Summary

GAO surveyed the uniform Government-wide system for contracting for motion picture and videotape productions established by the Office of Federal Procurement Policy (OFPP) in connection with a protest filed by a firm against limitations on competition inherent in the uniform system. GAO also considered the position of the Small Business Administration (SBA) that the uniform system violates Federal law which empowers SBA to conclusively certify the responsibility of small business concerns. The firm contended that the system's prequalification of offerors, the limitation on the number of offerors that may respond to a solicitation, and the failure to require notice of requirements in the Commerce Business Daily violate procurement statutes and laws enacted for the protection of small business concerns. OFPP responded that the uniform system results in more meaningful competition by providing fair and open prequalification of sources, by establishing uniform evaluation criteria, by standardizing contract terms and conditions, and by establishing a central location for information concerning procurement activity. GAO held that, if made under the OFPP uniform system for contracting for film and videotape productions, any determination that a small business concern is not qualified to participate in competition for Government contracts is essentially a negative responsibility determination which must be referred to SBA under the certificate of competency program. The OFPP prequalification of offerors in connection with the uniform system is not unwarranted restriction on competition because all firms may attempt to qualify. However, use of the OFPP qualified list by procuring agencies in soliciting for a particular procurement is unduly restrictive of competition unless procurements are synopsized in the Commerce Business Daily and interested firms on the prequalified list are afforded an opportunity to compete. Further, procurements under the OFPP uniform system are not made by placing an order under an existing contract because the agreement between a qualified firm and the OFPP executive agent is not a contract within the meaning of the applicable statute and, therefore, must be synopsized in the Commerce Business Daily.