A catch-22 is an impossible, no-win situation where you are caught between two conflicting requirements, and complying with one makes it impossible to comply with the other. When a bid protest turns on whether an agency’s instructions were clear or whether a contractor was put in a catch-22, the solicitation is often the best place to look for the answer. However, a recent GAO decision illustrates that not every difficult or unfavorable outcome constitutes a catch-22, and that sometimes the answer to a contractor’s problems is right in front of them.
Continue readingTag Archives: bids and proposals
GAO Says: Solicitation + Q&A = Material Requirements
Recently, GAO sustained a bid protest, finding that the awardee did not meet the material requirements of the solicitation. The GAO held that the requirements of the solicitation included an agency’s answer during the question and answer (Q&A) period.
Continue readingExtraordinary Actions v. Day-to-Day Decisions for Joint Ventures: A Cautionary Tale
Back in 2020, we discussed an SBA Office of Hearings and Appeals (OHA) decision stating that the managing venturer must control every aspect of the joint venture. This position, which we questioned in that article, has changed since that time, and we explored the changes to the regulatory language in question not long thereafter. But this regulatory language was still vague. Since that time, there has been much case law development. The Court of Federal Claims (COFC) held in 2022, “[a] minority owner’s control over “extraordinary” actions, such as actions intended to protect the investment of minority shareholders, will not result in a finding of negative control” and applied this idea to a populated joint venture. Swift & Staley, Inc. v. United States, No. 21-1279, 2022 WL 1231428 (Fed. Cl. Mar. 31, 2022), aff’d, No. 2022-1601, 2022 WL 17576348 (Fed. Cir. Dec. 12, 2022). It now appears, fairly established at this point, that non-managing venturers can have a say in what can best be described as “extraordinary actions.” These are the sorts of decisions that can completely change the trajectory of the joint venture. But contractors must still be very careful in giving the non-managing venturer a say in the joint venture’s decisions. As one firm learned the hard way in a recent COFC case, a joint venture with too many actions controllable by the non-managing venturer may end up ineligible for set-asides. Here, we explore this decision.
Continue readingInadvertent Release of Incumbent Pricing Data Leads to Sustained Protest
Protecting sensitive business information, especially pricing, is essential even in the GAO bid protest realm. As an agency found out, even an inadvertent release of such information could lead to a sustained protest.
This slip up resulted in the cancellation of a nearly $1 billion contract. Needless to say, this was a big deal. How did this happen, and what should parties be looking for to protect their confidential data?
Continue readingSolicitation Omits NAICS Code and Size Standard–But Agency Still Rejects Large Business’s Bid
An offeror’s bid was rejected because the offeror wasn’t a small business–even though the solicitation didn’t contain a NAICS code or corresponding size standard.
It sounds like a successful bid protest waiting to happen, but GAO didn’t see it that way. Instead, GAO dismissed the protest because the offeror should have protested the defective solicitation terms before it submitted its bid, instead of waiting to see how the competition played out.
Continue readingLimitations on Subcontracting: Compliance Presumed Unless Proposal Clearly Shows Otherwise
America’s criminal justice system is founded on the principle that a defendant is innocent until proven guilty. And when it comes to compliance with the limitations on subcontracting, a similar principle applies.
In a recent bid protest decision, the GAO confirmed that a small business’s proposal does not need to affirmatively demonstrate compliance with the “LoS.” Instead, compliance is presumed, unless the proposal “on its face” should lead the procuring agency to conclude that the small business will not comply.
Continue readingContractor’s Creative Staffing Proposal Leads to Elimination from Competition
In the competitive federal marketplace, businesses are always looking for ways to make their proposals more competitive. With millions of dollars at stake, it is no surprise that some competitors develop clever approaches to give their proposal a competitive edge.
As one competitor recently discovered, however, there is a point where an offer can get too clever, which may result in proposal elimination. Especially when an agency views the clever approach as violating a solicitation staffing requirement.
Continue reading