November 9 2007 Copyright 2007 Business Research Services Inc. 301-229-5561 All rights reserved.

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No Ruling On GSA Schedule Set-Asides

Whether certain GSA schedule orders must be set aside for small businesses remains in dispute.

The Government Accountability Office has dismissed on procedural grounds a protest by FitNet Purchasing Alliance of St. Augustine, FL, which sought to require GSA to set aside schedule orders valued between $3,000 and $100,000. GAO said Fitnet does not qualify as an interested party to file the protest because the company does not hold a GSA schedule contract.

SBA had sided with Fitnet, arguing that the Small Business Act requires all contracts in that price range to be set aside. GSA contends other provisions in law and regulation exempt the schedules from set-aside requirements. (SAA, 9/28)

FitNet filed its protest after the Army refused to set aside an order for wardrobe lockers valued at about $12,500. The company’s president, Raul Espinoza, has said he may take the issue to court.

GSA policy permits buyers to give preference to small businesses when ordering through the schedules, though set-asides are not permitted. Legislation is pending in Congress to allow set-asides on the schedules.

Agencies purchased $36 billion in goods and services through the schedules in 2006. About 35% of the dollars went to small businesses.

The decision is file number B-309911, available at www.gao.gov.


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