VA SDVOSB “Rule of Two”: Contracting Officer’s Price Reasonableness Determination Need Not Defer to FSS

The VA’s “rule of two” for service-disabled veteran-owned small businesses provides a powerful contracting preference. Thanks to the rule of two, the VA awarded 23.39% of prime contracting dollars to SDVOSBs in Fiscal Year 2019, compared to 4.39% governmentwide.

But the rule of two has its limits. Importantly, before issuing an SDVOSB set-aside, the Contracting Officer must have a reasonable belief that “the award can be made at a fair and reasonable price that offers best value to the United States.” And, as a powerful federal court recently held, the fact that an SDVOSB’s prices have been accepted by the GSA under the Federal Supply Schedule program does not require the VA to accept those prices as fair and reasonable in a rule of two analysis.

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Federal Supply Schedule Acquisitions Require Price Comparisons to Determine Lowest Overall Cost, Says GAO

In a recent protest, GAO examined the rules for price evaluation and source selection methodology required under the Federal Supply Schedule (FSS) Program. At a minimum, an agency must perform price comparisons to evaluate what vendor will be lowest cost along with any additional features and benefits to the government. Because the FSS solicitation at issue failed to include proper price evaluation terms, GAO sustained a challenge to those terms.

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GSA On Track to Release Consolidated MAS Program Schedule On First of October

This week, GSA announced it is on track to debut its Consolidated Multiple Acquisition Schedule (MAS) Program Schedule Solicitation on October 1. GSA also gave federal contractors planning to bid on the MAS a head start on the process by releasing a final draft solicitation and an updated industry FAQs sheet.

Let’s take a look at how to utilize this opportunity to prepare for the solicitation’s long-awaited debut.

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GSA Announces Plans to Consolidate MAS Contracts and Asks for Industry Feedback

The General Services Administration is conducting market research for its planned consolidation of the Multiple Award Schedule (MAS) Program. Earlier this month, GSA publicly announced the new single solicitation format, including streamlined terms and conditions, and its intention to collect feedback from government contractors in the industry.

According to GSA, the consolidation is part of its two-year modernization process for the program that began in November of 2018. The consolidated MAS solicitation is scheduled for release later this year. And if you have concerns or suggestions for GSA on this significant consolidation, there is still time for your input.

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GAO: Federal Supply Schedule Shorter in Duration than Blanket Purchase Agreement Spells Doom for Protester

Many GAO protests can hinge on fairly minute details that render a proposal unacceptable. A recent GAO case is a reminder that a contractor’s GSA Federal Supply Schedule must have sufficient duration to cover the period of performance for a blanket purchase agreement or the contractor may be ineligible for award.

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Agencies May Evaluate Contractor Responsibility under FSS Orders, Says GAO

Contractor responsibility is to be considered before every federal contract award, but what about task orders issued under an FSS contract? Are contractors still subject to responsibility inquiries when competing for orders?

According to GAO, the answer is, “yes.”

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Bundling Didn’t Allow Agency to Purchase FSS Open Market Items, GAO Says

An agency cannot buy “Open Market” items from a Federal Supply Schedule vendor when the same items are readily available under another vendor’s FSS contract–even if the vendor selling Open Market items offers them as a discounted bundle and the FSS vendor does not.

In a recent decision, GAO held that it was improper for an agency to buy bundled software packages as Open Market items when another vendor sold the same licenses on its FSS contract as four separate items.

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