GAO Report: Agencies Need to Improve Data on Construction Contract Changes

Many federal construction contractors know that contract changes can be frustrating business. Changes can be unilateral or bilateral. They can stress a contractor’s finances. They can delay the overall project. And they can result in animosity between the agency and a contractor.

Fortunately, GAO has shined some light on the problems in the contract change process. Indeed, in a recent report, GAO concluded that agencies, particularly the Army Corps of Engineers and GSA, need to develop better systems to collect data about changes in construction contracts.

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Missing Password Doesn’t Sink CIO-SP3 Proposal

A Maryland contractor nearly lost a contract with $20 billion ceiling because of a password protected encrypted document.

After much back and forth, and for somewhat obscure reasons, GAO said that it was unreasonable for the agency to ask for the password and then not use it.

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GAO Allows Contracting Officer Discretion to Act as Tie-Breaker

Your company has submitted a proposal for a Lowest-Priced, Technically Acceptable acquisition. To your surprise, you find out another company has submitted a technically acceptable offer with the same price. Equally surprising, the solicitation does not contain any provisions instructing the agency on how to pick from otherwise equal bids. So what is the contracting officer to do – issue an order for a standoff, a la the O.K. Corral? (For the record, we do not advise this as a viable method of conflict resolution.)

Fortunately, GAO encourages a less drastic solution–use of the contracting officer’s reasonable discretion.

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Don’t Forget the Email Attachment—Protest Denied

A protester recently lost an effort to get an agency to consider a late proposal arguing that it was emailed to the agency on the due date.

Even though the quote would have been less expensive than the awardee’s and this was a lowest-price technically-acceptable procurement, GAO denied the protest finding that the email was a few hours late and did not include the attached quotation.

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GAO: Agencies Can’t Blindly Rely on Adjectival Ratings to Make Award Decisions

In evaluating proposals, an agency will sometimes use “adjectival ratings” (e.g., Excellent, Good, Acceptable) to describe its assessment of a proposal or portions of a proposal. But, importantly, an agency cannot evade its responsibility to reasonably evaluate proposals–based on the articulated evaluation criteria–by deferring solely to the assigned adjectival ratings.

In other words, if the agency doesn’t perform a true qualitative assessment, but instead relies on mere labels to make its ultimate award decision, GAO will likely slap the agency’s hand.

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Inconsistency Killed the Cat: GAO Sustains Protest Where Agency Inconsistently Evaluated Proposal

GAO generally defers to an agency’s judgment when it comes to the evaluation of proposals. This deference flags, however, when an agency evaluates competing proposals inconsistently; or, in other words, treats offerors disparately.

Let’s take a look at how GAO, in a recently sustained protest, found that the agency’s evaluation was unreasonable.

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