Jefferson Consulting Group, LLC (B-421775.5)

You should care.

Category: Size certification, novation

Date: 15 November 2024

URL: https://www.gao.gov/products/b-421775.5

Jefferson Consulting Group protested its exclusion from consideration for award under GSA's OASIS+ procurement after recertifying as other than small due to a change in ownership. The case addresses the interpretation of 13 CFR § 121.404(g)(2)(iii), which states that if a merger occurs more than 180 days after offer submission, award "can be made" but won't count toward small business goals. Jefferson argued this language required GSA to consider its proposal despite the size recertification.

The key issue was whether SBA regulations required GSA to make an award to Jefferson after it recertified as other than small. GAO found that the plain language of 13 CFR § 121.404(g)(2)(iii) is permissive, not mandatory; agencies have discretion to make award in such cases but are not required to do so.

GAO denied the protest, finding GSA acted within its discretion to exclude Jefferson's proposal after the company recertified as other than small. This decision clarifies that agencies have discretion in handling postoffer size recertifications on small business set-asides, even when the timing would technically permit an award.

Digest

Protest challenging the exclusion of the protester's proposal from consideration for award under a solicitation that was set aside for small businesses is denied where the protester had recertified as other than small in accordance with federal regulations.