GAO Upholds Contract Award to Company Owned By Government Employee

The GAO has upheld an agency’s award of a contract to a firm owned by a current Government employee.

In a recent bid protest decision, the GAO ruled that the Contracting Officer did not “knowingly” make the award in violation of the FAR because he was not aware of the owner’s employment status.  The GAO’s decision begs the question: with contractors required to submit so many representations and certifications, why is it permissible for a contractor to withhold the fact that it is owned or controlled by a current government employee?

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Unbalanced Pricing: Agency Properly Excluded Contractor, Says GAO

Unbalanced pricing can justify the exclusion of a contractor’s proposal, even if the contractor alleges that the pricing represents its actual cost structure.

As demonstrated in a recent GAO bid protest decision, an agency is justified in rejecting a proposal on the basis of unbalanced pricing when the agency reasonably concludes that the unbalanced pricing poses an unacceptable risk to the government.

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SmallGovCon Week In Review: October 7-11, 2013

As the shutdown marches on, many contractors are beginning to feel the effects, in the form of suspension notices, unanswered calls to agency officials, and concerns about delays in processing payments, claims, protests, and more.

In this week’s SmallGovCon Week In Review, more on the effects of the shutdown on small contractors, as well as some “non-shutdown” news and commentary you may have missed.

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Task Order Procurement Decision Not Protestable, Says Federal Court

The U.S. Court of Federal Claims lacks jurisdiction to hear a challenge to an agency’s decision to procure services by way of a task-order competition under a government-wide acquisition contract.

In MORI Associates, Inc., No. 13-671C (2013), the Court held that it lacked authority to consider whether an agency’s decision to procure services by way of a task order competition under a GWAC–rather than under the GSA Schedule–was improper.

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Agency Erred By Not Clarifying Clerical Error, Says Federal Court

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

In BCPeabody Construction Services, Inc., No. 13-378C (2013), the Court held that although procuring agencies have discretion as to whether to clarify clerical mistakes, that discretion is not unlimited–and that failing to clarify an obvious mistake may be an abuse of discretion.  It’s a ruling that should be cheered by small government contractors.

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SmallGovCon Week In Review: Sept. 30 – Oct. 4, 2013

The shutdown dominated government contracts headlines this week, and rightfully so.

This week’s SmallGovCon Week In Review features plenty of shutdown coverage, including several pieces focusing on small businesses.  But the week’s government contracts news and commentary also included a welcome drop in wait times for VA SDVOSB applications, Guy Timberlake’s insights on government spending through procurement vehicles versus standalone contracts, and more.

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Service-Disabled Veteran “Controlled” SDVOSB With 79% Ownership, Says SBA OHA

A service-disabled veteran, who owned 80% of this business and served as its highest officer, “controlled” the company within the meaning of the SBA’s SDVOSB regulations, according to a recent decision of the SBA Office of Hearings and Appeals.

SBA OHA’s commonsense decision overturned an earlier SBA determination that the veteran’s majority ownership and officer position did not amount to “control.”

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