Tag Archives: rule of two

GAO: VA Must Prioritize SDVOSBs for Simplified Acquisitions

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The U.S. Department of Veterans Affairs’ award of a contract to a small business under simplified acquisition procedures was improper because it appeared that a number of service-disabled veteran-owned small businesses could have filed the requirement, according to a recent GAO bid protest decision.

Unlike the ongoing Aldevra cases, in which the VA has purposefully continued making awards to non-SDVOSBs under the Federal Supply Schedule in the face of repeated GAO decisions stating that the practice is illegal, the GAO’s decision in Phoenix Environmental Design, Inc., B-407104 (Oct. 26, 2012), suggests that the VA simply did not understand how the agency’s own set-aside rules are supposed to work, at least in the context of a simplified acquisition.

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GAO: Agencies Must Consider SDVOSB Set-Asides Before Issuing Small Business Set-Aside RFPs

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One day back when I was in fourth grade, my teacher informed our class that Thomas Jefferson had never been a United States president.  I marched to the back of the classroom, pulled out the Encyclopedia Britannica, and quickly proved that Mr. Jefferson had, in fact, served in our nation’s highest office, leading to a chorus of laughter among the fourth graders of Winship Elementary.  After all, it’s rather amusing to find out that the person in charge got it wrong.  (No wonder my teacher never liked me very much after that stunt).

In a recent GAO bid protest decision, both the procuring agency and the SBA initially got it wrong, too, by erroneously relying on outdated regulations to argue that the agency need not consider a SDVOSB set-aside before awarding a small business set-aside contract.  Fortunately for SDVOSBs, the GAO set matters straight.

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It Takes Two: GAO Sustains Set-Aside Protest

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It Takes Two is the name of a 1995 film starring Kirstie Alley, Steve Guttenberg, and the Olsen twins.  With such a star-studded cast, I’m at a loss for why the film merits only a 5.1 rating from the harsh critics at IMDb.  I am far too busy to investigate this apparent injustice by screening the film myself.  However, “it takes two” is worth keeping in mind, because it sums up one of the most important rules for small government contractors.

Under the FAR, agencies are typically required to set-aside procurements exceeding $150,000 for small businesses if there is a reasonable expectation that at least two responsible small businesses will submit offers at fair market prices.  When an agency fails to conduct adequate market research to determine whether the “rule of two” can be met, the GAO will sustain a bid protest, as was the case in DNO Inc., B-406256, B-406256.2 (Mar. 22, 2012).

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