Cost Realism: Using Offeror’s Actual Rates Was Unobjectionable

In conducting a cost realism evaluation, an agency was entitled to use an offeror’s historic approved indirect rates and current incumbent direct labor rates to upwardly adjust the offeror’s evaluated cost, in a case where the offeror’s proposed rates were significantly lower.

The GAO recently held that an agency did not err by adjusting a protester’s rates to better align with the protester’s historic indirect rates and current direct rates, where the agency was unable to determine that the protester’s significantly lower proposed rates were realistic.

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Large Business Ineligible For SDVOSB Verification Protest, Says Court

A large business couldn’t demonstrate that it was eligible to pursue a bid protest challenging a VA SDVOSB sole source contract award.

In a recent decision, the U.S. Court of Federal Claims held that a protester, which was a large business under the NAICS code assigned to the SDVOSB sole source contract, had not demonstrated standing to challenge the contract award. The sole source contract in question wasn’t just any contract, either–but a contract to oversee the VA’s verification process for SDVOSBs and VOSBs.

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Does Kingdomware Apply To Non-VA FSS Orders?

Earlier this year, the United States Supreme Court issued its decision in Kingdomware Technologies v. United States. As we’ve noted, this case was a monumental win for veteran-owned small businesses—it requires the Department of Veterans Affairs to set-aside solicitations for SDVOSBs or VOSBs where two or more such offerors will submit a proposal at a fair and reasonable price, even if that solicitation is issued under the Federal Supply Schedule.

A recent GAO decision suggests, however, that Kingdomware’s impact could be felt beyond the world of VA procurements. Indeed, the Supreme Court’s rationale in Kingdomware might compel every agency to set aside any FSS order (or any other order, for that matter) valued between $3,000 and $150,000.

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SmallGovCon Week In Review: October 3-7, 2016

While we are diving into fall weather here in Kansas, my colleagues and I are thinking of everyone on the East Coast dealing with Hurricane Matthew.  We hope that everyone makes it through the storm safe and sound.

Hurricane Matthew is at the top of the news headlines this week, but there’s still plenty happening in the world of government contracting.  In this edition of SmallGovCon Week In Review, we bring you articles final FAR rule restricting awards to companies with unpaid tax liabilities, two separate cases regarding alleged discrimination by government contractors, a new beta version of a Freedom of Information Act Wiki was launched, a major expansion of the HUBZone program, and much more.

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SDVOSB & 8(a) Fraud: Prison Sentences Handed Down

A North Carolina couple is heading to prison after being convicted of defrauding the SDVOSB and 8(a) Programs.

According to a Department of Justice press release, Ricky Lanier was sentenced to 48 months in federal prison and his wife, Katrina Lanier, was sentenced to 30 months for their roles in a long-running scheme to defraud two of the government’s cornerstone socioeconomic contracting programs.

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ASBCA: Government Properly Terminated Contractor for Preliminary Finding of SCA Violation

The government can terminate a contract when the Department of Labor has made a preliminary finding of non-compliance with the Service Contract Act, even if the contractor has not exhausted its remedies fighting or appealing the finding.

The 3-0 (unanimous) decision by the Armed Services Board of Contract Appeals in Puget Sound Environmental Corp., ASBCA No. 58828 (July 12, 2016) is troubling because it could result in other contractors losing their contracts based on preliminary DOL findings–perhaps even if those preliminary findings are later overturned.

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SBA Releases “All Small” Mentor-Protege Template & Application

The SBA has released a sample template mentor-protege agreement, and accompanying application information, for its new “all small” mentor-protege program.

The template calls for the parties to select from up to six categories of assistance that the mentor may provide, and requires the parties to set forth specific details about the nature of the planned assistance, the timeline for providing it, and milestones for measuring success.  The application form, in turn, requires the protege to have a written business plan, and will require mentors and proteges to complete an online training module if they apply after November 1, 2016.

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