Federal Court: Small Business Set-Aside Threshold “Purposefully Low”

The FAR’s threshold for meeting the so-called “Rule of Two” for small business set-asides is “purposefully low,” according to a recent decision of the U.S. Court of Federal Claims.

In Adams & Associates, Inc. v. The United States, No. 12-731C (2013), the Court rejected a challenge to a small business set-aside, holding in part that a contracting officer need not conduct a thorough responsibility evaluation of prospective small business offerors before issuing a set-aside.

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VA Refuses To Issue Set-Aside Based On Prospective Offerors’ Experience, Resources

In a troubling case, the VA recently refused to issue a small business set-aside because responses to a Request for Information indicated that prospective small business offerors lacked similar experience with the VA, and did not currently have available the personnel, equipment and facilities necessary to perform the contract.

The GAO, ignoring the recommendation of the SBA, affirmed the VA’s decision to forego a small business set-aside.

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Contractor Improperly Downgraded for Lack of Agency-Specific Experience, Says GAO

A contractor bidding on a U.S. Department of State contract was improperly downgraded for failing to possess direct experience working with DOS, according to a recent GAO bid protest decision.

The GAO’s decision in Exelis Systems Corporation B-407111; B-407111.2; B-407111.3; B-407111.4 (Nov. 13, 2012) is notable because it is not unusual for procuring agencies to consider agency-specific experience as part of a past performance and/or experience evaluation.  According to Exelis Systems Corporation, such considerations may be deemed improper, unless they are spelled out in (or can be reasonably inferred from) the solicitation.

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WOSB Downgraded for Reliance on Teammate’s Experience

Small government contractors often rely on teammates and subcontractors to demonstrate relevant experience.  But as one recently-published GAO bid protest decision shows, some procuring agencies may take a dim view of such reliance.

In Quasars, Inc., B-405747 (Dec. 7, 2011), the agency found that a woman-owned small business’s reliance on a teammate for relevant experience was risky, because that teammate might leave, depriving the team of the necessary expertise.  The GAO found nothing unreasonable in the agency’s evaluation.

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GAO: Contractor Cannot Claim “Experience” From Novated Contract

Michael Jackson famously bought the publishing rights to most of the Beatles’ songs, but purchasing the Beatles’ music didn’t mean that Jackson could claim to have appeared on the Ed Sullivan Show in 1964.

As the GAO recently held, a similar principle applies in government contracting: simply buying another company’s government contract does not necessarily entitle the new contractor to lay claim to the other company’s experience.

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