policy that a LSA set-aside may only be made at the lowest price obtainable. OFPP offers certain rules under which the test of total LSA set-asides could be conducted without violating the intent of the amendment. The rules would require that: (1) there be a determina- tion of the extent of competition within labor surplus areas before making the set-aside, thus reasonably insuring that ample competition does in fact exist within LSAs; and (2) as a safety measure provide - 1 -