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NAICS APPEAL OF: DELLEW CORPORATION, APPELLANT

SBA No. NAICS-5837, 20172017 WL 2618804June 9, 2017

SBA No. NAICS-5837, 2017 (S.B.A.), 2017 WL 2618804
Small Business Administration (S.B.A.)
Office of Hearings and Appeals
[North American Industry Classification System]
*1 NAICS APPEAL OF: DELLEW CORPORATION, APPELLANT
*1 SBA No. NAICS-5837
*1 RFQ No. N0018917RZ058

*1 U.S. Department of the Navy

*1 NAVSUP Fleet Logistics Center

*1 June 9, 2017
 
ORDER DISMISSING APPEAL1
  
I. Background
 
*1 This appeal involves a task order under the Naval Supply Systems Command (NAVSUP) Global Business Support (GBS) Multiple Award Contract (MAC) program. The GBS MAC solicitation was issued in 2014 and was assigned a single North American Industry Classification System (NAICS) code—561210, Facilities Support Services. On May 5, 2017, NAVSUP issued Request for Quotations (RFQ) N0018917RZ058 for a task order to be performed by eligible GBS contract holders. The Contracting Officer (CO) set aside the order for Women-Owned Small Businesses and designated NAICS code 561210.
*1 On May 15, 2017, Dellew Corporation (Appellant) filed the captioned appeal. Appellant contends that NAICS code 561210 does not best describe the work, and that the most appropriate NAICS code is 541214, Payroll Services.
*1 On May 30, 2017, the CO responded to the appeal. The CO maintains that the appeal is untimely because NAICS code 561210 is the only code associated with the underlying GBS contracts, and Appellant did not challenge the NAICS code at the time the GBS solicitation was issued. (CO's Response at 1.) On May 31, 2017, Coastal Management Solutions, Inc. (CMS) intervened and moved to dismiss the appeal, supporting the CO's position that the appeal is untimely. CMS reiterates that the GBS MAC procurement was assigned a single NAICS code. Therefore, CMS asserts, all task orders issued under the contracts are required to utilize that same NAICS code. (CMS Motion at 2, citing 13 C.F.R. § 121.402(c)(1)(i).) The time for challenging the NAICS code was when the GBS solicitation was issued in 2014. CMS complains that Appellant, as one of the GBS MAC awardees, “should not be allowed to sit on its concerns, receive an award, and raise for the first time that a NAICS Code previously unreferenced and unrelated to the GBS MAC Program is the appropriately designated code.” (Id. at 3.)
*1 On June 1, 2017, OHA directed Appellant to respond to the motion to dismiss, explaining that “[u]nder the regulations governing OHA appeals, ‘[a]ll non-moving parties must file and serve a response to [a] motion or be deemed to have consented to the relief sought.”’ (Order at 1, citing 13 C.F.R. § 134.211(c).) OHA instructed Appellant to respond no later than June 6, 2017. To date, Appellant has not responded to the motion.
 
II. Analysis
 
*1 SBA regulations provide that “[f]or a Multiple Award Contract, the contracting officer must ... [a]ssign the solicitation a single NAICS code and corresponding size standard which best describes the principal purpose of the acquisition ... only if the NAICS code will also best describe the principal purpose of each order to be placed under the Multiple Award Contract.” 13 C.F.R. § 121.402(c)(1)(i). Alternatively, the contracting officer may “[d]ivide the solicitation into discrete categories ... and assign each discrete category the single NAICS code and corresponding size standard that best describes the principal purpose of the goods or services to be acquired under that category ....” Id. § 121.402(c)(1)(ii). When placing orders under a MAC, “the contracting officer must assign a single NAICS code for each order.” Id. § 121.402(c)(2)(i). If there are multiple NAICS codes available under the MAC, “the contracting officer must assign the NAICS code and corresponding size standard that best describes the princip[al] purpose of each order.” Id.
*2 Here, Appellant seeks to challenge the NAICS code assigned to a task order under a MAC. The problem for Appellant, though, is that because the GBS MAC was assigned only one NAICS code, any task orders issued thereunder must utilize that same NAICS code. Indeed, by choosing to assign a single NAICS code to the underlying GBS MAC, the CO implicitly determined that this NAICS code “will also best describe the principal purpose of each order to be placed under the Multiple Award Contract.” 13 C.F.R. § 121.402(c)(1)(i). Likewise, OHA has recognized that a CO may not designate a NAICS code to a task order that was not assigned to the underlying contract. NAICS Appeal of Global Dynamics, LLC, SBA No. NAICS-5470 (2013). Appellant—like all GBS contract holders—was on notice in 2014 that task orders issued under the GBS MAC would utilize NAICS code 561210. Appellant's opportunity to challenge the NAICS code for these task orders, then, was in 2014 when the GBS MAC was issued. At this time, OHA cannot afford Appellant the relief it now seeks.
 
III. Conclusion
 
*2 Because OHA cannot consider NAICS codes beyond the code assigned to the GBS MAC, this appeal is not redressable and is therefore DISMISSED. This is the final decision of the Small Business Administration. 13 C.F.R. § 134.316(d).
*2 Kenneth M. Hyde
*2 Administrative Judge

Footnotes

This appeal is decided under the Small Business Act of 1958, 15 U.S.C. § 631 et seq., and 13 C.F.R. parts 121 and 134.
SBA No. NAICS-5837, 2017 (S.B.A.), 2017 WL 2618804
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