Kingdomware Doesn’t Affect SBA Size Protest Timeliness, Says SBA OHA

The Supreme Court’s now-famous Kingdomware decision doesn’t affect the timeliness of SBA size protests of GSA Schedule orders.

In a recent decision, the SBA Office of Hearings and Appeals rejected the notion–based in part on Kingdomware–that an GSA Schedule order is a “contract” for purposes of the SBA’s size protest timeliness rules.  Instead, OHA held, the SBA’s existing rules clearly distinguish between contracts and orders, and often effectively do not permit size protests of individual orders.

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SmallGovCon Week In Review: February 27-March 3, 2017

March has arrived, and March Madness will be here soon. With the Kansas Jayhawks looking like a top seed and my Duke Blue Devils sitting at Number 14 in the Coaches Poll, I’m hoping to be watching my teams a lot this month.

While we await conference tournaments and Selection Sunday, it’s time for the SmallGovCon Week In Review.  This week’s edition is packed with the latest developments in government contracting, including guilty pleas from seven defendants accused of contract fraud, questions about the Trump administration’s position on category management, the Federal Times takes a look at which agencies will have the most follow-on work up for grabs in 2017, and much more.

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Agency’s Discretion Over Solicitation’s Technical Specifications Isn’t Unlimited

A major tenet in government contracting is that agencies enjoy broad discretion in identifying their needs and developing the most appropriate solicitation to satisfy them. Though broad, this discretion is not unlimited. If challenged, an agency must demonstrate that its specifications are reasonably necessary to meet its needs and are not unduly restrictive of competition.

GAO recently affirmed this principle in Pitney Bowes, Inc., B-413876.2 (Feb. 13, 2017), when it sustained a protest challenging a solicitation’s requirements as being unduly restrictive of competition.

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Evaluation Of Subcontractor Past Performance Not Required For FSS Procurements

For Federal Supply Schedule procurements, agencies are not required to evaluate past performance references of subcontractors, unless the solicitation provides otherwise.

As one offeror recently discovered in Atlantic Systems Group, Inc., B-413901 (Jan. 9, 2017), unlike negotiated procurements, where agencies “should” evaluate the past performance of subcontractors that will perform major or critical aspects of the contract, offerors bidding under FSS solicitations should not assume that a subcontractor’s past performance will be considered.

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SBA OHA: “Manufacturer” Need Not Create Most Expensive Component

The SBA Office of Hearings and Appeals reaffirmed recently that a business need not manufacture the most expensive component of an item in order to be considered its manufacturer.

Rather, under the SBA’s size rules, a company may be considered a manufacturer if it adds important functionality to the end product, even if the proportion of total dollar value added by the company is relatively small.

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GAO: Failure To Explain Prejudice Doomed Otherwise Successful Protest

Imagine that you’re a manufacturer of appliances, and respond to a solicitation seeking one of your appliances (on a brand name basis). You, of course, propose to provide your appliance. But you lose out on an award to an offeror that submits an offer for a different appliance that admittedly does not comply with the solicitation’s minimum requirements.

In this situation, you’d probably be fairly upset. And as a recent GAO decision acknowledged, you’d likely have a successful basis of protest—that is, if you could establish that you were prejudiced by the government’s award decision, and if you understood what exactly the GAO means by “prejudice.”

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SmallGovCon Week In Review: February 20-24, 2017

It’s hard to believe, but this is already the last SmallGovCon Week In Review of February 2017. The year seems to be flying by, and there’s never a shortage of government contracting news. This week is no exception.

In this edition of the SmallGovCon Week in Review, one commentator suggests that the Trump administration revive an old contracting practice, a Pennsylvania man faces up to 10 years in prison after admitting to paying bribes and kickbacks on federal construction projects, government contracting gurus Guy Timberlake and Mark Amtower offer some candid commentary on the industry, and much more.

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