GAO: Subcontracting Uncertainty Means No HUBZone Price Preference Required

Posted on July 16, 2014 by Steven Koprince

An agency properly refused to apply the HUBZone price preference when the agency determined HUBZone company’s proposal was unclear as to whether the company would comply with the subcontracting limits set forth in the FAR’s HUBZone price preference clause.

In a recent bid protest decision, the GAO held that the Defense Logistics Agency reasonably refused to apply the HUBZone price preference in a procurement for supplies because the HUBZone company’s proposal suggested that HUBZone companies might perform less than 50% of the manufacturing costs.

Small Business Subcontractors: Accelerated Payment Policy Extended

Posted on July 15, 2014 by Steven Koprince

The Office of Management and Budget has extended a policy aimed at providing accelerated payments to small business subcontractors. Without an extension, the policy would have expired last week.

According to an OMB memorandum announcing the extension, the policy will remain in effect until December 31, 2016. In the meantime, the memo states, the FAR Council is “considering strategies that might be used over the longer term to help maintain effective cash flow and prompt payment to small business subcontractors.”

GAO: 45-Minute Bid Confirmation Deadline Was Unreasonable

Posted on July 14, 2014 by Steven Koprince

A procuring agency acted unreasonably by leaving a voicemail for a winning bidder requiring confirmation of the bid within 45 minutes of the voicemail.

In a recent GAO bid protest decision, the GAO found that the winning bidder had already confirmed its bid by responding to a Bid Validation request sent by the FedBid electronic reverse auction system. Under these circumstances, the agency’s second request for a bid validation–with a very short response time–was improper.

Subcontracting Plan Discrepancy Proves Costly To EAGLE II Offeror

Posted on July 11, 2014 by Steven Koprince

A discrepancy in a business’s subcontracting plan may have cost the offeror its shot at a position on the enterprise acquisition gateway for leading-edge solutions II IDIQ contract.

As demonstrated in a recent GAO bid protest, the business was downgraded on the small business participation factor because of a discrepancy in its proposal regarding subcontracting with SDVOSBs. Without the discrepancy, the large business might have landed a slot on EAGLE II.

8(a) Fraudster Hit With 42-Month Prison Sentence

Posted on July 8, 2014 by Steven Koprince

A federal judge has sentenced a Maryland man to 42 months in prison for fraudulently obtaining contracts under the 8(a) Program.

According to a Department of Justice press release, after Vernon J. Smith III serves his prison sentence, he will be subject to three years of supervised release. And on top of the prison sentence, the federal judge ordered Smith to pay more than $7 million in restitution and forfeiture.

SBA Proposed Rule Would Allow PTAC and SBDC Size Status Opinions

Posted on July 2, 2014 by Steven Koprince

Small Business Development Centers and Procurement Technical Assistance Centers would be permitted to issue advisory small business size status opinions under a proposed rule published last week by the SBA.

The proposed rule, which implements a section of the 2013 National Defense Advisory Act, establishes a “safe harbor” from fraudulent misrepresentation penalties for a small business that obtains an advisory size opinion from a SBDC or PTAC. But the proposed rule acknowledges that SBDCs and PTACs are not required to provide such advisory opinions–and that new funding will not be awarded for this purpose.

Proposal Re-Evaluation: Protester’s Scores Could Be Lower Than In Original Evaluation

Posted on July 1, 2014 by Steven Koprince

When a procuring agency re-evaluates proposals in response to a protest, the agency need not stick with the results of the original evaluation.

As demonstrated in a recent GAO bid protest decision, when an agency re-evaluates proposals, it is expected that the re-evaluation could result in different findings and conclusions–including new conclusions that are not favorable to the protester.