GAO Report Shines Light On Contractors with Delinquent Taxes

For most Americans, tax season is happily behind them and Memorial Day festivities signaled the start of summer. A recent GAO report, however, may give cause for some federal contractors to revisit their tax policies before lighting up the grill next weekend.

Contracting Officers are required to take in a wealth of information prior to awarding a contract. One piece of information each contracting officer is supposed to review is the tax status of offerors. If an offeror is delinquent in paying taxes, the contracting officer has several subsequent review steps to take. But contracting officers do not not always conduct this review, so Congress asked GAO to review the impact of these missing steps.

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SmallGovCon Week in Review: May 20 – 24, 2019

Happy Memorial Day! Please take some time this weekend to remember those veterans who have sacrificed for our country.

And amidst the fun of kicking off summer this weekend, you can read up on some of the latest happenings in government contracting. In this Memorial Day edition of the SmallGovCon Week in Review, you can read about GSA’s new e-commerce platform, a new federal civilian cloud platform, and whether cyber security failures can lead to a false claims case.

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COFC Clarifies When Agency Must Seek Clarification

Agencies have some discretion to seek clarification of a question after reviewing a proposal. But when must the agency do so? GAO allows agencies substantial discretion in choosing whether or not to seek proposal clarifications. But the Court of Federal Claims has a dramatically different standard than GAO for reviewing when an agency must seek clarification for a proposal.

A recent Court of Federal Claims decision confirms (as in a 2016 decision) that agencies should seek clarification for obvious proposal errors. But according to the court, there is a difference between an obvious proposal error and a calculated decision on the contractor’s part. This decision was about how to tell the difference.

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GAO Sustains Protest after Awardee Credited with Strengths Not Present in its Proposal

Strong working relationships between contractors and contracting officers are a significant asset. For example, the Customs and Border Patrol recently relied heavily on its experience working with the incumbent contractor to “infer” proposed technical approaches and award corresponding strengths. Unfortunately, when this award was subsequently protested, GAO did not agree with the Border Patrol’s inferential technique.

As GAO explained, a reviewing agency may not credit a bid with technical strengths that are not present within the proposal.

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OHA: Owners Did Not Have Enough Managerial Experience to Qualify Concern as a WOSB

SBA’s socio-economic set-aside programs mandate compliance with multiple control requirements. An important one stipulates that a woman owner of a WOSB (or a veteran for a SDVOSB or a disadvantaged owner for an 8(a) business) must have the “managerial experience of the extent and complexity to run the concern.”

But what, exactly, does this requirement entail? A recent OHA case provides some important guidance.

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