ASBCA Applies Christian Doctrine to Payment and Performance Bonding

Federal construction contracts incorporate the FAR’s payment and performance bonding requirements as a matter of law, even if the solicitation omits these bonding provisions.

In a recent Armed Services Board of Contract Appeals decision, K-Con, Inc., ASBCA Nos. 60686, 60687 (2017), a contractor ran headlong into construction bonding issues when the Army demanded payment and performance bonding for two of its construction contracts despite there being no bonding requirements in either of the contracts. According to the ASBCA, the bonds were required anyway.

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GAO: Extraneous Information Sinks Offeror’s Proposal

A recent GAO decision should serve to caution offerors to be careful what they include with their proposals. Any information that contradicts the proposal or otherwise does not conform to the terms of the solicitation could result in disqualification.

In Independent Systems, Inc., B-413246 (Comp. Gen. Sept. 15, 2016), GAO held that the agency could reasonably disqualify an offeror based on extraneous information the offeror included with the intent of providing the agency with more information, but not changing the terms of the offer.

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SmallGovCon Week In Review: January 16-20, 2017

It is inauguration day, and we are beginning a new chapter in America’s history. We’re expecting lots of government contracting changes in short order (beginning with repeals of some of the Obama Administration’s Executive Orders), so check in with us here on SmallGovCon regularly for updates.

As we honor our nation’s unparalleled tradition of peaceful transitions of power, it’s time for the SmallGovCon Week In Review. In this week’s edition, two commentators weigh in on the GAO’s denial of four protests of the major Alliant 2 GWAC, two major corporations are facing potential debarment stemming from alleged discrimination, Set-Aside Alert discusses how the new Trump Administration will affect small contractors, and much more.

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SBA To Provide Strategy For Small Businesses To Improve Cybersecurity

By the middle of this year, the U.S. Small Business Administration should have a strategy in place to assist small businesses with cybersecurity.

The 2017 National Defense Authorization Act is chock full of interesting legal changes for government contractors, and although we have chronicled it in depth, that does not mean there is not necessarily more to be mined from the whopping 1,587-page legislation.

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Federal Court Again Says Agency Erred By Not Clarifying Proposal Errors

A procuring agency erred by failing to seek clarification of obvious errors in an offeror’s proposal, according to a recent ruling by the U.S. Court of Federal Claims.

In Level 3 Communications, LLC v. United States, No. 16-829 (2016), the Court held that although a Contracting Officer has discretion over whether to seek clarification of a proposal, this discretion is not unlimited. By failing to clarify obvious errors, the Contracting Officer’s decision was arbitrary, capricious, and an abuse of discretion.

The decision builds on a 2013 case, BCPeabody Construction Services, Inc., No. 13-378C (2013), in which the Court reached a similar conclusion. But so far, the GAO has drawn a hard line, essentially holding that an agency’s discretion in this area is unlimited.

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ITVAR Nonmanufacturer Subject To 150-Employee Size Standard, Court Says

An offeror submitting a proposal under a solicitation designated with the Information Technology Value Added Resellers exception to NAICS code 541519 must qualify as a small business under a 150-employee size standard–even if the offeror is a nonmanufacturer.

In a recent decision, the U.S. Court of Federal Claims held that an ITVAR nonmanufacturer cannot qualify as small based solely on the ordinary 500-employee size standard under the nonmanufacturer rule, but instead must also qualify as small under the much smaller size standard associated with the ITVAR NAICS code exception.

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