An agency properly refused to apply the HUBZone price preference when the agency determined HUBZone company’s proposal was unclear as to whether the company would comply with the subcontracting limits set forth in the Federal Acquisition Regulation’s HUBZone price preference clause.
In a recent bid protest decision, the GAO held that the Defense Logistics Agency (DLA) reasonably refused to apply the HUBZone price preference in a procurement for supplies because the HUBZone company’s proposal suggested that HUBZone companies might perform less than 50% of the manufacturing costs.
The GAO’s decision in Wakan, LLC, B-408535.2 (June 19, 2014) involved a DLA procurement for chicken products. The procurement included a small business set-aside portion and an unrestricted portion. The unrestricted portion of the procurement was to be awarded on a lowest-price, technically acceptable basis.