Prime takes a hit for small biz subbing failure

Finally, a large federal prime contractor was held accountable for promising a lot--and achieving little--in subcontracting with small businesses.

The Government Accountability Office denied a protest from contractor Graybar after it was cut from the competition for a Defense Logistics Agency contract.

Graybar, in addition to having some technical deficiencies, displayed “consistent failure” in meeting its socioeconomic subcontracting goals in three recent contracts, the GAO said. After Graybar was dropped from the competition, the company filed a GAO protest. The GAO denied Graybar’s protest.

“Evidently, Graybar submitted an impressive subcontracting plan for the DLA solicitation, earning itself an “Outstanding” for its subcontracting objectives,” Steve Koprince, contracting attorney who blogged about the case. “But when the DLA looked at Graybar’s actual subcontracting performance on three prior contracts, the DLA discovered a pattern of failing to meet subcontracting goals.”

He encouraged other agencies to consider large primes’ past subcontracting record as part of the evaluation process.

Graybar executives did not respond to a request for comment.

More information: http://goo.gl/u5sTv5

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