of some generalized interest in the fair administration of a program for which they may be ineligible, plaintiffs cannot attack the award of this contract as racially discriminatory.
The Court finds that the defendants in this case were authorized to withdraw the Phase II contract from competitive bidding by the Small Business Act, 15 U.S.C. §§ 637(a)(1), 634(b)(6); SBA regulations 13 C.F.R. 124.8-1; by the Economic Opportunity Act, 42 U.S.C. § 2906(c), and by two Executive Orders, Exec.Order No. 11458 (34 Fed.Reg. 4937 (1969)), and Exec. Order No. 11625 (36 Fed.Reg. 19967 (1971)). The legality of Section 8(a) was recognized in Space Services of Georgia, Inc. v. Laird, et al., D.C.D.Conn. August 17, 1972, Civ.Action No. 15,170. Plaintiffs' assertion that the program is designed to award contracts on the grounds of race has no merit in the face of an eligibility standard that is not defined racially, but by social or economic disadvantage. Kleen-Rite v. Laird, W.D.Mass., Sept. 21, 1971, Civ. Action No. 71-1968-W. The mere fact that, in some areas of the country, "disadvantaged" is synonymous with "minority" is no evidence that anything other than the standard of disadvantaged status was used. Having themselves benefitted from a program which uses contracts withdrawn from open competitive bidding to assist small businesses, plaintiffs ironically challenge this same procedure as a violation of federal procurement law. (see 15 U.S.C. § 637(a)(2), 41 U.S.C. § 252(c)(10). The Court finds that the general policy of competitive bidding in federal procurement is wholly inapplicable to a contract which SBA has specific statutory authority to enter. Kleen-Rite, supra ; 41 U.S.C. § 252(c)(15). Finally, the Court finds that SBA's action is not in contravention of the regulation which prohibits recurring contracts from placement through the 8(a) program. Entirely separate from the Phase I construction contract, the Phase II contract for building improvement and maintenance does not fall within the meaning of "recurring" intended by the regulation 13 C.F.R. 124.8-1(d)(3).
This memorandum opinion will constitute findings of fact and conclusions of law.
Accordingly, it is by the Court this 2nd day of October 1972
Ordered that defendants' motion for summary judgment be, and it is hereby, granted; and it is further
Ordered that plaintiffs' motion for summary judgment be, and it is hereby, denied.