Compensation for Professional Employees and You: GAO Sustains Where Agency Doesn’t Explain Why Proposed Decreased Compensation is Reasonable

While the federal government uses wage determinations for many occupations that contractors must abide by, things are different with professional occupations such as physicians, accountants, engineers, and (yours truly) attorneys. Contractors generally have more leeway with regard to how they pay their professional employees on a given contract. But it’s not unlimited. This is something that the National Oceanic and Atmospheric Administration (NOAA) didn’t address in its evaluation for a procurement, resulting in a successful GAO protest. In this post, we’ll look at the rules here and what went wrong.

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Showing Your Work: Protest of Evaluation Sustained for Lack of Explanation by Agency

We at SmallGovCon have explored some examples of protests where an unfortunate oversight by a contractor has been the difference between winning and losing. This, of course, can be very frustrating to contractors, especially considering that federal agencies often get leeway where contractors wouldn’t. But federal agencies, too, make mistakes, and even simple ones can be enough for a successful protest. This was the case in a January 2023 decision by GAO.

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GAO Sustains Protest, Reminds Government It Must Show Its Work

If a teacher has told you once, they’ve told you a thousand times, show your work.  That was GAO’s reminder to GSA in its decision in Hoover Properties, B-418844 (Sept. 28, 2020).  In the case, GAO sustained a protest from property management company Hoover Properties, the non-awardee of a GSA request for lease proposal (RLP), in which Hoover argued that GSA failed to provide adequate documentation for its evaluation.

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In Recent Decision, GAO Finds Agency Documentation Lacking

When choosing the most appropriate awardee for any federal contract, agencies are required to fully document all procurement decisions and their rationale, especially when those decisions could narrow the competition.

In Soft Tech Consulting, Inc., B-416934 (Comp. Gen. Feb. 1, 2019), GAO held that the Department of Homeland Security failed to adequately document its evaluation decision in a procurement for software development services and recommended that DHA reevaluate all offers from square one.

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