GAO to NIH: Document the Rule-of-Two logic
Three capable small businesses did not become zero merely because teaming was involved.
What happened
GAO publicly posted LJR Solutions, LLC on August 24, sustaining a protest of NIH's plan to compete a scientific-services multiple-award IDIQ on a full-and-open basis with a small-business reserve. The decision itself is dated August 14.
NIH's 2024 market research had identified three capable small businesses. Its later analysis did not meaningfully explain why those firms were no longer capable, and it treated reliance on subcontractors as a weakness even though NIH believed large firms would also need teammates and the solicitation allowed subcontracting. GAO also found no adequate consideration of a partial set-aside.
Why CMCoE cares
This is an early, concrete application of Revolutionary FAR Overhaul Part 19: a streamlined rule still needs a reasonable, contemporaneous acquisition record. The most durable takeaway is not 'set aside everything.' It is 'show your work.'
Regulatory fine print
GAO did not decide that every multiple-award IDIQ must be set aside. It recommended that NIH reassess whether a full or partial set-aside is appropriate, including new market research if needed. The holding turns on this record's internal inconsistency and inadequate documentation.
Sources
- GAO — LJR Solutions, LLC, B-424487 (U.S. Government Accountability Office, )