Simplified Acquisition Threshold Increase: My Interview With Francis Rose

The House of Representatives has proposed an enormous increase in the simplified acquisition threshold, from $150,000 to $500,000.  In an interview aired on June 4, Francis Rose and I discussed the proposed increase, as well as a recent GAO decision regarding an agency’s obligation (or lack thereof) when it comes to informing an offeror that its price is too high.

Click here to listen to my interview with Francis, and be sure to tune in to In Depth With Francis Rose weekdays from 4:00 p.m. to 7:00 p.m. Eastern on Federal News Radio.

Nonmanufacturer Rule Class Waivers: SBA OHA Explains How They Work

Under the nonmanufacturer rule, a class waiver applies to a procurement only if the NAICS code, Product Service Code and NAICS code descriptor match the item being procured.

Contrary to a common misconception, a nonmanufacturer rule class waiver is not authorized on the basis of the NAICS code alone.  In a recent size appeal decision, the SBA Office of Hearings and Appeals concisely explained how nonmanufacturer rule class waivers work.

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GAO: Initial Proposal “Nullified” By Solicitation Amendment

When an initial proposal is nullified by a subsequent solicitation amendment, an offeror must timely resubmit its proposal–or be eliminated from the competition.

As one offeror recently learned, an agency can nullify initial proposals with a solicitation amendment that substantially changes the solicitaton’s terms.  When that happens, an offeror can no longer rely on its initial proposal.

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GAO: Agency Need Not Raise Offeror’s High Price In Discussions

When an agency decides to hold discussions with offerors, must it discuss with an offeror the price proposed for the contract? Not unless that offeror’s proposed price is so high as to be unreasonable.

As the GAO held in a recent bid protest decision, unless an offeror’s price is so high as to make its proposal unacceptable, the offeror is not entitled to be informed during discussions that its price is too high–even if the price is significantly higher than competitors.

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8(a) Program Denial: Federal Lawsuit Available, Says SBA OHA

An 8(a) Program applicant may challenge the SBA’s denial of its application in federal court if the SBA Office of Hearings and Appeals lacks jurisdiction to hear the case.

According to a recent OHA decision, although OHA’s own jurisdiction in 8(a) denial matters is limited, a rejected applicant “is not utterly without recourse” because relief can be sought in court.

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