December 30 |
In Size Appeal of eSens Inc.,
the SBA's OHA held that: (i) the Area Office erred in finding affiliation by
common management because the challenged individual did not attain Chief
Operating Officer
status until after the date when size was to be determined and
demonstrated that her limited responsibilities as Chief
Financial Officer did not confer the ability to
control the firm; (ii) the fact that one allegedly affiliated
firm appointed five of eleven directors to a Board did not confer
power to control the Board when the remaining six directors were elected by
the entire Board and could not include any directors associated with the
allegedly affiliated firm; and (iii) the Area Office erred in several factual
findings purportedly supporting its finding of affiliation through
the totality of the circumstances and also failed to describe how its findings
amounted to the ability of one entity to control the other.
FAR Case 2019-017: Effective January 3, 2025, a
final rule amends the FAR to
implement a section of the Frederick
Douglass Trafficking Victims Prevention
and Protection Reauthorization Act of
2018, which requires that domestic
carriers who contract with the Federal
Government to provide air
transportation must submit an annual
report with certain information related
to prevention of human trafficking. In
A Best Services Inc., the ASBCA dismissed
five of the claims included in the appellant's Complaint because they had not previously been submitted to
the Contracting Officer for a decision.
|
December 27 |
In In Re: Sec'y of the Army, the Court of Appeals for the Federal Circuit held that in
CKY, Inc., the ASBCA had used the wrong test in determining the
Government's litigation position was not substantially justified for purposes of
an EAJA application because a reviewing forum cannot categorically
restrict its inquiry to exclude (i) the agency's actions that gave
rise to the litigation and (ii) all claims involved in the litigation
except those on which the EAJA applicant prevailed. The CAFC remanded
the case for further consideration consistent with its
ruling.
|
December 24 |
ATP Gove, LLC
won its GAO protest because the awardee's proposed product was not
fully certified at the time of proposal submission, in violation of
a solicitation requirement.
In Size Appeal of Mission
Analytics, LLC, the SBA's OHA held that the Area Office correctly dismissed
a protest
(as non-specific) because, contrary to the protester's only complaint,
a solicitation primarily for services does not require compliance with the nonmanufacturer rule. |
December 22 |
The SBA proposes to revise
its Small Business Subcontracting
Program regulations to encourage faster
payments to small business
subcontractors and streamline the
reporting process for prime contracts, by requiring prime
contractors (a) to notify contracting officers in
writing when they fail to make full or
timely payments to a subcontractor
within 30 days past due and (b) to cooperate with contracting
officers to correct/mitigate such failures
until payment is made in full to the
subcontractor. Moreover, contracting
officers would be able to modify a prime contractor’s
past performance evaluation for failure to make full
or timely payments. Comments are due by February 18, 2025. |
December 20 |
In Joint Venture WMV Brussels American School,
the ASBCA dismissed an appeal because (due to a subsequently submitted REA) resolving
the appeal of the original, uncertified claim for
contract interpretation would necessarily involve a monetary issue well
in excess of $100,000.
In
Chugach Range and Facilities Services JV,
LLC, an unsuccessful post-award
protest, the Court of Federal Claims held that: (i) advising the protester that its response to
a discussion question
was acceptable provided it updated its proposal did not
mislead the protester into believing nothing more was required; (ii)
the agency's
request during discussions that appellant supply "supporting
documentation" in a certain area was consistent with the agency's later
finding that the plaintiff had not supplied "additional information";
and (iii) there were rational bases for the agency's evaluations of
the plaintiff's technical
proposal (faulting it generally for being insufficiently specific) and
price (in this latter case, any error would have not have been
prejudicial, in any event, given the flaws in the
protester's technical proposal). |
December 19 |
In
Caring Hearts EMS, Inc., the CBCA held it lacked
jurisdiction over allegations in the Complaint that were not part of
the original claim submitted to the Contracting Officer, even though the parties
had previously discussed those issues: "The certified claim here did not notify VA that
[the contractor] sought any money
relating to van use or an unsettled schedule. Evidence that the parties had discussed those
matters does not alter the claim."
The Board reached a similar conclusion in
West Point Engineers: Appellant’s claim argued that the construction cost estimate for the statement of work
had been negligently prepared and requested that the fixed fee rate specified in the contract
be increased. . . . In contrast, the appeal raises two different arguments
that merited an increase to the value of the contract: (1) the modified scope of work required
increased design effort in preparing drawings, and (2) the modified scope of work required
a greater number of drawings as compared to what appellant anticipated based on the original
cost estimate. . . . On this record, we find that the arguments and relief
sought in the claim are different than those in the appeal.
In
Acabay Inc., the CBCA held it lacked jurisdiction over
an appeal received by the Board more than 90 days after the appellant's receipt of
the Contracting Officer's decision where, absent a post mark on the letter,
appellant failed to prove it had mailed the letter within the 90 day time
limit. |
December 18 |
I'm catching up a bit. In
John Douglas Burke, the Court of Appeals for the Federal Circuit affirmed
the
prior decision of the CBCA dismissing an appeal because the appellant failed
to plausibly allege he held personal services contracts with the
agency since the agency did not have the direct supervision of his
work necessary to create an employer/employee relationship.
In Holtec Palisades, LLC,
the Court of Federal Claims held that the contractor
was entitled to summary judgment for well-documented and reasonably foreseeable security costs and
fuel storage costs at two spent nuclear fuel storage facilities where the
Government breached its contractual obligation to store the fuel and
where the Government's defense depended mainly on issues
that had been decided against it previously.
DFARS Case 2019-D043: Effective January 17, 2025, a
final rule amends the DFARS to implement the data rights
portions of the Small Business
Innovation Research Program and Small
Business Technology Transfer Program
Policy Directives.
DFARS Case 2023-D007: A final rule amends the
DFARS to to implement section 802 of
the NDAA for FY 2023, which amends 10 U.S.C.
3406 and adds a requirement
at 10 U.S.C. 3406(h)(1) for DoD
contracting officers to use qualification-based selections when awarding task
orders and delivery orders for
A&E
services in accordance with FAR subpart
36.6 and 40 U.S.C. chapter 11 (The
Brooks Act). Section
802 also adds, at 10 U.S.C. 3406(h)(2), a direction that prevents contracting
officers from routinely requesting
additional information regarding
qualifications when awarding task
orders or delivery orders under a
multiple-award contract. |
December 17 |
In
Anchorage, A Municipal Corp., the Court of Appeals for the Federal
Circuit vacated a portion of the
prior CoFC decision that a 2003 Memorandum of Understanding required
the Government to deliver a defect-free port to the city of Anchorage because nothing in
the Memorandum obligated the Government to deliver anything:
[W]e find no
language that could be read to create a duty for MARAD to
deliver any completed item of construction. Nothing states
what specifically is to be built, where, or with what
dimensions. Nothing identifies a deadline for delivery, or
any binding timeline for any part of the project. Nothing
identifies the cost for what MARAD is ostensibly delivering
to Anchorage. Consistent with the 2003 Memorandum’s
plain language, Cheryl Coppe, a former Anchorage official
and one of the primary drafters of the 2003 Memorandum,
. . . testified that the 2003 Memorandum did not
define any particular project structure to be built or any
price, and that the decision of what was going to be built
had not yet been made when the 2003 Memorandum was executed.
. . . The absence of any
of these terms demonstrates that MARAD did not
contractually promise to construct a port structure or to
assure that one would be built through the 2003
Memorandum. The court, however, affirmed the CoFC's determination that the United States breached
a 2011
Memorandum of Agreement by settling subcontractor
claims without coordinating with the city.
In
eSimplicity, Inc., the CAFC dismissed the Government's appeal of a prior
CoFC decision in favor of the protester as moot because the Government
had, in the interim, issued an amended solicitation, re-opened the competition, and
awarded a contract to the original protester.
In
Philips Lighting North American Corp., a follow-on to a
prior ASBCA decision regarding a contract to upgrade and replace lighting
fixtures with energy-efficient LED technologies and install
state-of-the art electricity metering equipment in 25 parking garages,
the ASBCA held that: (i) the contract's
payment provision contemplated reduced payments when the energy savings from
the newly-installed lights were less than the guaranteed energy savings
in the contract; (ii) factual
disputes precluded summary judgment on the contractor's claim that
the Government had breached the implied duty of good faith and fair dealing;
and (iii) the Government's claim for a sum certain of liquidated damages
for delay was
a claim rather than an affirmative defense and, therefore, must be
dismissed because it
was not first submitted to the Contracting Officer for a decision.
Effective January 16, 2025, the SBA is
amending its regulations governing the HUBZone
Program to clarify certain policies. In particular, the rule
requires any certified HUBZone small
business to be eligible as of the date of
offer for any HUBZone contract. The
rule also makes several changes to
SBA’s size and 8(a) Business
Development (BD) regulations, as well
as some technical changes to the
WOSB and VetCert programs, particularly by deleting the program
specific recertification requirements
contained separately in SBA’s size, 8(a)
BD, HUBZone, WOSB, and VetCert regulations and
moving them to a new section that covers all size and status recertification
requirements, in order to ensure that
the size and status requirements will be
uniformly applied. |
December 14 |
Federal Acquisition Circular (FAC)
2025-02 has been published and includes the following
two items plus technical amendments:
FAR Case 2019-017: Effective January 3, 2025, a final
rule amends the FAR to to implement a section of the
Frederick Douglass Trafficking Victims Prevention and
Protection Reauthorization Act of 2018, which requires that
domestic carriers who contract with the federal government
to provide air transportation must submit an annual report
with certain information related to prevention of human
trafficking.
FAR Case 2022-009: A final rule adopts, without change,
the prior interim rule amending the FAR to to implement the
final rules published by the SBA to implement sections of
the NDAAs for FY 2021 and 2022.
In
Meltech Corp., the ASBCA denied the contractor's motion for summary judgment on its superior knowledge claim because of disputed facts as to: (i) the Government's alleged knowledge prior to award that it lacked as-built drawings; (ii) whether, absent the as-built drawings, destructive testing was the only method that could be used to determine the actual strength of the existing structural concrete; and (iii)
whether the Government knew from prior testing results that
certain concrete in a building was likely below the required
strength. In H&L Contracting LLC,
the ASBCA denied cross motions for summary judgment because of disputed facts as to
superior knowledge, defective specifications, mutual mistake of fact
claims. |
December 13 |
In
IgniteAction JV, LLC, a successful request for a
preliminary injunction, the Court of Federal Claims held
that, during the pendency of bid protests, the agency could
not add services (currently being handled on a bridge
contract) to a firm's FSS contract task order because the
services were outside the scope of the task order, and it
could not be modified to add services not offered in the
underlying FSS contract. The court also denied the
Government's request for a bond from the plaintiff because
it was based on a purely speculative calculation. |
December 12 |
After having already sustained prior protests by the same
protester on the same procurement, the GAO sustained yet
another protest by
Spatial Front, Inc., largely for the same reasons as the
prior protests, finding that, for a task order under an FSS
contract, the agency had unreasonably determined the
solicited services were within the scope of the labor
categories quoted by the awardee and had improperly
overlooked the quotation’s failure to comply with a material
solicitation requirement. After each prior successful
protest, the agency had gone back and tried to re-do its
analysis of the suitability of the awardee's quotation.
Basically, the agency just doesn't want to award the
contract to the protester, but the GAO is not buying any of
the agency's rationales for its award decisions. |
December 11 |
In
R&R Connor Aviation L.L.C., dba R&R Conner Helicopters,
the Court of Federal Claims dismissed a suit under rule
12(b)(6) for failure to state a claim because the
plaintiff/subcontractor did not establish it was a third
party beneficiary of the prime contract merely because the
Government had significant oversight of the subcontractor's
work and, at times, communicated directly with the
subcontractor. |
December 9 |
In
ELA Group, Inc., the CBCA held that the contractor's
letter to the Contracting Officer referring to an attached
"proposal" for delay costs it had allegedly incurred and
submitted pursuant to "Article G.14 Equitable Adjustment"
(which the Board held was usually associated with REAs
related to future changes) was a claim (even though the
contractor subsequently submitted a clear "claim" for the
same costs) because, based on the objective tests required
by the CAFC in
Zafer Constr. Co., the contractor's letter included:
(i) "a clear and unequivocal statement" that gave the
Contracting Officer "adequate notice of the basis and amount
of the claim" and (ii) language that constituted an
"implicit" request for a final decision: "[the contractor]
is entitled to receiver [sic]" the identified delay costs.
In
Alan E. Fricke Memorials, Inc., the CBCA held it lacked
jurisdiction over a settlement proposal submitted by the
contractor after prior board decision converting a default
termination to a T for C because the proposal exceeded
$100,00 but contained no certification language.
In
Melwood Horticultural Training Center, Inc., which
involved a contract for custodial services at a GSA
building, the CBCA held that the plain language of FAR
52.222-43 ("Fair Labor Standards Act and Service Contract
Act – Price Adjustment (Multiple Year and Option
Contracts)"), as recognized in a recently updated GSA policy
memo, required the contractor to use its actual incurred
costs of the prior option year in calculating the price
adjustment due to updated wage and fringe benefits for the
fourth option year, even though the parties (apparently
erroneously) had used the number of direct labor hours
listed in the contract in calculating the price adjustments
for the prior option years.
Effective January 3,
2025, a final rule amends the SBA's
Women-Owned Small Business (WOSB) federal contracting
program by, inter alia, adding definitions that are
not currently included in the regulations and conforming the
regulations to current statutes that have not yet been
integrated. The rule also adopts similar language to that
used in SBA’s other government contracting program
regulations regarding (a) requirements for the qualifying
individual’s control of an applicant concern and (b) limits
on outside employment and makes changes to the process by
which the SBA reviews an application for certification in
order to implement a statutory amendment from the NDAA for
FY 2022 regarding the effects of a status determination on a
small business concern. |
December 6 |
In
Prime Physicians, PLLC, the Court of Federal Claims held
that, under FASA, the court lacked jurisdiction over a suit
by the original task order awardee seeking to enjoin
corrective action undertaken as a result of a successful GAO
protest of a task order award because the suit was "in
connection with" the task order award. For the same reason,
in
Radiance Technologies Inc., the court held that it lacked
jurisdiction over a suit by the holder of an OASIS II IDIQ
contract challenging the insertion of a requirement in a
solicitation for a task order award under that contract that
offerors recertify as small businesses. |
December 5 |
In
AccelGov LLC, an unsuccessful post-award protest, the
Court of Federal Claims held that: (i) the solicitation's
requirement that a neutral rating be used when an offeror
provided no recent or relevant history did not apply where
the agency only had questions about the relevancy of a past
performance reference, and the agency properly downgraded
its Confidence rating due to the lack of details in the
reference; (ii) even if the agency were incorrect in
questioning the relevance of the experience of one member of
the protester because that experience was based on a
different JV, the protester could not establish prejudice
because correcting that minor nit would not have changed the
protester's overall evaluation sufficiently to have changed
the result; (iv) faulting the protester's proposal for a
lack of innovation and forward thinking had a rational basis
and was not the result of the use of an unstated evaluation
criterion (even though one of those terms was only used once
in the solicitation, and the other, not at all) because,
reading the solicitation as a whole, the evaluation fell
well within the reasonable scope of the stated evaluation
criteria; and (iv) there was no prejudice from the agency's
reference to typographical errors found in the plaintiff's
proposal because there was no evidence it had affected the
evaluators' scores or that it was considered at all in the
final best-value determination.
In
Advanced Technology Systems Co., an unsuccessful preaward
protest, the court held that in an FMS sale to Egypt, where
Egypt withdrew its request for a sole-source procurement
(with the plaintiff as that sole source), the court lacked
authority to order Egypt to change back to a sole-source
procurement, and the plaintiff's only remedy for the
allegededly improper disclosure of its proprietary data in
the originally sole-source solicitation was the reasonable
monetary compensation for the disclosure.
In
Legacy Corp. of Illinois, an unsuccessful post-award
protest, the court held that: (i) the agency could base its
initial nonresponsibility determination on (a) cure and show
cause letters the affected firm had received even if the
contract had never been terminated and (b) negative
performance information even if no formal CPAR had been
issued, where all the information came from the performance
of a contract that had been "completed" within the past six
years (even though the information had been generated more
than six years in the past); (ii) in these circumstances,
referral of this nonresponsibility finding to the SBA was
required; (iii) the SBA could consider the same information
used by the agency; and (iv) there was a rational basis for
SBA's final 3-person panel to find the firm was
nonresponsible by a simple majority vote, even though the
initial report by the SBA's industrial specialist had
recommended the issuance of a CoC. |
December 4 |
In
NAICS Appeal of MissionAnalytics, LLC, the
SBA's OHA held that in a solicitation for external security
cameras at a VA medical facility, the Contracting Officer's
choice of NAICS-236220 ("Commercial and Institutional
Building Construction") was incorrect because the
solicitation was not one for construction, but NAICS 334220
("Radio and Television Broadcasting and Wireless
Communications Equipment Manufacturing") was preferable to
the appellant's choices of either NAICS-334290 ("Other
Communications Equipment Manufacturing") or NAICS-541519
("Other Computer Related Services"). |
December 3 |
In
VSBC Appeal of MaxIt Corp., the SBA's OHA
upheld the denial of a firm's certification as a VOSB
because the firm's Bylaws gave negative control of the
concern to the non-veteran Director, and a late amendment to
the Bylaws did not eliminate (i) the supermajority
requirement for removal of a Director and (ii) the
objectionable provisions on establishing a quorum and
requiring a majority vote for action by the Board.
In VSBC Appeal of
Black Cultural Initiative LLC, the OHA upheld the
denial of a firm's certification as a VOSB because the
documentation provided by the firm originally and on appeal
was contradictory, making it unclear whether the firm was
structured as a partnership or as an LLC, and if an LLC,
whether the firm was member-managed or manager-managed,
which prevented a determination that the veteran had the
requisite control.
In VSBC
Protest of United States Coast Guard, the OHA
upheld the protest of a firm's SDVOSB status because,
although it had applied for that status, its application had
been denied, and the firm had failed to appeal that denial. |
December 2 |
Effective December 26, a final rule amends the Homeland
Security Acquisition Regulation (HSAR) to remove provisions
prohibiting the award of certain federal contracts to
institutions of higher education that prohibit
ROTC units or military recruiting on campus because
these requirements are already covered in the FAR.
Also effective December 26, a final rule amends the
HSAR to clarify the application of
The Kissell Amendment (a section of the American
Recovery and Reinvestment Act of 2009) which requires, with
limited exceptions, that funds appropriated or otherwise
available to DHS may not be used for the procurement of
certain textiles, clothing and footwear, if that item is
directly related to the national security interests of the
United States (unless the item is grown, reprocessed,
reused, or produced in the United States). The rule also
clarifies the application of one of the exceptions to the
amendment, the so-called De Minimis Exception, which allows
the Secretary of Homeland Security to accept delivery of the
aforementioned textiles, clothing and footwear that contain
non-compliant fibers if the total value of non-compliant
fibers contained in the end item does not exceed 10 percent
of the total purchase price of the end item.
FAR Case 2024-001: A proposed rule would amend the FAR
to further implement 41 U.S.C. 1908, which requires an
adjustment every five years of statutory acquisition-related
thresholds for inflation. The adjustment uses the Consumer
Price Index for all urban consumers and does not apply to
the Davis-Bacon Act, Service Contract Labor Standards
statute, performance and payment bonds, and trade agreements
thresholds. The proposal would use the same methodology to
adjust nonstatutory FAR acquisition-related thresholds in
2025. Comments are due by January 28, 2025. |
November 29 |
The GAO sustained a protest by
DecisionPoint Corporation-f/k/a Emesec Inc., finding
that the agency had erred in determining a proposal was
ineligible for award due to the alleged lack of a required
certification held by the prime contractor performing the
work because the challenged firm had timely effected a
novation to merge with its parent company, which had the
required certification. |
November 26 |
In
Philip Emiabata, doing business as Philema Brothers, the
Court of Federal Claims held that: (i) the plaintiff's suit
alleging a wrongful termination of its Postal Service
contract was barred by res judicata because it had
already been decided twice by the CoFC (e.g.,
Emiabata 2) and twice affirmed by the CAFC (e.g.,
Emiabata 2022) and involved the same parties and
operative facts as the earlier case; (ii) the contractor
elected to appeal the Contracting Officer's 2021 decision on
its wrongful termination claim to the PSBCA, and that
election is binding; (iii) even if the election were not
binding, the current suit concerning that Contracting
Officer's decision is untimely; (iv) the court lacks
jurisdiction over an appeal of the PSBCA's decision, which
appeal must be brought at the CAFC; and (v) although the the
plaintiff's request to proceed
in forma pauperis is granted, the court certifies that any
appeal of this decision, itself, would be frivolous. |
November 25 |
The Court of Appeals for the Federal Circuit
vacated its
Percipient.ai decision and granted a motion for a
rehearing en banc limited to the question: "Who can be 'an
interested party objecting to . . . any alleged violation of
statute or regulation in connection with a procurement or a
proposed procurement' under 28 U.S.C. § 1491(b)(1)?" |
November 24 |
In
Size Appeal of
AHNTECH, Inc., the SBA's OHA held that the
allegation that the challenged firm (owned by an Indian
tribe) violated the ostensible subcontractor rule because it
had no revenue, only one employee, and had not independently
performed any contract within the last five years and,
therefore, was unduly reliant on its subcontractor was
sufficiently specific that the Area Office erred by not
investigating it. |
November 22 |
DFARS Case 2018-D074: Effective November 25, a final
rule amends the DFARS to implement paragraphs (b) and (c)
of section 849 of the NDAA for FY 2018 and section 837 of
the NDAA for FY 2019. Specifically, DFARS 212.371 is amended
to add the contract clauses at DFARS 252.204– 7012
("Safeguarding Covered Defense Information and Cyber
Incident Reporting") and 252.205–7000 ("Provision of
Information to Cooperative Agreement Holders") to the list
of solicitation provisions and contract clauses that are
inapplicable to contracts for the acquisition of COTS items.
DFARS 212.301 is amended to restore to the list of
provisions and clauses that apply to commercial products and
commercial services, the clause at DFARS 252.203–7005
("Representation Relating to Compensation of Former DoD
Officials").
DFARS Case 2024-D016: A final rule amends the DFARS to
implement section 865 of the NDAA for FY 2024, which
requires DoD contracting officers to consider relevant past
performance of affiliate companies of small business
concerns during the evaluation of past performance in
response to a competitive solicitation.
DFARS Case 2024-D026: A final rule amends the DFARS to
provide updates to the existing definition of "departments
and agencies" in order to provide updates to the list of
defense agencies in that definition.
DFARS Case 2018-D064: A proposed rule would amend the
DFARs to implement sections 1655(a) and (c) of the NDAA for
FY 2019. Section 1655(a) prohibits DoD from acquiring
products, services, or systems relating to information or
operational technology, cybersecurity, industrial control
systems, or weapon systems through a contract unless the
offeror or contractor provides disclosures related to
sharing source code and computer code with foreign
governments. Section 1655(c) requires contracts for those
products, services, or systems to include a clause requiring
the disclosures during the contract period of performance if
an entity becomes aware of information requiring disclosure.
Comments are due by January 14, 2025.
GSAR Case 2020–G512: Effective December 16, a final rule
amends the GSA's acquisition regulation (GSAR) to remove the
requirement for lease offerors to have an active SAM
registration when submitting offers and instead allow offers
up until the time of award to obtain an active registration. |
November 21 |
In
Soukos Robots Demil USA, Inc., the ASBCA dismissed an
appeal for failure to prosecute after the appellant's
outside, followed by its in-house, counsel withdrew, and
appellant failed to respond to several requests for
production of documents and then failed to respond to
various orders from the Board and a show cause notice.
In
Solpac Construction, Inc. dba Soltek Pacific Construction
Company, the ASBCA held that on a construction contract,
the contractor was not entitled to recover certain field
overhead costs because, pursuant to FAR 31.105(d)(3), the
contractor did not account for those costs consistently
throughout contract performance. Specifically, after
executing at least nine bilateral modifications to capture
job site overhead costs as a percentage markup (direct
costs), the contractor switched to a per diem rate for its
subcontractor (indirect costs).
In
Left Hand Design Corp., an appeal decided pursuant to Rule
11 procedures, the ASBCA held that pursuant to FAR
42.709-5(c), the contractor was not entitled to a waiver of
the penalty for expressly unallowable costs because: (i) at
the time the contractor submitted its indirect cost
proposal, it did not have established policies, personnel
training, and an internal control and review system to
ensure that unallowable costs were not included, but only
took such measures after the unallowable costs were
identified by the DCAA; and (ii) the unallowable costs were
not "inadvertently incorporated into the proposal due to an
unintentional error notwithstanding the exercise of due
care" because the contractor had not exercised due care to
identify them. The Board noted that the DCAA was not
obligated to teach the contractor that the costs were
unallowable.
In
Michael M. Tsontos SA Chania Sucursala Bucurest, the ASBCA
awarded a summary judgment to the contractor because, under
FAR 42.1502, the Contracting Officer had erroneously issued
CPARs to a Greek company rather than to its separate
Romanian "branch," which had actually performed the contract
work (even though the branch was not a separate legal
entity). |
November 20 |
In
Size Appeal of ZIN Technologies, Inc., the
SBA's OHA denied a protest of a firm's size, holding that:
(i) according to the 2022 revisions to 13 C.F.R. §
121.103(h), any size determination must include in the
calculation of the concern's size, its proportionate share
of the receipts or employees of any joint venture to which
it is a partner, whether that joint venture is populated or
unpopulated; (ii) although the Area Office erred in applying
the standard prior to this revision, the error was harmless
since the protested firm's size was within the applicable
size standard when its employees were counted the correct
way; and (iii) the protester's remaining arguments were
speculative, unsubstantiated, or raised for the first time
on appeal and, therefore, would not be considered.
Subsequently, the Court of Federal Claims cited the above
ZIN decision as part of its analysis denying a
post-award protest by
ZIN Technologies, Inc. Specifically, the court held that:
(i) the agency had properly investigated an alleged impaired
objectivity OCI by the awardee's major subcontractor and had
concluded it did not exist, and even if it did, an adequate
mitigation plan was in place; (ii) the awardee's plan to
hire one incumbent employee as a key personnel did not
require that it be assigned a weakness because the
solicitation contemplated that situation, and the awardee
submitted a letter of commitment from that individual; (iii)
where the solicitation stated that offerors could identify
"up to" 10 key personnel, the protester was not entitled to
a higher rating simply because it offered 10 personnel while
the awardee offered 6; (iv) the agency's assignment of a
rating of "Very Good" rather than "Excellent" to portions of
the protester's proposal that had "minor" weaknesses
comported with the definitions of the ratings in the
evaluation scheme; (v) there was a rational basis for the
agency's evaluation of the awardee's past performance; (vi)
the agency's request during discussions for more information
concerning the role of the awardee's major subcontractor
did not require the awardee to respond in a particular
volume of its proposal because the requested information
related to more than one volume, and the solicitation
allowed the agency to assess any available information to
evaluate past performance; and (vii) the agency did not
treat offerors disparately in evaluating cost overruns in
past performance; and in the
ZIN decision discussed above, the SBA's OHA did not
ignore evidence concerning affiliation and correctly used 13
C.F.R. § 121.103(h) to calculate the awardee's employee
count.
In
NAICS Appeal of Dellew Corp., the OHA held that
in a solicitation to provide preventative maintenance
services for various aspects of a facility's HVAC system,
batteries and emergency power systems, and site monitoring
software, the Contracting Officer's choice of NAICS 561210
("Facilities Support Services") had a rational basis and
would be accepted over the appellant's choice of NAICS
238990 ("All Other Specialty Trade Contractors") and the
SBA's choice of NAICS 238220 ("Plumbing, Heating, and
Air-Conditioning Contractors") as well as other NAICS codes
mentioned by the OHA that would have application to isolated
portions of the work, where there was no clear evidence that
any single NAICS code applied to more than 50% of the
contract work.
In NAICS
Appeal of Solvent Services, LLC, the OHA held that
in a solicitation for the provision of medical technologists
or medical laboratory technicians to support the medical
laboratories at two VA facilities, the Contracting Officer's
choice of NAICS 621511 ("Medical Laboratories") was
preferable to the appellant's choice of NAICS 561320
("Temporary Help Services"). |
November 19 |
In
Size Appeal of Future Technologies, Inc., the
SBA's OHA held that the Area Office had erred in dismissing
a size protest on the basis that the Contracting Officer's
failure to request recertification and the fact that no
offeror had provided one constituted a constructive change
deleting the requirement for recertification on a task
order set aside for small business under an unrestricted MAC
because the Area Office's position contravened the
controlling reg, which is clear that, in such a situation,
"a concern must recertify its size status and qualify as a
small business at the time it submits its initial offer,
which includes price, for the particular order." 13 C.F.R. §
121.404(a)(1)(i)(A).
In
Size Appeal of Assisted Building Solutions, LLC,
the OHA held that the Area Office correctly dismissed (as
nonspecific) a protest alleging only that challenged firm
was not small, and the appellant could not present new
evidence on appeal that was available to it when it filed
its original protest.
In
FlightSafety Defense Corp., the Court of Federal Claims
held that in a fixed-price contract to develop a crew
training system for a new aircraft that Boeing was
developing, the contractor was not entitled to recover extra
costs for delays in its work caused by Boeing's own delays
because: (i) during the solicitation process and during
contract performance, the Government did not withhold any
Boeing data that it possessed; (ii) the contractor, not the
Government, was responsible for obtaining any Boeing data
not in the Government's possession; and (iii) the contractor
was aware of the possibility of delays in obtaining data
from Boeing and specifically took that into account when
bidding on the contract. |
November 18 |
In
VSBC Appeal of
Precision Global Supply, LLC, the SBA's OHA upheld
the denial of a firm's SDVOSB status because its Operating
Agreement required unanimous consent of all members,
including non-SDVs, to amend the agreement.
In VSBC
Appeal of Snowfensive LLC, the OHA overturned the denial of a
firm's SDVOSB status because a provision in its Operating Agreement
requiring the agreement of a "majority of members" must be read in
light of the definition in the agreement that a majority of members
meant members "holding more than 50% of the Sharing Ratios,” of which
there was only one: the SDV.
In VSBC
Appeal of Xebec, Inc., the OHA overturned the denial of a
firm's VOSB status for alleged lack of control by the veteran because:
(i) the veteran sat on the Board of Directors and was the majority
shareholder in a situation where there were no supermajority voting
requirements; (ii) according to the law of the state where the firm
was registered, a simple majority was required for shareholder action,
and the veteran, as the majority shareholder, clearly had the ability
to control formal shareholder action; (iii) the applicable state law
merely required a plurality vote to elect directors, and as the
majority shareholder, the veteran had the ability to control the
election of directors; and (iv) a provision in the Bylaws that
informal action by the shareholders required the written consent of
all shareholders was not a supermajority voting requirement
but provided, as a convenience, an alternate mechanism for actions to
be taken without a meeting, but did not enable the minority
shareholder to block any action.
In VSBC
Protest of Veteran Elevated Solutions LLC JV, the OHA denied
a protest of a firm's SDVOSB status because,
inter alia, its SDV provided persuasive evidence that his
involvement with other firms did not interfere with his management of
the firm to which he devoted his efforts full time during normal
business hours every day of the workweek and on weekends as necessary.
In VSBC Protest of
Anderson Boneless Beef Holdings, LLC, the OHA
denied a protest of a firm's SDVOSB status,
inter alia, because the fact that the firm was a
sole proprietorship did not prevent the application of the
surviving spouse rule at 13 C.F.R § 128.202(i)(1).
In VSBC
Protest of Blue Water Thinking, LLC, the OHA held that: (i)
the fact that the SDVOSB member of a mentor-protégé JV had been
temporarily listed as inactive by the controlling state agency (as a
result of a clerical error) was not fatal to its status because the
firm had been reinstated and that state's law provided that once
reinstated, the reinstatement related back to, and took effect as of,
the effective date of the dissolution and the firm thereby resumed
carrying on its business as if the dissolution had never occurred;
(ii) the assertion that the JV agreement failed to comply with the
applicable requirements was unsupported and refuted by a
point-by-point comparison of the JV's provisions to their counterparts
in the controlling regulation. By the way, the sentence fragment in
the first paragraph is not my mistake. |
November 15 |
Effective December 13, the DOE is publishing a final rule
comprehensively
revising its acquisition regulation (the DEAR) in order
to update and streamline the policies, procedures,
provisions and clauses that are applicable to the
Department’s contracts, including eliminating coverage that
is obsolete or that unnecessarily duplicates the FAR and
adding several new clauses and amending several others in
order to promote more uniform application of the DOE’s
contract award and administration policies. |
November 14 |
In
RBVetCo, LLC, the Court of Federal Claims held there was
no way under applicable statutes, court rules, and binding
Supreme Court precedent for it to award attorneys' fees to
the losing party in a bid protest. In this case, the
plaintiff had challenged an award, after which the VA had
promptly and voluntarily undertaken corrective action and
had confirmed the award: "'Creativity is seeing what others
see and thinking what no one else ever thought.' Here,
Plaintiff examined well-established court rules and Supreme
Court precedent, and crafted an argument claiming the
opposite. While creative, this Court disagrees with
Plaintiff’s interpretations." |
November 12 |
Federal Acquisition Circular (FAC)
2025-01 has been published and includes the following
two items:
FAR Case 2024-002: An interim rule amends the FAR to
implement a prohibition on the procurement and operation of
unmanned aircraft systems manufactured or assembled by an
American Security Drone Act-covered foreign entity. Comments
are due by January 13, 2025.
FAR Case 2023-018: An interim rule amends the FAR by
revising the solicitation provision at FAR 52.204–7 ("System
for Award Management") to clarify the SAM preaward
registration requirements in paragraph (b)(1) of the
provision. Comments are due by January 13. |
November 11 |
In
Acuity–CHS Middle East LLC, the Court of Federal Claims
held that a firm that had been disqualified by an OCI from
participating as subcontractor in a task order award lacked
both Article III standing to challenge that situation
(because the protester's aspiration to participate in the
task order at some point in the future was purely
hypothetical since the awardee already had a subcontractor,
and there was no reason to believe it would exchange that
subcontractor for the plaintiff if plaintiff were to prevail
in its suit) and statutory standing under 28 U.S.C. §
1491(b)(1) (because, under the CAFC's ruling in
Percipient.ai, the plaintiff was evoking not just the
third prong of jurisdiction (a violation of a statute), but
also the first prong, since the plaintiff's prayer for
relief would require the task order to be canceled and
reissued). Subsequently, the CAFC
vacated its Percipient.ai decision and granted a motion
for a rehearing en banc on the question: "Who can be 'an
interested party objecting to . . . any alleged violation of
statute or regulation in connection with a procurement or a
proposed procurement' under 28 U.S.C. § 1491(b)(1)?"
In
Michael Stapleton Assocs. Ltd.,
et al., the court denied the plaintiff's
request to reinstate its prior contracts following a
CAFC decision that had reversed a
prior CoFC decision
(which had enjoined the plaintiff from participating in a
resolicitation due to an OCI) without remanding the case or
providing remand instructions because,
inter alia, further proceedings are not normally
conducted in situations like this one, and the CAFC had
denied the plaintiff's request to issue an injunction
preventing the transition of the contract work away from the
plaintiff. |
November 8 |
Catching up a bit here. In
VSBC Protest of Beshenich Muir & Assocs., and Resilient
Innovations, LLC, on remand from
the Court of Federal Claims, the SBA's OHA reversed its
earlier decision that had sustained a protest. The OHA now
holds that a joint venture agreement to perform an SDVOSB
IDIQ contract is only required to comply with the
more lenient provisions of the second sentence of 13 C.F.R.
§ 128.402(c)(7). That sentence requires only that the JV
agreement contain a clause laying out the general
responsibilities of the parties with respect to contract
negotiation, source of labor, and contract performance,
rather than specifying those responsibilities in detail. |
November 7 |
The GAO sustained one of the grounds of protest by
GovCIO, LLC, because the agency's assignment of a
significant strength to the awardee's proposal for exceeding
the daily requirements for conversion of source materials
was based on the use of calendar days rather than workdays
(which formed the basis of the awardee's quote).
The GAO also sustained one of five grounds of protest by
IBSS Corp.
because the record failed to establish that the agency had
meaningfully evaluated the awardee’s proposed staff
compensation figures (which were lower than the compensation
in the predecessor contract) as required by the terms of the
FAR 52.222-46 ("Evaluation of Compensation for Professional
Employees"). |
November 6 |
GSAR Case 2021-G530: The GSA proposed to amend its
acquisition regulation (GSAR) to add a new section that
adopts the amended definition of the term "public building
or public work" from the DOL's Updating the Davis-Bacon and
Related Acts Regulations final rule and to include
compliance with the minimum wage and sick leave Executive
Orders, and other requirements for leasehold acquisitions
when there is a qualifying construction event as defined in
this rule. Comments are due by January 6, 2025.
In
Advanced Simulation Technology, Inc., the Court of Federal
Claims granted the Government's motion to dismiss the case
because it had no continuing jurisdiction over a protest
after the Government had terminated the contract that was
originally protested and cancelled the only two delivery
orders that had been issued under it. Specifically, in
response to each of the protester's arguments to retain
jurisdiction, the court held that: (i) the Government's
continuing internal development of software it had started
decades ago was not a procurement; (ii) the Government's
continuing need for the product canceled under the prior
contract was not yet a procurement; and (iii) assertions
that the Government intended to use outside contractors to
aid in the internal software development work were not
sufficient to sustain this protest because, inter alia,
the protester had not provided evidence of exactly what was
being done, and outside contractors may be used to augment
or assist government employees in a project. Moreover, those
outside contractors would deserve notice of a protest
against their work and have not been given such notice. The
court also denied (as futile) the plaintiff's requests to
amend the Complaint or transfer the case. The protester's
motion for reconsideration was
denied.
In
Tech Systems, Inc. a unsuccessful protest, the court held
that, contrary to the protester's allegations, the
Government's rationales for its technical and past
performance allegations were sufficiently documented in the
record, and the awardee's failure to provide duty and cost
descriptions for five out of 102 positions in its technical
proposal was immaterial, especially where they appeared in
the cost volume:
First, only five positions—out of 102—lacked duty and cost
descriptions. . . . [The Awardee] provided the costs
for those five positions in its cost proposal, and the Army
(in its cost-realism analysis) found that those positions
matched with SCA/CBA positions. . . . Third, the
solicitation explicitly vested the Army with discretion in
how to address technical uncertainties. AR 128 (stating that
a proposal “may”—not must—be rejected for technical
uncertainty); see also ITellect, LLC v. United
States, No. 24-935 . . . (Fed. Cl. Oct. 21, 2024)
(“While the use of the permissive ‘may’ does not confer
plenary discretion to the contracting officer, in the
absence of any prescribed standards . . . the government’s
discretion is at its apex.”). Hence, the Army did not have
to reject the proposal merely because [the awardee] did not
list costs and duties for five positions. And contrary to
[the plaintiff's] assertion that the Army had to provide a
detailed explanation for why the defect did not render [the
awardee's] proposal unacceptable, nothing in the
solicitation required the Army to do so.
|
November 5 |
In
Size Appeal of Veterans Electrical Group, LLC,
the SBA's OHA held that the Area Office had erred in finding
a violation of the ostensible subcontractor rule where a
Teaming Agreement established that the prime contractor
would perform over 60% of the construction contract work,
and the prime's CEO would be the Project Manager responsible
for contract performance, absent any of the indicators of
unusual reliance on the subcontractor. Incidentally, the
following sentence that appears three paragraphs above the
"Discussion" section of the decision is gibberish, so if
anyone has the original and can tell me how it is supposed
to read, I would appreciate it: "Seventh, Daniels takes at
issue where Appellant is to submit a quote for the
electrical services, suggestion that Roncelli will have
authority over the quote provided." EDIT--The gibberish is
in the original document.
In Size Appeal
of Clearwaters Industries Solutions, LLC, the OHA
upheld the Area Office's decision dismissing a size protest
as untimely for a task order set aside for small businesses
under an FSS contract because offerors were not required to
recertify size by the underlying contract or the task order
RFQ where the answer to a solicitation question referring to
registration and verification in the SBA's VetCert database
did not explicitly require an offeror to certify its size,
and thus was ambiguous as to whether it was requiring
certification, which is not sufficient to establish that
requirement, especially where the Contractor Officer, who
has the discretion to request recertification, stated that
it was not required. |
November 4 |
In
VSBC Appeal of Northeast Solar Design Assocs, LLC,
the SBA's OHA affirmed the denial of a firm's application
for certification as a VOSB because: (i) the appellant had
failed, even after a specific request, to provide any
information showing that it was was commercially reasonable
for its non-veteran member to be more highly compensated
than its veteran member; and (ii) the firm's Operating
Agreement required unanimous consent (including that of the
non-veteran member) for matters in addition to those
permitted by the regulations. Similarly, in
VSBC Appeal of A2B Medical, LLC, the OHA upheld
the denial of a firm's SDVOSB certification because, on
appeal, the appellant conceded that the provisions of its
Operating Agreement requiring unanimous consent of members,
including its non-SDV, did not comply with the applicable
regulations.
In VSBC
Appeal of Clark Building Technologies, LLC, the OHA
upheld the denial of a firm's application for certification
as an SDVOSB (or VOSB--the decision mentioned both in
different places) because the appellant was owned by a
corporation which, in turn, was owned by a trust, of which
the qualifying veteran was the trustee, which did not met
the regulatory requirement for direct ownership of
the applicant firm by a qualifying veteran.
In VSBC Appeal
of Healthy Acres LLC, the OHA reversed the denial
of a firm's SDVOSB certification because: (i) the denial was
based on a superseded version of the Operating Agreement;
and (ii) 13 C.F.R. § 128.203(a) allows for the spouse of a
permanently and totally disabled veteran to exercise control
over the management and daily business operations of an
SDVOSB, as though that spouse were themselves a
service-disabled veteran. |
October 31 |
In
D2 Government Solutions, a Rule 11 proceeding submitted on
the record without a hearing, the ASBCA denied all the
contractor's breach claims for almost a complete lack of
evidence. The contractor alleged that it had been denied
access to a database containing key evidence, but the Board
found a lack of evidence for that allegation as well. |
October 29 |
In
Chugach Federal Solutions, Inc., the ASBCA held that the
contactor was entitled to recover its costs of a
government-mandated requirement during COVID that the
contractor's employees quarantine 14 days before beginning
performance because the Government had not established that
sovereign acts defense applied since the quarantine was
among the events envisioned by a specific contract clause
stating that the costs of complying with health and safety
directives would be handled under the Changes clause. In
other words, the "impossibility" prong of the sovereign acts
defense was not met: the quarantine was not an event that
made the Government's performance of its contractual
obligations impossible. |
October 28 |
In
Computer World Services Corp., an unsuccessful protest,
despite the plaintiff's efforts to characterize its protest
in a way to avoid the result, the Court of Federal Claims
held that, under FASA, it lacked jurisdiction over a protest
aiming to empanel a new technical evaluation committee for
corrective action in connection with the proposed issuance
of a task order.
In
Acuity Edge, Inc., the court held that the protester
lacked standing because its offer was expressly made valid
for a time period much shorter than that required by the
solicitation. The protester argued that it should have been
permitted to cure the problem through discussions because
the agency conducted discussions with the awardee. However,
the solicitation expressly carved out discussions concerning
an offeror's OCI plan from the general requirements of FAR
15.306 concerning discussions, and the protester had failed
to object to that solicitation provision and subsequently
had expressly waived that argument in its briefing. The
court also noted in dicta that, even if the protester had
established standing, it had failed to show prejudice from
the agency's use of an undisclosed evaluation factor and
from the agency's alleged failure to give it a strength for
an aspect of its staffing plan.
The SBA
is proposing to amend its regulations to apply the Rule
of Two to multiple-award contract task and delivery orders,
with some exceptions. Comments are due by December 24. |
October 24 |
In
The Povolny Group, Inc., the CBCA (with the agreement of
the parties) dismissed an appeal for lack of jurisdiction
because the Contracting Officer's response to the
contractor's request for a deviation was not an appealable
decision since the contractor had not submitted a claim.
In
Commonwealth Home Health Care, Inc., the CBCA held that:
(i) although the Government's estimate in a requirements
contract was negligently prepared in multiple respects, the
contractor did not establish reasonable reliance on the
estimate because, as the incumbent, it had access to all the
data underlying the estimate and yet did not make reasonable
inquiry as to the flaws in it prior to award, thus waiving
its right to pursue the negligent estimate claim; (ii) the
fact that Government's actual needs fell below the negligent
estimate did not invalidate the option exercises because,
inter alia, the contract warned that a discrepancy
between the actuals and the estimates would not be a basis
for an equitable adjustment; and (iii) the contractor waived
its right to object to the untimely exercise of option year
2 by performing for four months before objecting.
In
Framaco Int'l Inc., the CBCA held that the contractor
was entitled to reimbursement for the customs fees that it
paid on behalf of United States for imported construction
materials procured for the embassy compound construction
project in Papua New Guinea (PNG) because the United States
was the only entity authorized to obtain the customs
exemptions, especially after the PNG Government stopped
processing the customs duties exemption documentation
submitted by the contractor, and the contract and other
available documentation established that the United States
was responsible for those fees. |
October 23 |
In
Sage Acquisitions LLC, the Court of Appeals for the
Federal Circuit affirmed the
prior CBCA decision denying relief to an asset manager
contractor for T for C costs and breach damages under HUD's
agency's Real Estate Owned ("REO") disposition program
because: (i) the contracts at issue clearly and
unequivocally stated they were IDIQ contracts with a
guaranteed minimum, and the contract sections referring to
"all" work in a geographic area did not mean they were
requirements contracts because those sections merely
described the manner in which the work would be performed
and (had they been interpreted as assigning all requirements
to the contractor) would have conflicted with a
section clearly giving the Government the right to
unilaterally reduce the scope of the contractor's
geographical region to zero and to utilize other
contractors; (ii) a contract provision stating that task
orders would be issued on a yearly basis meant that task
orders would be issued once per year, not that each task
order must provide for a performance period of 12 months,
and even if that were what it meant, the Government
satisfied the IDIQ requirement by ordering the guaranteed
minimum; and (iii) the Government did not breach the
contract by assigning some asset management work to non-REO
alternatives because that was specifically contemplated by
the contract and was done for the legitimate business
purpose of reducing costs rather than avoiding the
Government's responsibilities under this contract.
FAR Case 2020-009: A proposed rule would amend the FAR
to revise the list of domestically nonavailable articles
under the Buy American statute and implement requirements
related to making future changes to the list. Comments are
due by December 23. |
October 22 |
In
ITellect, LLC, an unsuccessful post-award protest by the
incumbent, the Court of Federal Claims held that, after
investigating an alleged OCI, the Contracting Officer
reasonably concluded there was no evidence that the
awardee's President and his wife (who had been the
Contracting Officer on the incumbent's contract for two
months two years prior to the current award) had engaged in
anything that could create even the appearance of
impropriety so there was no reason for the awardee to
disclose the relationship in its proposal:
No evidence in the record shows or even suggests that [the
awardee's] president’s wife either provided any confidential
information to, or communicated with, her husband regarding
the solicitation or the incumbent contract. Further, the
conflicted contracting officer played no role in any
decision regarding the development and issuance of the
solicitation, the evaluation of offers to the solicitation,
or the subsequent contract award. [The agency] did not rely
upon the alleged omission of [the awardee], and an OCI
neither affected the award nor created the appearance of any
impropriety. Therefore, the contracting officer’s
conclusion, finding that the alleged appearance of an OCI
was not disqualifying, was reasonable.
In
VSBC Appeal of LanguageArts LLC, the SBA's OHA
overturned the denial of a firm's VOSB application because
the denial was based on the assumption that the veteran
owner did not have access to the firm's bank account when he
did in fact have access prior to the time the denial
decision was made.
In VSBC
Appeal of Kai Makani Consulting, LLC, the OHA
upheld the denial of a firm's SDVOSB status because the
firm's Operating Agreement contained numerous provisions
requiring the unanimous agreement of all of Appellant's
Members (two of whom were not disabled veterans), including
matters beyond the "extraordinary circumstances" permitted
by 13 C.F.R. § 128.203(j).
In VSBC
Appeal of Precise Management, Inc., the OHA upheld
the denial of a firm's application as an SDVOSB because the
firm had two managing members with full authority to control
the firm, one of whom as not an SDV.
In VSBC Appeal of
BlackHays Group LLC, the OHA upheld the denial of a
firm's re-certification as an SDVOSB despite harmless errors
in the original denial decision because the appellant was
unable to satisfy reasonable requests for contracts signed
by the individual who purportedly managed and controlled the
firm's operations. |
October 21 |
In
FreeAlliance.com, LLC, et al., the Court of
Federal Claims permitted an original protester to amend its
Complaint following corrective action on remand because: (i)
amendments filed 10 days after the agency's decision on
remand were not "unduly delayed" since the amendments
related to (a) a purportedly unstated evaluation criterion
that first appeared in the agency’s reevaluation decision
during corrective action and (b) the allegedly unequal
application of that unstated criterion; and (ii) the
amendments were not "futile" because they "plausibly g[a]ve
rise to an entitlement to relief." |
October 18 |
The GAO sustained consolidated protests by
KBR Services, LLC; Vectrus Systems Corp.
because the agency improperly concluded the awardee's
proposal was acceptable. Specifically, the awardee's
technical and cost proposals both stated the offeror would
self-perform all the work, which conflicted with its small
business participation proposal and the solicitation
requirement in that area. After discussions closed,
the agency asked the offeror to "clarify" (simply, yes or
no) whether it intended to comply with the solicitation
requirement, and it replied that it did. The agency then
concluded that the proposal was acceptable despite the fact
that it still contained the internal inconsistency.
In a separately published decision on the same procurement
by
Vectrus
Systems, LLC [?; even though the first line in the body
of the decision identifies the protester as the Vectrus
Systems Corp. in the consolidated decision above], the GAO
sustained the protest, inter alia, because the
agency did not respond to the merits of the protester's
claims that its technical proposal had been misevaluated,
arguing only that the protester was not prejudiced by the
alleged errors. The GAO concluded there was a reasonable
possibility the protester was prejudiced by the unrebutted
alleged errors. |
October 17 |
The GAO sustained a protest by
Hometown Veterans Medical, LLC, finding that the agency
had used unstated evaluation criteria where, during an
initial cursory review of proposals, the agency rejected the
protester's proposal (and others) that had not submitted
copies of two representations even though the solicitation
did not expressly require their submission with the proposal
or state that such a review would be used to evaluate
proposals. |
October 15 |
In
David Boland, Inc., the ASBCA first noted it was not (and
never is) bound by statements in the Contracting Officer's
decision, but reviews each appeal de novo. The
Board then denied the contractor's constructive acceleration
claim (on work adjacent to a railroad right-of-way) that
delays caused by passing trains (under the responsibility of
a third party railroad) had been longer than anticipated
because: (i) the solicitation clearly warned bidders of the
situation with the right of way so the alleged delays were
not unforeseeable; (ii) the contractor's subcontractor and
its own subcontractor were largely responsible for the
project delays; (iii) the contractor's own logs showed it
was often performing work during the times it alleged delay
caused by the passing trains; (iv) the contractor failed to
present any critical path analysis of the alleged delays;
(v) during contract performance, the contractor never
requested a time extension from the Government; and (vi) the
Government did not explicitly or implicitly direct the
contractor to accelerate the work.
In
WINN Solutions, LLC, the ASBCA held it lacked jurisdiction
over an appeal from an alleged default termination because
there was no Contracting Officer's decision terminating the
contract--only a letter warning the contractor of a possible
termination if it failed to meet the contract terms (lacking
any of the standard language identifying it as a final
decision and any statement of appeal rights).
In
Colony Constr., the ASBCA upheld a default termination in
a Rule 11 case submitted on the record without a hearing
based on the contractor's failure, inter alia, to
provide some required submittals entirely and its submittal
of others that were unsatisfactory absent actual evidence to
the contrary or excuse by the contractor, whose current
assurances on appeal that the defective work could be
cleared quickly were unavailing. |
October 11 |
In
Technatomy Corp.,
et al., which involved only preliminary motions to
dismiss in a case with a large number of consolidated
protests of a VA solicitation that resulted in the award of
30 contracts, the Court of Federal Claims held that: (i)
under Blue & Gold Fleet, by not protesting prior to
award, the plaintiffs had waived their right to contest the
Government's decision to award only 30 contracts because the
solicitation made clear that was the Government's intent,
and neither of two caveats in the solicitation (one allowing
additional awards in case of a tie at the 30th position
ranking, and the other creating an option solely within the
Government's discretion to add contractors in an "on-ramp"
situation) changed the solicitation's clear designation of
30 awards; (ii) the plaintiffs' allegation that the VA acted
arbitrarily by failing to evaluate and validate the
offerors’ small business participation commitments survived
the Government's motion to dismiss because the solicitation
contemplated some amount of review for any offeror’s
small-business-participation proposal and awarded points for
it in the evaluation; (iii) the plaintiffs' allegation that
the VA failed to meaningfully review investigate the
veracity of the offerors’ self-reported veteran employment
figures also survived a motion to dismiss because the
solicitation contemplated some amount of review; (iv) the
plaintiff's allegation that the Government failed to review
certain supporting documents submitted by offerors in
connection with evaluation of relevant experience was a
valid challenge to the evaluation; (v) allegations that
certain joint venture offerors were not certified SDVOSBs
must be dismissed because the solicitation was clear that
joint ventures did not need to be independently certified in
VetCert to be eligible for an SDVOSB-reserved award and
required only that the joint venture’s managing partner be
certified (the OHA having recently reached the same
conclusion); and (vi) the agency properly disqualified one
joint venture offeror for failing to comply with the
solicitation requirement that it name its responsible
manager in its proposal.
DFARS Case 2024-D004: Effective November 25, a final
rule amends the DFARS to implement section 874 of the NDAA
for FY 2022 as amended by section 872 of the NDAA for FY
2024, which authorize the DoD to establish a pilot program
that allows for the noncompetitive award of certain
follow-on contracts to employee-owned businesses that meet
the definition of a qualified business.
DFARS Case 2024-D006: A final rule amends the DFARS to
implement section 853 of the NDAA for FY 2024, which amends
the definitions of "nonprofit organization" and "business
entities" at 10 U.S.C. 4951 for the Procurement Technical
Assistance Program.
DFARS Case 2024-D025: A proposed rule would amend the
DFARS to to revise joint venture eligibility requirements
and nonmanufacturer rule applicability to 8(a) contracts
awarded pursuant to the 8(a) Partnership Agreement between
the DoD and the SBA in order to align the DFARS with the
FAR. Comments are due by December 9.
DFARS Case 2021-D028: A proposed rule would amend the
DFARS to implement 10 U.S.C. 3227(b) and (c) and updates to
the DFARS cost and software data reporting requirements made
in the DoD Instruction 5000.73 ("Cost Analysis Guidance and
Procedures") and Department of Defense Manual 5000.04 ("Cost
and Software Data Reporting"). Paragraphs (b) and (c) of 10
U.S.C. 3227 require, unless waived, submission of cost data
for contracts expected to exceed $20 million or $50 million
for acquisition and sustainment programs expected to exceed
$100 million. The data will facilitate cost estimation and
comparison across acquisition programs. These changes
implement DoD Instruction 5000.02 ("Operation of the
Adaptive Acquisition Framework"), which restructured defense
acquisition guidance to implement the Adaptive Acquisition
Framework. Comments are due by December 9. |
October 9 |
In
CAN Softech, Inc., an unsuccessful post-award protest of
an FSS procurement conducted pursuant to FAR 8.4, the Court
of Federal Claims held, inter alia, that: (i) the
technical evaluation properly gave weight to the awardee's
incumbency because the solicitation did not require the
agency to neutralize the incumbent's natural advantage; (ii)
the awardee's clear disclosure of planned staff reductions
in option years in its Price Volume but not in its Technical
Volume did not violate a solicitation requirement for
"consistency" between the volumes, especially where the
solicitation stated that pricing information would be
available to the technical evaluators; (iii) the
solicitation did not require a detailed comparison of the
competitors' proposed full time employees, but rather only a
qualitative assessment of degree to which each offeror's
proposed staffing was consistent with meeting the contract's
requirements; and (iv) although the record was unclear
whether the agency conducted a qualitative level of effort
assessment of the awardee's proposed full time employees,
the protester had not established "significant prejudice"
because changing the evaluation as protester desired did not
compel the conclusion that the protester would then have had
a substantial chance of award.
Effective November
6, the Department of Agriculture is publishing extensive
revisions to its acquisition regulation (AGAR) to
reflect changes to acquisition law, regulations, and
internal agency policies since its last major revision in
1996.
HHS
is proposing changes to its acquisition regulation
(HHSAR) to streamline the regulation, to revise or remove
policy superseded by changes in the FAR, to remove any
procedural guidance that is internal to HHS into a new HHS
Acquisition Manual (HHSAM) as internal policies, guidance,
and instructions, to add new coverage to implement agency
unique requirements, and to update the HHSAR to reflect
organizational changes in the department, incorporate recent
statutory changes and government mandates, and to accomplish
editorial revisions for clarification. Comments are due by
December 2. |
October 8 |
In
Rotair Aerospace Corp., an unsuccessful protest against
a sole source procurement, the Court of Federal Claims held
that: (i) the available records demonstrated that the agency
conducted a reasonable investigation (even though it was not
as exhaustive as the protester maintained it should be)
before concluding that the item being procured was
proprietary to the sole source recipient and that the agency
did not have data rights in it; (ii) although the agency
violated FAR 9.207(b) by failing to provide the protester
with timely notice of its removal from the approved sources
list, the protester had not shown that the basis for its
removal was improper or arbitrary, and since receiving the
tardy notice of its removal, the protester had not sought to
attain requalification, so it was unclear what the outcome
of that process would have been, which precluded the court
from finding that, had the agency timely notified protester
of its removal as an approved source, the protester would
have had a substantial chance at receiving an award (i.e.,
there was no proof of prejudice); and (iii) the protester
failed to prove a clear violation of 10 U.S.C. § 3243, which
provides instructions for establishing a qualification
requirement, because the record did not show that the
protester requested the qualification requirements for the
sole-source items or that the agency refused to provide
them, and while § 3243 (c)(3) provides that a potential
offeror may not be denied the opportunity to submit an offer
solely because the offeror is not on the qualified bidders
list, this applies only when the potential offeror
demonstrates that it or its product meets the qualification
requirements or can meet such requirements before the
contract award date, and the record does not show that the
protester attempted to make such a demonstration for the
either of the sole source items or that it was denied an
opportunity to do so.
In
Hanford Tank Disposition Alliance, LLC, an unsuccessful
post-award protest, the court held, inter alia,
that: (i) a lapse in the eventual awardee's SAM registration
in the original procurement was irrelevant because the
agency undertook corrective action, which involved the
submission of revised proposals and a reevaluation, and the
awardee's SAM registration was effective on the date of
submission of revised proposals and from that time through
award; and (ii) the cost realism analysis was not
objectionable for having examined proposals more fully than
the proposal element specifically identified in the
solicitation. |
October 7 |
In The
Boeing Co., which is illustrative of the axiom that it
is futile for the Court of Federal Claims to engage in a
pissing contest with the Court of Appeals for the Federal
Circuit, the CAFC reversed (for the second time) a
prior CoFC decision and held that: (i) pursuant to 28
U.S.C. § 1491(a)(2), the CoFC had jurisdiction over the
counts in a Complaint challenging a Contracting Officer's
decision demanding reimbursement for allegedly increased
costs resulting from changes to a contractor's cost
accounting practices even if the gravamen of the
contractor's Complaint was a challenge to the validity of a
regulation (in this case FAR § 30.606) because those counts
were basically a contract dispute governed by the dispute
resolution provisions of the CDA; and (ii) pursuant to 28
U.S.C. § 1491(a)(1)), the court also had jurisdiction over a
count in the Complaint based on an alternative
illegal exaction claim. |
October 4 |
In
NAICS Appeal of Laredo Technical Services, Inc.,
the SBA's OHA held that in a solicitation for one full-time
administrative person to perform data entry, administrative
functions, and other duties related to the congressionally
mandated Transition Assistance Program, the contractor's
choice of NAICS 561110 ("Office Administrative Services")
was preferable to the Contracting Officer's choice of NAICS
561320 ("Temporary Help Services") because the worker here
would provide services for up to four years. |
October 3 |
DHS proposes
to amend
its acquisition regulation (HSAR) to add a new subpart,
clause, and provision that would codify how DHS complies
with the requirements of the Make Personal Protective
Equipment (PPE) in America Act in order to promote domestic
manufacturing for certain types of PPE critical to the
United States’ national response to a public health crisis,
such as the COVID–19 pandemic. Comments are due by December
2.
In another
Framaco Int'l Inc. decision (is the end in sight yet?),
the CBCA held that the contractor was entitled to recover on
its interpretation of latently ambiguous contract drawings
as to the requirements for a door frame. However, the
contractor lost on five other claims: (i) the contractor
proceeded with changed work regarding a glass partition in a
staircase without authorization from the Contracting
Officer; (ii) a separate grounding system for the PV system
was required by the contract, and, even if it were not, the
contractor undertook the work absent directions from the
Contracting Officer; (iii) a claim that structural drawings
did not include certain elements failed because the
architectural drawings did, and the contractor was required
to comply with both; (iv) the contractor followed its own
submittals in the installation of an irrigation tank vault
and was not required to do any extra work by the Government;
and (vi) the contractor was not required to use GFE for a
security gate, so its claims based upon having to upgrade
the GFE were baseless. |
October 2 |
In
Two Knights Defense LLC, an unsuccessful post-award
protest of an award following corrective action, the Court
of Federal Claims (in a densely packed decision that
challenges my goal of summarizing cases in one sentence)
held, inter alia, that: (i) the Government did not
adopt inconsistent positions at court from its prior
position at the GAO merely by inserting an ellipsis in
solicitation language to emphasize which terminology in the
solicitation's requirements the protester's proposal failed
to address; (ii) the Government's language in its evaluation
did not signify the use of unstated evaluation criteria
because the pertinent words were present in the
solicitation's evaluation scheme; (iii) the Government was
not required to look to other sections of protester's
proposal to fill in the blanks in the section that formed
the basis for the negative evaluation; (iv) the evaluators
properly faulted the protester's proposal for failing to
discuss a required capability ("hybrid cloud computing
environments") at all, and did not add a requirement
concerning such capabilities; and (v) the Government
followed the solicitation's evaluation scheme in assessing
the relevancy of the protester's Past Performance references
and was not required to elevate consideration of two
elements of the relevancy evaluation (contract type and
dollar value) above their status in the solicitation's
stated evaluation scheme.
In
American Medical Equipment, Inc., Servant Health, LLC, Noble
Attorney, LLC, Transcendence, Inc., a decision labeled
as nonprecedential, the Court of Appeals for the Federal
Circuit affirmed the prior CoFC decisions upholding default
terminations of contracts to deliver nitrile examination
gloves (PPE) during COVID because: (i) the contractors
failed to provide actual evidence of excusable delays; (ii)
the contractors failed to provide documentation that the
gloves they tendered were acceptable substitutes for the
contractually specified items, and the "brand name or equal"
solicitation provision only allowed for substitutions
in proposals, not after proposals quoting the appropriate
gloves had been submitted and accepted; and (iii) the
Contracting Officer did not breach the duty of good faith
and fair dealing by terminating the contracts for default
due to lack of timely delivery since the plaintiffs
presented no evidence the terminations were merely
pretextual. |
October 1 |
In
Onésimus Defense, LLC, an unsuccessful post-award
protest, the Court of Federal Claims held that: (i) the
agency had rational bases for its Past Performance and
Confidence ratings based upon the (a) scope and (b)
magnitude of the offerors' past performance references and
did not treat offerors' disparately or apply unstated
evaluation criteria; and (ii) the protest was basically just
a subjective disagreement with the agency's ratings. |
September 30 |
In
VSBC Appeal of BCP Mechanical, LLC, the SBA's
OHA upheld the denial of a firm's SDVOSB certification for
lack of the requisite control because the firm's Operating
Agreement allowed the SDV to delegate certain significant
responsibilities to a manager, and an appendix to the
Agreement made such a delegation to a non-SDV who also held
the critical state license that the firm was required to
maintain.
In
VSBC Appeal of 156 Genus LLC, the OHA dismissed an
appeal from the denial of SDVOSB certification because the
appellant did not allege any error in the underlying
decision but instead offered an amended Operating Agreement
in a belated attempt to cure the problem.
In
United Facility Services Corp. dba Eastco Building Services,
the CBCA denied the contractor's claim for costs allegedly
associated with changes to the equipment that the contractor
was to maintain during performance. Specifically, the Board
held that: (i) a site visit conducted by the contractor's
subcontractors coupled with the requirement for the
contractor to verify the equipment inventory list during the
contract's phase-in period was fatal to the contractor's
claim that the Government withheld superior knowledge as to
accuracy of original list; (ii) the facts that the
contractor was required to verify and update the original
inventory list to account for changes to equipment during
contract performance and that the contractor would be paid
for updates undermined its claim that the Government's
original list was a negligent estimate; (iii) the fact that
the Government was slow to approve some contractor-proposed
changes to the list did not rise to level of a breach of the
implied covenant of good faith and fair dealing; (iv)
because the contract explicitly required that the contractor
identify any increased costs of maintenance of newly added
equipment and specifically listed the conditions for the
contractor to be compensated for those costs, the
contractor's constructive change claim for this exact work
lacked a foundation since the Government did not change the
contractor's duties or the contract's terms; and (v) even if
the contractor had established one or more of its theories
of liability, it failed to present anything close to
adequate evidence of quantum.
In
Fortis Insustries, LLC, which involved the Government's
motion for partial summary judgment in a dispute over
government deductions taken during the performance of a
contract for base services operations and maintenance
services at a federal building that was finally T for C'ed,
the CBCA held that: (i) the use of the term "obligations"
instead of "claims" in a bilateral release associated with
the T for C did not limit its scope; (ii) the release
covered all the contractor's current claims regarding the
deductions except for one month that the Government conceded
was not covered and one other month that the contractor had
indicated in correspondence accompanying the release was
still at issue; and (iii) the contractor had not presented
sufficient evidence that the release had been signed under
duress. |
September 28
|
Guidehouse Inc. won its GAO protest because: (i) the
agency provided no contemporaneous documentation to support
its assertion that it evaluated the awardee's proposed
personnel for several expert labor categories to determine
whether they met the solicitation's requirements or had
equivalent qualifications; and (ii) the agency's assignment
of a weakness to the protester's proposed program manager
was not reasonable because the evaluators’ stated basis for
the weakness--a lack of proposal information detailing his
relevant --did not reasonably account for information
provided within the protester's proposal describing his
duties managing programs for federal agencies.
In
ACLR, LLC, a decision labeled as nonprecedential, the
Court of Appeals for the Federal Circuit affirmed the
prior CoFC decision denying the contractor's claims for
breach of contract, breach of the implied covenant of good
faith and fair dealing, and recovery of certain
termination-for-convenience damages because: (i)
terminations relating to two audits constituted retroactive,
constructive terminations for convenience, consistent with
the FAR 52.212-4(l) clause incorporated into the task order
and, thereby, into the contract; (ii) the contractor
presented no evidence in support of its assertion that the
Government entered the contract in bad faith with no
intention of honoring it; (iii) there was no breach of the
implied covenant of good faith and fair dealing because the
Government did not expand the contractor's duties beyond
those contained in the contract; and (iv) under the T for C,
the contractor was not entitled to recover for a contingency
fee that was to be based on work that had not progressed to
the point that such a fee would have been earned at the time
of the termination.
In
VSBC Appeal of American Defense Builders Trust, the
SBA's OHA affirmed the denial of a firm's certification as
an SDVOSB because a firm owned by irrevocable trust
is not eligible for such certification.
DFARS Case 2022-D013: Effective October 1, a final rule
amends the DFARS to to implement section 843 of the NDAA for
FY 2022, which requires offerors to certify that fuel to be
provided for a contract in support of an overseas
contingency operation is not sourced from a prohibited
nation or region and to furnish such records as are
necessary to verify their compliance with applicable export
control and anticorruption regulations and statutes. Section
843 also requires contracting officers, when conducting a
source selection for such contracts, to consider using
tradeoff processes and certain evaluation factors. If the
contracting officer does not consider a tradeoff process
prior to issuing the solicitation, the contracting officer
is required to justify in writing why a tradeoff process was
not considered. Section 843 also requires the contracting
officer to ensure, prior to contract award, that the offeror
is not disqualified based upon an unsupported denial of
access to a facility or equipment by the host nation.
DFARS Case 2022-D023: Effective October 1, a final rule
amends the DFARS to align it with the FAR transition from
the Data Universal Numbering System to the unique entity
identifier in the System for Award Management.
DFARS Case 2020-D026: Effective October 1, a final rule
amends the DFARS to remove the solicitation provision at
DFARS 252.247–7022 ("Representation of Extent of
Transportation By Sea") and to revise the contract clause at
DFARS 252.247–7023 ("Transportation of Supplies by Sea")
accordingly, to effect the purpose of the provision using
only the contract clause.
DFARS Case 2022-D014: Effective October 1, a final rule
amends the DFARS to implement section 822 of the NDAA for FY
2022, which amends 10 U.S.C. 4025. Section 822 provides the
authority to carry out advanced technology prize programs to
award contracts to recognize outstanding achievements in
basic, advanced, and applied research, technology
development, and prototype development. Section 822
specifies the award of a contract as a prize is a
competitive procedure if the solicitation is widely
advertised. Section 822 also requires approval of such
awards that exceed $10,000 and congressional reporting for
contracts that exceed $10 million.
DFARS Case 2021-D020: Effective October 1, a final rule
amends the DFARS to implement section 1024 of the William M.
(Mac) Thornberry NDAA for FY 2021, which amends 10 U.S.C.
2631 to,
inter alia, clarify the circumstances in which the DoD may seek a
waiver from the basic requirement for DoD supplies to be
transported by seas in either vessels belonging to the
United States or vessels of the United States.
DFARS Case 2022-D004: A proposed rule would amend the
DFARS to to implement section 811(b) of the NDAA for FY
2018, section 814 of the NDAA for FY 2021, and section 804
of the NDAA for FY 2022. Section 811(b) of the NDAA for FY
2018 (now 10 U.S.C. 3705(a)) requires offerors to submit
data other than certified cost or pricing data upon the
contracting officer's request. Section 814 of the NDAA for
FY 2021 (now 10 U.S.C. 3702(a)(2), (3), and (4)) establishes
a $2 million threshold for the Truthful Cost or Pricing Data
statute's (formerly the Truth in Negotiations Act (TINA) and
still referred to as TINA) requirements with respect to
contract modifications, subcontracts, and modifications to
subcontracts, respectively. Section 804 of the NDAA for FY
2022 augments the requirement at 10 U.S.C. 2306a(a)(6) (now
10 U.S.C. 3702(f)) for contracting officers to modify
contracts to reflect the relevant TINA threshold. Comments
are due by November 25.
DFARS Case 2024-D007: A proposed rule would amend the
DFARS to implement section 812 of the NDAA for FY 2024,
which prohibits contracting officers from awarding contracts
assigned a NAICS code beginning with 5416 (for management,
scientific, and technical consulting services) to offerors
who hold contracts that involve consulting services with
certain covered foreign entities. Section 812 allows an
offeror to submit a conflict-of-interest mitigation plan and
allows the prohibition to be waived under certain
circumstances. Comments are due by November 25.
DFARS Case 2020-D028: A proposed rule would amend the
DFARS to implement a GAO recommendation that agencies take
steps to ensure that appropriate agency-funded fundamental
research data are readily findable by, and accessible to,
the public. Comments are due by November 25. |
September 27 |
In
VSBC Protest of Elevated Technologies, Inc.,
the SBA's OHA held that the challenged firm was an eligible
SDVOSB for the procurement at issue because: (i) two SDVs
acquired a total of 51% ownership in the firm (after the
death of the prior SDV owner) prior to the date when initial
priced offers were due; (ii) an alleged delay in reporting
the change in ownership status to the SBA was not grounds
for an SDVOSB protest; and (iii) the fact that the ownership
shares were encumbered until fully paid for did not render
the ownership conditional because the "pledge or encumbrance
of stock or other ownership interest as collateral,
including seller-financed transactions, does not affect the
unconditional nature of ownership if the terms follow normal
commercial practices and the owner retains control absent
violations of the terms.” 13 C.F.R. § 128.202(b)(1).
|
September 26 |
In
Wilson 5 Service Co., the GAO held the record did not
establish that the agency's minimum needs justified an FSS
RFQ provision favoring quoters who had experience managing
performance at geographically dispersed facilities under
a single contract over those with experience performing
the same type of requirements under multiple contracts
at the same time.
In
Kropp Holdings, Inc., although the GAO found that the
agency's evaluation of the awardee's proposed OCI mitigation
plan was unobjectionable in itself, the agency failed to
evaluate the contradiction between the plan and the
awardee's proposed technical approach under the technical
capability factor. |
September 24 |
In
MAXIMUS Federal Services, Inc., although the GAO
rejected the protester's challenges to the use of a Labor
Management Agreement (LHA) clause in a recompeted
solicitation, it sustained the allegation that the clause
was ambiguous because it did not make clear the period of
time during which an apparently successful offeror would
have to negotiate a pre-award LHA with a qualifying labor
organization. According to a footnote in the decision:
An LHA is an agreement between a labor organization and an
employer before the union has been selected or recognized as
the collective bargaining representative of the employer’s
personnel. . . . Under a typical LHA, the labor
organization will give up its right to strike, and the
employer will provide numerous concessions, including
permitting the labor organization to recruit and organize
its employees, remaining neutral in any organizing campaign,
and providing employees’ names and contact information. |
September 23 |
In
Assessment and Training Solutions Consulting Corp., an
unsuccessful post-award protest, the Court of Federal Claims
held that the plaintiff could not succeed because its
proposal employed the same font-size interpretation that it
complained the awardee was allowed to use: "The pot may
choose to call the kettle black, but it is a surefire way to
lose a case."
In
NoMuda, Inc., ruling on the Government's objections to
various conts in the Complaint, the CBCA held that: (i) it
lacked jurisdiction over a count alleging unjust enrichment
under the theory of quantum meruit; (ii) the Government's
motion to dismiss the appellant's breach allegations for
failure to state a claim was essentially a motion for
summary judgment in disguise, which would require a ruling
on the merits; and (iii) the Complaint (that for more than a
year mostly or entirely after the alleged adoption of an
option after the Government placed the prime call order, the
Government did not amend the call order as the appellant had
been led to believe it would) failed to state a claim of
withholding superior knowledge.
In
Bear Mountain Cutters, Inc., the CBCA held it lacked
jurisdiction over the appellant's claim for damage to its
equipment arising out of a BPA, which is not a contract, but
did have jurisdiction over a claim for the same damage based
upon an order placed under that BPA.
In
VSBC Protest of Montana Septic & Sewer, LLC, the
SBA's OHA dismissed a protest of another firm's SDVOSB
status as moot because the protester won the procurement.
In VSBC
Protest of Glory to the Lord Investments, Inc., d/b/a Supply
Chain Management, the OHA dismissed a protest of
another firm's SDVOSB status because the original protest
alleged only that a joint venture was not an SDVOSB when the
regulations only require that one of its members have that
status, and the protester could not cure the original defect
by adding untimely allegations during its appeal.
In
VSBC Appeal of EHMT LLC, the OHA dismissed an
appeal of a denial of SDVOSB certification because the
appeal did not allege any specific errors in the original
decision.
In
VSBC Protest of Triaxx Land Management LLC, the
OHA dismissed a protest as untimely, after the protester
essentially conceded the point by failing to respond to a
Show Cause notice.
In
VSBC Appeal of Sharp Solutions, Inc., the OHA
dismissed an appeal of a denial of SDVOSB certification
because there was no allegation of error in the original
decision, and the appellant's attempt to amend its bylaws to
cure the original problem came too late. The OHA reached
essentially the same conclusion in
VSBC Appeal of Gnosis Concepts, Inc.
The OHA
dismissed the
HubZone Appeal of Le
Centre Evalgeline Corp., because the appeal did not
pertain to a HUBZone status protest, was not accompanied by
a copy of any formal protest determination made by the
Director of SBA's Office of HUBZone (the "Director") in
connection with a HUBZone status protest, did not include a
representation that the appellant was either the protested
concern or the protestor for a HUBZone procurement affected
by a HUBZone protest, was not served on the Director and
other required parties, and did not allege errors on the
part of the Director. |
September 20 |
The GAO sustained a protest by
Maxim Healthcare Staffing Services, Inc. because (at
least in the GAO's view) the Christian doctrine does not
apply to solicitations, so the protester should not have
been disqualified for a lapsed SAM registration because
neither the underlying IDIQ contract nor the solicitation at
issue contained mandatory FAR clause 52.204-7 ("System for
Award Management"), requiring an active SAM registration at
the time of the submission of its offer.
In
VSBC Appeal of Sprout Technologies, LLC, the
SBA's OHA upheld the denial of a firm's certification as an
SDVOSB because provisions in the Operating Agreement
requiring unanimous consent by all firm members (including a
non-SDV) to certain actions demonstrated a lack of control
by the SDV, which could not be cured on appeal. Similarly,
in
VSBC Appeal of Facekay LLC, the OHA upheld the
denial of a firm's certification as an SDVOSB because the
Operating Agreement could not be amended without the consent
of a non-SDV, which meant the SDV lacked the requisite
control.
In VSBC
Appeal of CPMC, LLC, the OHA vacated the
decertification of firm as an SDVOSB because the record did
not establish that the SBA had followed the requisite
procedures set forth at 13 C.F.R. § 128.310(a), by issuing a
Notice of Proposed Decertification to the firm and affording
it an opportunity to reply. |
September 18 |
In
Superior Optical Labs, Inc., which involved unsuccessful
consolidated preaward protests, the Court of Federal Claims
upheld the agency's rejection of the protester's proposals
for two VA solicitations set-aside for VOSBs because they
did not include the proper certification of compliance with
the limitations on subcontracting rules required by VAAR §
852.219-76(d).
In Oak
Grove Technologies, LLC, the Court of Appeals for the
Federal Circuit vacated the prior
CoFC decision
favoring the original protester because: (i) under Blue
& Gold Fleet, the original protester waived its
argument that the agency should have conducted discussions
because the agency's intent not to do so was clear from the
solicitation; (ii) an offeror's failure to provide a teaming
agreement with its proposal did not violate a "material"
solicitation requirement because, inter alia, such
agreements were to be provided in an administrative volume
that was not to be evaluated; (iii) the CoFC was required
to, but failed, to provide deference to the agency's
investigation of an alleged conflict of interest, which was
adequate; and (iv) the record was inadequate for the CoFC to
conclude that another offeror was financially incapable of
performing--if there were a question about responsibility,
it should have been referred to SBA. The court, however,
upheld the
CoFC's sanctions against the Government for discovery
violations.
In Contrack
Watts, Inc.-Uejo Kogyo K.K, a decision labeled as
nonprecedential, the Court of Appeals for the Federal
Circuit upheld the
prior ASBCA decision dismissing an appeal by a joint
venture because the underlying claim had not been submitted
by a party authorized to bind the joint venture.
In
Petro Mex, LLC, another decision labeled as
nonprecedential, the CAFC reversed the prior
CoFC decision that a breach claim was barred by the CDA's
six-year limitations period because the breach of contract
claim for wrongful termination could not have accrued until
the actual termination. |
September 16 |
In
Mindseeker, Inc., the ASBCA held that the contractor's
submissions for downtime losses, even though labeled as an
REA, met the definition of a claim because the submissions
included detailed factual bases for the claim and a sum
certain (while its requests for compensation for future
downtime did not qualify as claims because they were not for
something currently due as a matter of right and did not
include a sum certain). The Board further found that the
submission for downtime losses included the four statements
required for a proper CDA certification, and the submission,
when read in the context of the surrounding circumstances,
requested a decision from the Contracting Officer.
In
CB Portable Toilet Rental and Services, a decision limited
to quantum after a prior decision on entitlement concerning
a T for C claim in a contract for the delivery and
maintenance of portable toilets and hand washing stations
for use at Camp Lejeune, the ASBCA found that of a more than
$1.3 million claim, the contractor was entitled only to
recover $5,150 for changed work and $10,000 start-up costs
because: (a) many claimed costs related to efforts during
contract performance that already were subsumed in the price
paid for completed work; (b) the CARES Act did not apply to
a contract awarded after its applicable period; (c) there
was no entitlement for delay costs because the previous
entitlement decision had found no delay; (d) the claim for
the alleged disposal of equipment lacked any proof; (e)
there was no proof of the incurrence of alleged costs for
waste removal, moving equipment, cutting up the toilets,
removing hazardous material, and hazard pay; and (f) there
was no support for claims for a bonus for the contractor's
owner, flat payments for three offices, liability and
vehicle insurance, workers compensation, utilities,
maintenance, and travel and food. |
September 15 |
In
Targe Logistics Services Co., which involved a contract
with the Army to supply aviation fuel to Afghanistan
military aircraft and claims for costs incurred after the
Afghan government collapsed and the Taliban took over, the
ASBCA held that: (i) where the contract provided for
compensation only for fuel actually delivered into
designated aircraft, the Taliban's confiscation of
undelivered fuel was not the responsibility of the Army
because the contract clearly allocated the risk of loss to
the contractor; (ii) the Army did not fail to provide
security under the "Security Requirements" section of the
contract, which stated the contractor was responsible for
it; (iii) the local commander rather than the Army was
responsible for providing access to the relevant facilities;
and (iv) the United States' agreement with the Taliban to
exit the country was a sovereign act, shielding the
Government from liability. |
September 13 |
In
MLU Services, Inc., the CBCA: (i) granted the
Government's motion to dismiss a claim for nonpayment of
invoices because, at the time the claim was submitted to the
Contracting Officer, the contractor had not submitted the
invoices in accordance with the contract's clear
requirements for how to do so, and the contractor's alleged
excuses for its failure lacked a factual basis; (ii) held
that submitting the invoices more than six months after the
original claim was filed and just days before the
Contracting Officer issued a decision on the claim did not
relate back to the original claim; (iii) found that the
Contracting Officer's decision alleging a fraud claim
against the contractor pursuant to 41 U.S.C. § 7103(c)(2)
was void and unenforceable because such claims are not to be
handled in the CDA's dispute resolution process; and (iv)
held it lacked jurisdiction over other Government claims
first presented on appeal and not the subject of a
Contracting Officer's decision.
In another
Framaco Int'l Inc. decision, the CBCA denied a claim for
the costs of allegedly out-of-scope landscaping work because
the requirement was clarified for bidders prior to contract
award and the contractor did not object. Moreover, the
contractor offered no support for its allegations of
differing site conditions.
In
NoMuda, Inc., the CBCA allowed the appellant to amend
its Complaint to clarify the name of the real party involved
in the appeal absent any objection from the Government: "But
[the Government] does not oppose appellant’s motion, and we
will not invent arguments in opposition."
The SBA
has revised its size standards methodology white paper,
entitled "SBA’s Size Standards Methodology (June 2024),"
which explains how it establishes, reviews, and revises
small business size standards. The 2024 Revised Methodology
is available on the SBA’s website at www.sba.gov/size. |
September 11 |
The GAO sustained a protest by
Cadre5, LLC, because: (i) the agency provided no
explanation either in contemporaneous or in post-protest
documentation to support the reasonableness of its rating of
the protester's quotation for technical understanding; and
(ii) the best value tradeoff evaluation relied only on
differences in the underlying adjectival ratings without any
additional analysis of the significance of those
differences.
In
Zolon PCS II, LLC, a successful protest against an agency
decision during corrective action, the Court of Federal
Claims held that the agency provided no rational basis for
issuing an individual deviation removing the continuous SAM
registration requirement imposed by FAR 52.204-7(b)(1)
(which requires offerors to be continuously registered in
SAM from the time of submission of initial proposals) in
order to keep original awardees in contention for the award.
In
Associated Energy Group, LLC (d/b/a AEG Fuels), an
unsuccessful preaward protest of foreign licensing and
pricing requirements included in an agency’s resolicitation
of a three-year, firm fixed-price contract to supply
contract automotive, diesel, and jet fuel to a United States
military base and nearby airfield located in the Republic of
Djibouti, the court held that the requirements had a
rational basis given Djibouti's requirements concerning,
inter alia, Petroleum Activities Licenses. |
September 10 |
In
Size Appeal of Junius J. Dion d/b/a Risen Video
Production, the SBA's OHA upheld the Area Office's
finding of a violation of the ostensible subcontractor rule
because the prime contractor/appellant would perform only
project management functions, supervising the role of its
subcontractor, and the appellant failed to prove (a) that
the subcontractor was a Professional Employer Organization
with which the appellant had something other than a
prime/sub relationship or (b) that the appellant would
comply with the "Limitations on Subcontracting" clause.
In
VSBC Appeal of McLellan Integrated Professional
Services, LLC, the OHA denied a firm's appeal of
its SDVOSB decertification because the firm had failed to
respond properly to numerous program examination inquiries
and could not cure its failures on appeal. |
September 9 |
In
Island Creek Assocs., LLC, an unsuccessful post-award
protest, the Court of Federal Claims (while recognizing
there were differing opinions among CoFC judges concerning
the appropriate standard of standing to apply in these
situations) held that an awardee of a MAC contract award
lacked standing to protest the agency's modification to the
MAC (which the protester claimed gave an unfair advantage to
mentor-protégé JVs and their member companies) because the
protester was no longer an actual or prospective offeror
and could not show direct economic injury.
In
The Gilchrist Law Firm, P.A., the CBCA held it lacked
jurisdiction over the premature appeal of a Contracting
Officer's letter stating that it was "highly likely" that
the contractor's claim for PPA interest would be denied.
In
Framaco Int'l, Inc., which involved contract
interpretation, the CBCA upheld the denial of a claim for
the costs of installing a lightning protection system in a
contract for the construction of an embassy compound because
the contractor's initial work did not comply with the
contract requirements, and the Government's approval of shop
drawings did not relieve the contractor of its obligation to
comply with those requirements.
In another
Framaco Int'l, Inc. decision involving the same
contract, the Board held that, although the contractor's
interpretation of the contract requirement to provide an
updated basis of design was either not within the zone of
reasonableness or involved a patent ambiguity about which
the contractor had failed to inquire, the amount of the
Government's deduction for the contractor's alleged failure
to provide this updated basis of design could not be
sustained because, inter alia, it was based on the
contractor's estimate for obtaining progress payments when
the applicable clause stated: "The values in the Detailed
Estimate will be used as a basis for determining progress
payments, but will not be conclusive as to the amounts due
the Contractor or as to the value of changes in the work." |
September 6 |
In
Sergent's Mechanical Systems, Inc., the Court of Federal
Claims upheld a default termination of a contract to perform
certain HVAC work on a VA hospital because the contractor
failed to prove excusable delay. Specifically, (i) the
contractor failed to prove that its unambiguous contractual
responsibility for abating asbestos somehow was transferred
back to the Government during contract performance; (ii) the
contract contained a clear requirement concerning the
required diameter for the cooling coils that the contractor
was to replace in the HVAC units, and the fact that that
requirement was found by following a reference in another
section of the contract did not make the contract ambiguous;
(iii) the contractor provided no evidence that its
difficulties with the cooling coils caused its claimed
32-day delay, and the contractor did not provide a critical
path analysis from which the extent of any delay could be
derived; (iv) given the contract's language warning the
contractor against disruptions to existing hospital
operations, the VA was within its discretion to limit the
number and duration of power outages caused by the
contractor's construction work; and (v) the VA properly
compensated the defaulted contractor only for completed work
and accounted accurately for the excess reprocurement
costs. |
September 4 |
FAR Case 2023-003: A proposed rule would amend the FAR
to implement section 2 of the Construction Consensus
Procurement Improvement Act of 2021, which, in turn, amended
section 402 of Title IV of Division U of the Consolidated
Appropriations Act, 2021 (entitled "the Construction
Consensus Procurement Improvement Act of 2020") to require
rulemaking to promulgate a definition of "complex,
specialized, or substantial design and construction
services," to include site planning and design,
architectural and engineering services, interior design,
performance of substantial construction work for facility,
infrastructure, and environmental restoration projects, and
construction or substantial alteration of public buildings
or public works. The statute prohibits the use of reverse
auctions for such services having a value that exceeds the
simplified acquisition threshold. Comments are due by
October28.
Federal Acquisition Circular (FAC)
2024-07 has been published and includes the following
item plus technical amendments:
FAR Case 2023-005: Effective September 30, a final rule
amends the FAR to to align the penalties language at FAR
52.203–11 ("Certification and Disclosure Regarding Payments
to Influence Certain Federal Transactions") with the
equivalent penalties language at FAR clause at 52.203–12
("Limitation on Payments to Influence Certain Federal
Transactions"). |
September 3 |
In
RTD Middleburg Heights, LLC, a partially successful
post-award protest of the agency's reevaluation in a
procurement to lease building space, the Court of Federal
Claims: (i) remanded the case to the agency for additional
explanation of its price evaluation because agency had not
not provided sufficient documentation to enable the court to
evaluate the validity of the protester's claim of disparate
treatment in the price reevaluation; but (ii) held that (a)
the agency's use of cost-benefit analysis was permissible
and did not prejudice the protester, and (b) the protester
had failed to prove that it was prejudiced by the agency's
admitted error of using the wrong midpoint-of-construction
date in its price analysis.
In
Repeat Consultants Int'l, LLC, an unsuccessful post-award
protest, the court held that: (i) the use of the word
"exclusive" in multiple letters of commitment from fuel
suppliers did not amount to a material misrepresentation by
offerors as to the availability of fuel and did not render
the proposals technically unacceptable; (ii) during
corrective action, the agency had adequately investigated
the protester's Procurement Integrity Act allegations
against its competitors and had a rational basis for
concluding the allegations were unsubstantiated; (iii) the
price realism analysis, which compared the three offered
prices to one another, was adequate; and (iv) the agency
used the correct standard in making its responsibility
determinations and made an affirmative findings of
responsibility. |
August 29 |
In
DSME Constr. Co., Ltd., despite a clause in the contract
providing for a non-CDA process for disputes resolution, the
ASBCA held it had CDA jurisdiction over a contract funded by
the Republic of Korea because it was executed by a U.S.
Contracting Officer on behalf of an executive agency and was
for the benefit of the United States.
In
Platinum Services, Inc., the ASBCA dismissed an appeal
because: (i) the underlying claim for payment of 26 routine
invoices was not filed with the Contracting Officer until
more than six years beyond the date when the last invoice
was submitted and the Government's obligation to pay it had
become due (30 days after submission); and (ii) there was no
grounds (including an alleged computer crash) for equitably
tolling the CDA's six-year limitations period.
In
Direct Steel, LLC, a decision under the ASBCA's
Accelerated Procedure rule 12.3, the Board denied all the
contractor's construction contract claims, holding,
inter alia, that: (i) the contract (which stated the
contractor was to be responsible for "any costs" resulting
from its choice of a pre-engineered metal building)
unambiguously required the contractor to bear all costs of
redesign and construction of the foundation caused
by the contractor's choice of the building; and (ii) metal
studs installed by contractor did not meet the clear
contract requirements and were not equivalent to required
items, notwithstanding the contractor's (and its expert's)
contrary opinion. |
August 27 |
In
BCG Federal Corp., an unsuccessful preaward protest
against the terms of the GSA's OASIS+ MAS solicitation, the
Court of Federal Claims held, inter alia, that: (i)
in a solicitation covering both commercial and noncommercial
services and various contract types, the agency's market
research was appropriate to the circumstances and adequate
under both FASA and FAR Part 10, and the agency's conclusion
that the master contract should be considered non-commercial
(because classifying it as commercial would not allow
issuance of cost-type task orders) had a rational basis; and
(ii) requiring offerors to submit indirect cost data did not
violate FAR subpart 15.4 because the Contracting Officer had
a rational basis for concluding that such data was needed to
establish price reasonableness. |
August 26 |
In
NAICS Appeal of Radiance Technologies, Inc.,
the SBA's OHA held that in an OASIS Small Business Pool 4
MAC solicitation set aside for small businesses and seeking
to procure systems engineering and technical assistance, the
Contracting Officer's choice of NAICS code 541715 ("Research
and Development in the Physical, Engineering, and Life
Sciences (except Nanotechnology and Biotechnology)") with a
corresponding 1,000 employee size standard was preferable to
the appellant's choice of Exception 3 to that same NAICS
code 541715 ("Guided Missiles and Space Vehicles, Their
Propulsion Units and Propulsion Parts") with a corresponding
1,300 employee size standard because the procurement did not
call for research and development into missiles or
spacecraft.
The SBA proposes
to amend its regulations governing the HUBZone Program
to clarify certain policies. For example, the rule proposes
to require any certified HUBZone small business to be
eligible as of the date of offer for any HUBZone contract.
SBA also proposes to make several changes to SBA’s size and
8(a) Business Development regulations, as well as some
technical changes to the WOSB and VetCert programs. For
example, the proposed rule would delete the program specific
recertification requirements contained separately in SBA’s
size, 8(a) BD, HUBZone, WOSB, and VetCert regs and move them
to a new section that would cover all size and status
recertification requirements, in order to ensure that the
size and status requirements will be uniformly applied.
Comments are due by October 7. |
August 23 |
Knudsen Systems, Inc. won its GAO protest against the
agency's
decision to restrict a
solicitation to small businesses because the
agency’s market research was insufficient to conclude that
the agency would likely receive proposals from at least two
responsible small business concerns that could meet
solicitation’s requirements at a fair market price. |
August 22 |
In
KMK Construction, Inc., the CBCA held that, in an appeal
of a Contracting Officer's decision asserting a government
monetary claim, the Board lacked jurisdiction over the
contractor's monetary counterclaim not previously presented
to the Contracting Officer for a decision.
In
BlueIce Constr. LLC, the CBCA upheld the termination for
cause of a contract to remove and replace the glycol in the
heating system of government building because the contractor
did not perform any contract work onsite, failed to respond
to the Government's request for an update and to the
Government's show cause notice, and did not present any
convincing evidence of a valid excuse for its failure to
perform. |
August 21 |
In
NAICS Appeal of Mission Analytics, LLC, the
SBA's OHA held that in a solicitation to acquire a dual view
LED display system, the Contracting Officer's choice of
NAICS 334310 ("Audio and Video Equipment Manufacturing"),
with a corresponding 750 employee size standard, was
appropriate and preferable to appellant's alternative
suggestions of NAICS 541519 ("Other Computer Related
Services (Exception), Information Technology Value Added
Reseller") with a corresponding 150 employee size standard,
or NAICS 334419 ("Other Electronic Component
Manufacturing"). |
August 20 |
The SBA's OHA dismissed an appeal by
Chips Renovations LLC concerning the denial of its
certification as an SDVOSB because (a) it did not allege
errors in the original denial decision, and (b) the appeal
was based on documentation corrected after that decision.
Ditto for an appeal by
SSC Construction Management, LLC. Similarly, in
VSBC Appeal of Patton Myhre Sourcing, LP, the
OHA dismissed another appeal of the denial of SDVOSB
certification because it was not signed by appellant or its
attorney, did not allege errors in the original decision,
and requested help in achieving SDVOSB certification.
In VSBC
Protest of Northern Purchase Services, LLC, the OHA
dismissed the protest of a firm's SDVOSB status because it
lacked specificity and merely requested an investigation
into that status.
In
EFC Services, Inc., the Court of Federal Claims denied
cross motions for summary judgment concerning the propriety
of the default termination of a lease because of factual
issues concerning the interpretation of relevant lease terms
which are necessary to resolve before the court can
determine whether the Government breached the lease. |
August 19 |
In
VSBC Protest of Elevated Technologies, Inc.,
although the SBA's OHA denied a challenge to a firm's SDVOSB
status (finding that an SDV had the requisite ownership and
control), the OHA held that in a solicitation for a services
contract for elevator maintenance services, where the
challenged firm conceded that its non-SDVOSB subcontractor
would perform the primary and vital contract requirements
and where the challenged firm had not demonstrated that it
would comply with the "Limitations on Subcontracting"
clause, it was ineligible for an award due to the ostensible
subcontractor rule.
In
Size Appeal of Kupono Government Services, LLC,
the OHA remanded a case involving an alleged violation of
the ostensible subcontractor rule to the Area Office for a
new determination because the agency had undertaken
corrective action on the procurement while the original case
was pending to permit the submission of new cost proposals,
so the Area Office's original determination was not based on
the current documents.
In
Size Appeal of S3-RQ JV, which involved
allegations of affiliation, the OHA remanded the case to the
Area Office because it had not adequately considered whether
the challenged firm's owner controlled an alleged affiliate
under the multiple minority shareholder rule at 13 C.F.R. §
121.103(c)(2). |
August 18 |
Effective September 16, a final rule makes
extensive revisions to the DOL's acquisition regulation
(DOLAR) (a) to remove provisions that were redundant or
obsolete, (b) to codify the use of certain contractual
provisions that the DOL has developed and deployed in recent
years concerning, inter alia, government property,
continuity of operations, system requirements, records
management, telework policy for contractor personnel,
submission of invoices, mandatory training for contractors,
organizational conflicts of interest, and notification of
changes to the scope of a contract, (c) to clarify certain
provisions, and (d) to remove provisions that were DOL
internal operating procedures.
DFARS Case 2023-D014: A final rule amends the DFARS to
implement section 1411 of the NDAA for FY 2023, repeals 10
U.S.C. 187, which established the Strategic Materials
Protection Board, and amends section 10 of the Strategic and
Critical Materials Stock Piling Act to establish the
Strategic and Critical Materials Board of Directors.
Therefore, this final rule removes the name "Strategic
Materials Protection Board" and inserts the new name
"Strategic and Critical Materials Board of Directors" in the
DFARS.
DFARS Case 2024-D024: A final rule amends the DFARS to
align it with the FAR by (a) changing the title of DFARS
part 223 to "Environment, Sustainable Acquisition, and
Material Safety" and the title of subpart 223.3 to
"Hazardous Material Identification, Material Safety Data,
and Notice of Radioactive Materials," (b) adding subpart
223.1 ("Sustainable Products and Services") and moving the
content from subparts 223.4 and 223.8 to this newly added
subpart., and (c) moving the content of subpart 223.5
("Drug-Free Workplace") to newly added subpart 226.5
("Drug-Free Workplace"), which also involves relocating the
contract clause at DFARS 252.223– 7004 ("Drug-Free Work
Force") to DFARS 252.226–7003 ("Drug-Free Work Force").
DFARS Case 2019-D041: A proposed rule would amend the
DFARS to incorporate contractual requirements related to the
proposed Cybersecurity Maturity Model Certification 2.0
program rule, Cybersecurity Maturity Model Certification
Program and to partially implement a section of the NDAA for
FY 2020 that directed the Secretary of Defense to develop a
consistent, comprehensive framework to enhance cybersecurity
for the U.S. defense industrial base. Comments are due by
October 15.
DFARS Case 2024-D023: A proposed rule would amend the
DFARS to implement sections of the NDAA for FY 2024, which
amended a section of the NDAA for FY 2021 that provides for
the limitation of funds, authorized to be appropriated or
otherwise made available for any fiscal year for DoD, to be
provided to an institution of higher education that hosts a
Confucius Institute, which is defined as any program that
receives funding or support from the Chinese International
Education Foundation, the Center for Language Exchange
Cooperation of the Ministry of Education of the People’s
Republic of China, or any cultural institute funded by the
government of the People’s Republic of China. Comments are
due by October 15. |
August 16 |
In
The Tolliver Group, Inc., an unsuccessful post-award
protest, the Court of Federal Claims was faced with a
protest by the original winner of the procurement which had
been overturned because (in
DigiFlight) the court had found the price realism
analysis had been flawed. After corrective action, the
original protester had been selected for award, and now the
original winner is protesting the price reasonableness
evaluation.
The court holds that (despite some errors
in the agency's analysis): (i) using FAR 15.404-1(b)(2) to
conduct a "robust" price reasonableness evaluation (by
comparing offered prices) was proper, as was the separate
determination that adequate price competition existed. The
court also holds that the use of the IGCE was appropriate
for the price analysis:
While "tie goes to the runner" may be an improper recitation
of the rules of baseball, tie goes to the government may
best describe this bid protest. . . . For the reasons
that follow, the Court determines that the protestor . . .
has not met its burden to show the agency acted in a manner
that was arbitrary, capricious[], an abuse of discretion, or
otherwise not in accordance with law. Although [the
protester] has demonstrated shortcomings with individual
aspects of the price reasonableness analysis, it has not
demonstrated that, as a whole, the price reasonableness
analysis was irrational.
. . .
In sum, contrary to [the protester's] position, the
contracting officer did not "[do] exactly what [the sources
the protester relies on] say the government can never
do—assume prices are fair and reasonable just because there
is competition." . . . Rather, the contracting officer
conducted a robust comparison of the offerors’ prices in
which he broke down the prices and option periods compared
to each other, found the composite labor rate, and compared
the prices inclusive of the six-month extension option. . .
. That alone would be enough to satisfy the FAR. But
the contracting officer further found there was adequate
price competition. . . . This "normally" is a stand-alone
technique to find prices fair and reasonable. See
48 C.F.R. § 15.404-1(b)(2)(i). . . . [The protester] has
offered the Court nothing that satisfies [its] burden to
show that the price comparison under FAR § 15.404-1(b)(2)(i)
was irrational. [citations omitted] |
August 15 |
The GAO sustained a protest by
HPI Federal, LLC
because the agency’s acceptance of a firm's representation
that several quoted items complied with the Trade Agreements
Act was unreasonable where the representation did not state
that the end products to be delivered were U.S.-made,
qualifying country, or designated country end products, but
only stated that the quoted items were assembled in a
designated country. |
August 14 |
In
BAE Systems Technology Solutions & Services, Inc., the
ASBCA held that the agency had not breached the contract
when it failed to reimburse incurred pension withdrawal
liability costs pursuant to any of the following provisions
relied on by the contractor: (i) FAR 52.222-43 covering SCA
price adjustments, because of the CAFC's binding precedent
in
Call Henry; (ii) FAR 52.237-3 covering phase-outs, because
the contractor did not perform any work after contract
expiration; (iii) FAR 31.205-7 concerning unquantifiable
contingencies, because this contract did not provide for the
recovery of such costs; or (iv) FAR 52.215-15, which covers
segment closing costs, because the contractor conceded there
was no segment closing. |
August 13 |
In
MetroIBR JV LLC, the Court of Federal Claims held that
the plaintiff/protester had presented sufficient evidence
(in the form of affidavits) of possible bias by the agency
in evaluating bids to warrant granting part of the
plaintiff's motion for additional written discovery
concerning the evaluators' files and its motion to conduct
depositions of agency personnel, but the court held there
was not a sufficient showing to justify discovery of the
intervenor's files.
The Department of Health and
Human Services is proposing to amend and update its
acquisition regulation (HHSAR) to implement requirements to
procure
health information technology that meets standards and
implementation specifications adopted by the Office of the
National Coordinator for Health Information Technology in
the following parts: Acquisition of Information Technology
and Solicitation Provisions and Contract Clauses. Comments
are due by October 8. |
August 12 |
In
Advanced Simulation Technology Inc., an unsuccessful
protest, the Court of Federal Claims held that the
Government's actions in further improving government
software that it began developing 20 years ago without
issuing any solicitations or requests for information did
not constitute a protestable procurement or proposed
procurement, and a protest against possible future
procurements was not ripe. |
August 9 |
In
VSBC Protest of Systematic Innovations, LLC,
the SBA's OHA denied multiple challenges to various aspects
of an SDVOSB JV agreement, including, inter alia,
allegations as to when it was executed, the reuse of
signature pages, and whether it described the duties of its
members adequately for an IDIQ contract. |
August 8 |
In
Y2Fox, Inc., the CBCA upheld a termination for cause
because the contractor failed to deliver system design
documentation required by the contract, but the Board also
held that the contractor was entitled to payment for work
that had been accepted by the Government. Subsequently, the
Board
denied the contractor's request for reconsideration.
In
United Facility Services Corp., the CBCA held that the
O&M contractor for a building breached its contractual
obligation to "be responsible for any necessary operation
and prevention of damage to equipment during on and off duty
hours . . . due to inclement weather . . . or freezing
temperatures" by failing to monitor pipes that froze and
burst (or to reduce the possibility that they might freeze)
where the effects of reasonably foreseeable freezing
temperatures could have been mitigated or avoided.
GSAR Case 2024-G503: Effective September 3, a final rule
amends the GSAR to update language concerning sustainable
leasing requirements.
A proposed rule would amend the
Department of Homeland Security's acquisition regulation
(HSAR) to eliminate provisions forbidding the award of
contracts to educational institutions that prohibit
ROTC or military recruiting on campus because those
provisions are adequately addressed in the FAR. Comments are
due by September 30. |
August 7 |
In
Erik Robinson d/b/a The Artwork Factory, which involved an
alleged concession contract with AAFES, the ASBCA: (i)
granted the Government's motion to dismiss a claim for
specific performance for lack of jurisdiction; but (ii)
denied a similar motion to dismiss a claim for breach of an
alleged implied-in-fact contract prior to a decision on the
merits because the appellant plausibly "alleged" the
existence of a contract, which was all that was required to
establish jurisdiction.
The CBCA issued four decisions involving issues of
contract interpretation concerning a contract with the
Department of State to construct an embassy compound in Port
Moresby, Papua New Guinea. In
one, the CBCA held that the contractor was entitled to
its costs of complying with the Government's direction to
install an X-ray machine at a rear entrance that functioned
as the main shipping/receiving location and the official
vehicle fleet entrance because the contract only required
the contractor to install X-ray machines at building
entrances that "admit the public."
However, the CBCA denied the contractor's claims in three
other decisions. First, the CBCA
denied
the contractor's claim for providing fire-retardant-treated
plywood for partition walls and ceilings in areas
purportedly not specified in the contract because the
contract specifications (which took precedence over the
drawings) unambiguously required its use in those areas.
Secondly, the CBCA denied the contractor's claim for excess
costs resulting from an alleged government directive for the
sole-source procurement of a
kitchen exhaust hood
allegedly outside the scope of contract because contractor's
submissions requesting substitutions were late according to
the contract requirements and were deficient as well.
Finally, the CBCA denied the contractor's claim for the
costs of modifying and relocating
residual current device enclosures because: (i) the
Government's acceptance of submittals did not relieve the
contractor of its responsibility to meet the contract's
requirements; (ii) the contract unambiguously required the
enclosures to be both (a) guarded by dead front panels or
another mechanism that would protect the devices against
incidental contact and (b) readily accessible; and (iii)
there was a patent ambiguity concerning where the items
should be located about which the contractor had failed to
inquire.
|
August 5 |
In
Size Appeal of Truveta, Inc., although
redactions make the precise facts difficult to discern, the
SBA's OHA held that the Area Office had erred in finding
affiliation under the newly organized concern rule (13
C.F.R. § 121.103(g)) because, under the fourth prong of the
test, a large business could not be considered to be
furnishing financial assistance to the challenged firm based
solely on what was merely a one-time, arms-length
transaction regularly offered to prospective customers as a
way to attract business, which the challenged firm had not
accepted and was under no obligation to do so. |
August 1 |
In
VSBC Appeal of Snowfensive, LLC, the SBA's OHA
upheld the denial of a firm's certification as an SDVOSB
because the limits on the SDV's power to control in the
firm's operating agreement were not among the five allowable
"extraordinary circumstances" listed in 13 C.F.R. §
128.203(j).
Federal Acquisition Circular (FAC)
2024-06 has been published and includes the following
three items (plus technical amendments):
FAR Case 2023-007: Effective August 29, a final rule
amends the FAR to implement section 822(a)(3) of the James
M. Inhofe NDAA for FY 2023, which increased the
Congressional committee notification threshold under Public
Law 85–804 (41 U.S.C. 1431) to $150 million.
FAR Case 2021-009: Effective August 29, a final rule
amends the FAR to implement regulatory changes made by the
SBA to update and clarify requirements associated with size
and socioeconomic status protests in connection with
multiple-award contract set-asides and reserves, and orders
placed under multiple-award contracts
FAR Case 2015-038: Effective August 29, a final rule
amends the FAR to provide guidance on the use of reverse
auctions. |
July 31 |
In
Size Appeal of Kako'o Spectrum Healthcare Solutions, LLC,
the SBA's OHA remanded the case to the Area Office because
its size determination had been based on an outdated version
of the challenged firm's JVA agreement, which had been
revised before final proposal revisions were due.
In Size Appeal
of Magnolia Contracted Services, the OHA held that
a size protest merely asserting that the challenged firm
"has publicly reported revenue estimates in excess of $49
million annually and has raised over $90 million in venture
capital” (without even specifying the time period to which
the allegations pertained or identifying any source for the
allegations) was properly dismissed as nonspecific. |
July 30 |
In
GEMS Environmental Management Services, the ASBCA denied
several parts of cross motions for summary judgment due to
open issues, but did hold that: (i) in a matter of contract
interpretation, the disputed phrase "shall be provided" in
one section of the contract should be given the same meaning
that the parties agreed the same phrase clearly had in
another section of the contract; (ii) the contractor's delay
claim was precluded by the "sovereign acts" doctrine because
the decision to change the system for issuing passes to
allow access to a facility was aimed at all visitors to the
installation, concerned a government function (installation
security), and was not to the Government’s benefit as a
contracting party; (iii) the contractor was not entitled to
its costs of preparing a relatively minor RFP that was
subsequently determined to be unnecessary by the Government;
and (iv) the contractor was not entitled to Prompt Payment
Act interest when the Government withheld money as retainage
due to project delays. |
July 29 |
The Department of Homeland Security proposes to
amend
its acquisition regulation (HSAR) provision that relate to
the Kissell Amendment (a section of the American Recovery
and Reinvestment Act of 2009 that deals with the acquisition
of certain clothing, canvas or textile products and natural
and synthetic fabrics) in order to reduce confusion and
provide clarity to the requirements under that Amendment.
DFARS Case 2023-D007: A proposed rule would amend the
DFARS to implement section 802 of the NDAA for FY 2023,
which added (i) a requirement at 10 U.S.C. 3406(h)(1) for
DoD contracting officers to use qualification-based
selections when awarding task orders and delivery orders for
architectural and engineering services in accordance with
FAR subpart 36.6 and the Brooks Architect Engineer Act (ii)
a direction that prevents contracting officers from
routinely requesting additional information regarding
qualifications when awarding task orders or delivery orders
under a multiple-award contract. Comments are due by
September 27.
The Department of Agriculture proposes
to make administrative amendments to its acquisition
regulation (AGAR) to align the
AGAR with changes to acquisition law, regulations, and
internal USDA policies since the AGAR’s last major revision.
There are many aspects that are no longer relevant and are
consequently deleted or revised as necessary. Also, there
are various parts of the FAR that have been updated since
the AGAR’s last revision, many of which compel USDA to
establish agency-specific guidance on how to comply with the
newer FAR requirements. Comments are due by August 26. |
July 26 |
In
Quality Trust, Inc., the ASBCA dismissed an appeal of a
termination for cause as moot because the Contracting
Officer had converted it to a termination for convenience.
In
Logistics and Rental Car SARL, the ASBCA dismissed: (i)
four subclaims addressed in a prior Contracting Officer's
decision and but not timely appealed; and (ii) three other
subclaims because they were explicitly released in a
bilateral mod closing out a BPA. |
July 24 |
In
Adapt Consulting, LLC, the CBCA overturned a partial
default termination because the agency did not prove that
fault messages in a newly installed door security system
were caused by the contractor's allegedly defective system
or that the contractor had failed to cooperate with the
agency in adequately investigating the problem. The Board
also granted the contractor's claim for damages to its
equipment caused by planned power outages that were much
more severe than the contractor had anticipated.
Subsequently, the Board
denied the contractor's request for partial
reconsideration. |
July 23 |
In
RBVETCO, LLC, an unsuccessful post-award protest involving
a solicitation set aside for SDVOSBs, the Court of Federal
Claims held that: (i) the agency properly evaluated the
awardee's mentor-protégé JV under 13 C.F.R. 128.8(e) by
examining the strengths and weaknesses of the JV members in
the aggregate in accordance with the interpretation of that
provision recently stated by the court in
HealthRev, LLC; and (ii) the agency did not violate 13
C.F.R. 128.8(c) because that section applies to contract
performance, not to pre-contract evaluation, and the awardee
certified that it would meet all technical requirements,
including that the protégé had the capability to perform the
required 40% of the work, and there was no countervailing
evidence available to the evaluators. 13 C.F.R. 128.8(e)
reads as follows:
When evaluating the capabilities, past performance,
experience, business systems and certifications of an entity
submitting an offer for a contract set aside or reserved for
small business as a joint venture established pursuant to
this section, a procuring activity must consider work done
and qualifications held individually by each partner to the
joint venture as well as any work done by the joint venture
itself previously. A procuring activity may not require the
protégé firm to individually meet the same evaluation or
responsibility criteria as that required of other offerors
generally. The partners to the joint venture in the
aggregate must demonstrate the past performance, experience,
business systems and certifications necessary to perform the
contract. In
Legacy Corporation of Illinois, an unsuccessful protest,
the court held that the agency had a rational basis for (i)
referring the plaintiff to the SBA for a CoC based on
problems with the firm's past and ongoing performance and
(ii) declining to consider plaintiff's offer further after
the SBA declined to issue the CoC where the plaintiff had an
adequate opportunity to respond to the Government's concerns
at the SBA. The court rejected the plaintiff's arguments
that (i) the agency and SBA did not give adequate weight to
the plaintiff's corrective actions for the problems and (ii)
the agency was required to generate a CPAR before the matter
could be referred to the SBA. |
July 22 |
FAR Case 2024-004: A proposed rule would amend the FAR
to implement the following statutory amendments to rules
concerning combating trafficking in persons in federal
contracts: (i) Section 108 of the Justice for Victims of
Trafficking Act of 2015 amended the definition of "sex
trafficking" at 22 U.S.C. 7102 to clarify the range of
conduct considered sex trafficking; and (ii) Section 2 of
the End Human Trafficking in Government Contracts Act of
2022 amended 22 U.S.C. 7104b(c)(1) to require that, upon
receipt of an Inspector General’s report substantiating an
allegation of violations by a contractor or subcontractor,
the agency head refer the matter to the agency suspending
and debarring official. Comments are due by September 16.
In
Spectre Corp., the Court of Federal Claims granted the
Government's motion for partial summary judgment because the
plaintiff's failure to produce its updated expert reports
even with time extensions granted by the court left the
plaintiff without any evidence to support its claim for lost
profits.
In
Samsara Inc., an unsuccessful protest of corrective action
by the USPS, the court held that the agency (i) had
articulated a rational basis for limiting its corrective
action to addressing the problem identified by the court in
its previous decision and (ii) was not required to amend the
solicitation. |
July 18 |
In
Independent Rough Terrain Center, LLC, an unsuccessful
protest, the Court of Federal Claims held that although it
had jurisdiction over a protest concerning a follow-on
production contract issued under the Army’s statutory Other
Transaction ("OT") authority pursuant to 10 U.S.C. §§ 4021
and 4022, rather than under the FAR, because it was a
procurement for purposes of the court’s bid protest
jurisdiction (a holding of first impression), the protester
lacked standing because its SAM registration had lapsed
between the submission of proposals and award, in violation
of a solicitation requirement that offerors be registered at
the time of award. |
July 16 |
In
AirBoss Defense Group LLC and StringKing Lacrosse LLC, an
unsuccessful request for a preliminary injunction against
the terms of a revised solicitation, the Court of Federal
Claims held that in a solicitation for personal protective
equipment in the form of Level 2 isolation gowns to create a
stockpile of disposable gowns, the agency's decision to
modify the solicitation during corrective action so that
shelf life beyond three years would not receive any
additional evaluation credit had a rational basis, as did
the new deadline for the submission of revised proposals
after the modification. |
July 15 |
In
AccelGov, LLC and SLICOM JV, which involved consolidated
protests, the Court of Federal Claims held that one
plaintiff's protest should be denied because there was no
prejudicial error: (i) the solicitation did not require that
"engineering experience" be limited to experience after
receiving an engineering degree; (ii) there was no basis for
challenging the agency's assignment of a strength for a
proposed personnel's LEED training, especially where the
protester was also assigned a strength for LEED
"accreditation," and the solicitation required neither
training nor accreditation; and (iii) there was a rational
basis for agency to assign a strength for proposing a
transition manager when the solicitation did not require
one. As for the other plaintiff, the court held that the
source selection document's trade-off decision, which merely
recited that the awardee's price premium was worth it
because of its technical superiority, without more, was
circular and inadequate, and the case was remanded for
another trade-off decision.
In
ELB Services, LLC, which involved a challenge to a
prior decision by
the SBA's OHA that a joint venture was not an eligible
SDVOSB, the court held that: (i) the plaintiff's motion to
supplement the administrative record should be denied, in
part, because it would include documents not considered by
the OHA in its decision; (ii) the OHA did not err (a) by
refusing to dismiss the underlying protest based on
allegations of the protest's lack of specificity or (b) by
failing to adopt the underlying SBA determination on the
basis of collateral estoppel; but (iii) the OHA's decision
(that a joint venture agreement was deficient for lack of
specificity in defining its members' roles in the contract
at issue) was based on an incorrect reading of 13 C.F.R §
128.402(c)(7), which requires only only a reduced level of
specificity in the JV agreement whenever an indefinite
contract is involved. The applicable sentence from the
regulation reads as follows:
If a contract is indefinite in nature, such as an indefinite
quantity contract or a multiple award contract where the
level of effort or scope of work is not known, the joint
venture must provide a general description of the
anticipated responsibilities of the parties with regard to
negotiation of the contract, source of labor, and contract
performance, not including the ways that the parties to the
joint venture will ensure that the joint venture and the
certified VOSB or SDVOSB partner(s) to the joint venture
will meet the limitations on subcontracting requirements set
forth in paragraph (d) of this section, or in the
alternative, specify how the parties to the joint venture
will define such responsibilities once a definite scope of
work is made publicly available.
The court held that the phrase "where the level of effort or
scope of work is not known" applied only to the phrase
"multiple award contract" and not to the phrase "indefinite
quantity contract." |
July 12 |
In
Platinum Services, Inc., the Court of Federal Claims
denied the plaintiff's application for EAJA fees because the
plaintiff had lost on its claim that had by far the largest
dollar value, and the Government's litigation position had
been substantially justified on the novel question involved
in the smaller value claim on which plaintiff had prevailed.
In
Utility Constr. Co., the court: (i) denied the
Government's motion to compel the production of certain
documents because the Government failed to demonstrate that
there were any specific documents (or class of documents)
that existed, but that the contractor had failed to produce,
especially in light of the contractor's representation that
it had produced all documents; (ii) denied the contractor's
motion to compel production of certain documents concerning
which it had not yet made a discovery request; (iii) denied
the contractor's motion to compel responses to certain
interrogatories because the Government had made substantial
objections to those interrogatories; (iv) granted the
contractor's motion to compel production of certain
documents because the Government's response (that the
Government would produce a universe of documents
it deemed relevant) was improper; (v) granted the
contractor's motion to compel the production of documents
withheld due to an alleged deliberative process privilege
the Government now concedes was baseless; and (iv) ordered
the Government to show cause why it should not be sanctioned
for withholding those documents. |
July 11 |
In
Barbaricum LLC, a heavily redacted (due to classified
information), unsuccessful protest of the plaintiff's
exclusion from the competitive range, the Court of Federal
Claims held that: (i) under the deferential standard the
court must utilize, the agency's evaluation (that the
plaintiff's proposal for the production of Geospatial
Intelligence was technically unacceptable) had a rational
basis; (ii) the competitors' proposals were sufficiently
different from one another in that area that the agency
could not be found to have treated offerors disparately;
(iii) the plaintiff's failure to provide an analysis in the
area of "intelligence scenario response" required by the
solicitation justified finding that its proposal was
technically unacceptable in that area, too; (iv) even if
agency engaged in disparate treatment in evaluating this
latter section of the proposals, the plaintiff was not
prejudiced because the agency had another basis for finding
the proposal technically unacceptable; and (v) there was no
good cause to supplement the administrative record as
requested by the plaintiff. |
July 10 |
In
VSBC Appeal of Tower Sales and Consulting, the
SBA's OHA dismissed an appeal of a firm's decertification as
an SDVOSB because: (i) it was untimely and the fact that
notice of the proposed decertification was routed to the
firm's junk folder was not an excuse); and (ii) it was
deficient in failing to identify any errors in the
decertification decision. The OHA also denied the firm's
attempt to submit new evidence for the first time on the the
appeal.
In
the Matter of Allaires Management Information Technology
Consulting Firm LLC, the OHA dismissed the appeal
because it lacks jurisdiction over a decision by the SBA's
Director of Government Contracting to deny or decertify a
concern's participation in the WOSB program. |
July 8 |
GSAR Case 2022-G513: Effective August 2, a final rule
amends the GSA's Acquisition Regulation (GSAR) clause
552.232–1 ("Payments") because the GSA has no historical
information as to why it was created in the first place and
it conflicts with FAR clause 52.232–1 ("Payments").
GSAR Case 2022-G506: Effective August 2, a final rule
amends the GSAR to standardize the language used to identify
and communicate when there has been an approved FAR
deviation within the GSAR in order to provide consistency
for readers of the GSA's regulations.
In
Shoreline Foundation, Inc., the ASBCA, inter alia:
(i) granted the Government's motion for summary judgment
denying the contractor's defective specification and
misrepresentation claims because, interpreted as a whole,
the contract placed the risk on the contractor
of determining how future sea and weather conditions would
impact the cost and difficulty of the work; but (ii) denied
the Government's motion for summary judgment on the
contractor's superior knowledge claim because further
factual development would be needed to determine the
significance and relevance of a report concerning the site
conditions that the Government did not provide to the
contractor. Subsequently, the Board
denied the contractor's motion for reconsideration of the
decision on its misrepresentation claim.
In
Case Healthcare Solutions, Inc. d/b/a Case HCS of Reston,
Virginia, the ASBCA denied the Government's motions to
dismiss both: (i) Count I of Complaint for lack of
jurisdiction, holding that the claim submitted to capture
the contractor's collection fees on amounts billed but not
collected prior to the expiration of the contract was not a
routine request for payment where the contractor could not
submit a routine invoice for the claimed amounts under the
contract because it could only invoice for monies collected;
and (ii) Count II of the Complaint for common law breach
damages (as allegedly never having been submitted to the
Contracting Officer) because it was based on the same set of
operative facts as the claim previously submitted to the
Contracting Officer.
In
VSBC Protest of
Spartan Medical, Inc., the SBA's OHA held that the
challenged firm was noncompliant with 13 C.F.R. § 128.401(g)
governing the SDVOSB program in that it admittedly would
subcontract more than 50% of the services contract dollar
value to a non-SDVOSB firm. The cited regulation reads as
follows:
Ostensible subcontractor. Where a subcontractor that is
not a certified VOSB or SDVOSB will perform the primary and
vital requirements of a VOSB or SDVOSB contract, or where a
VOSB or SDVOSB prime contractor is unduly reliant on one or
more small businesses that are not certified VOSBs or
SDVOSBs to perform the VOSB or SDVOSB contract, the prime
contractor is not eligible for award of that VOSB or SDVOSB
contract. |
July 5 |
In
Avue Technologies Corp., (as I read it) the CBCA
originally held that it lacked jurisdiction over disputes
involving a software license agreement because that was not
a procurement contract under the CDA. However, the CAFC
vacated and remanded the decision because (as the CAFC
saw it), the plaintiff had alleged a contract with the
United States, which was sufficient to confer jurisdiction.
The court noted that in the positions taken in the parties'
briefs, it was unclear whether the contract was the software
license agreement or the underlying FSS contract or some
combination of the two. Now, on remand,
the CBCA (clearly uncertain about the reach of the
CAFC's decision) holds, in the alternative that:
(i) where the appellant licenses software that another
company sells under a GSA FSS contract, the software license
agreement is a contract, but it is not a procurement
contract, and, thus, the Board lacks jurisdiction; or
(ii) the appellant is not a contractor with the Government
and, thus, has no rights under the license agreement that it
can enforce against the Government.
The
2024
Procurement Review is up, and I will continue to update
it for the rest of the year. |
July 3 |
In
Associated Energy Group, LLC, an unsuccessful protest, the
Court of Federal Claims held that the plaintiff lacked
standing to protest a second sole-source bridge contract
extension because: (i) it failed to express interest in
the bridge contract by submitting a capability statement;
and (ii) it admittedly did not have the capability to timely
perform the bridge contract work. |
July 2 |
In
Size Appeal of RBVetCo, LLC d/b/a Rocky Bleier
Construction Group, the SBA's OHA affirmed the
dismissal of all eight grounds of a size protest because six
of them questioned the conduct of the procurement and were
outside the OHA's jurisdiction and the remaining two were
insufficiently specific. |
July 1 |
The GAO sustained a protest by
Sparksoft Corp.
because the agency conceded it had treated offerors
disparately in the evaluation of one key personnel position,
and the GAO concluded (despite the agency's denial) that the
error prejudiced the protester.
In
Tri Vet Contracting Co., the CBCA dismissed an appeal
for failure to state a claim because the FFP contract placed
the risk of material price increases (including those
allegedly caused by the COVID pandemic) on the contractor.
In
VSBC Appeal of Acorn Science & Innovation, Inc.,
the SBA's OHA held that the Director of the Veteran Small
Business Certification Program improperly added a
requirement for a showing of control not in the governing
regulations in denying a firm's application for SDVOOSB
status.
In VSBC
Protest of In and Out Valet Co., the OHA denied the
protest because: (i) despite having outside employment, the
SDV spent the requisite the number of hours each day
controlling the operations of the challenged firm; (ii) the
firm established it would contract only 40% of the work to a
subcontractor, which complied with "Limitations on
Subcontracting" clause; and (iii) other protest grounds
alleging improprieties in the conduct of the procurement (e.g.,
misevaluation of proposals) were outside the OHA's
jurisdiction.
In
VSBC Appeal of
JBELL LLC, the OHA upheld the denial of a firm's
certification as an SDVOSB because the applicant submitted
contradictory information concerning whether the SDV
controlled the firm, and a revised version of the Operating
Agreement not submitted until the appeal was too late. |
June 28 |
DFARS Case 2024-D019: Effective August 26, a final rule
amends the DFARS to implement section 2881 of the NDAA for
FY 2024, which increases the statutory fee limitation at 10
U.S.C. 7540, 8612, and 9540 from six to 10 percent that may
be earned by contractors providing certain architect and
engineering services under contracts with the Departments of
the Army, Navy, and Air Force.
DFARS Case 2021-D006: A proposed rule would amend the
DFARS to implement section 806 of the NDAA for FY 2021,
which amends section 893 of the NDAA for FY 2011. Section
893 of the NDAA for FY 2011 requires a program for the
improvement of contractor business systems and provides for
DoD approval or disapproval of contractor business systems.
In connection with those evaluations, section 806 of the
NDAA for FY 2021 defines the term "material weakness," which
replaces the term "significant deficiency."
The
OFPP's CAS Board has released an
advanced notice of proposed rulemaking to elicit public
comments on proposed changes to conform CAS 408 ("Accounting
for costs of compensated personal absence") and CAS 409
("Depreciation of tangible capital assets") to GAAP.
Comments are due by August 26.
The CAS Board has
also released a notice of proposed rulemaking to elicit
public comments on proposed changes to CAS related to
operating revenue and lease accounting to conform them
with changes in GAAP. Comments are due by August 26. |
June 27 |
In BAE
Systems Technology Solutions & Services Inc., although
the protester's OCI allegations were dismissed as late and
its protest that the awardee's revised proposal violated the
corrective action ground rules was denied, the GAO held that
the agency misevaluated professional compensation by failing
to follow the solicitation requirement that the evaluators
compare the costs proposed in the cost proposal with the
approach set forth in the management approach proposal.
In
International Development Solutions, LLC, the Court of
Appeals for the Federal Circuit affirmed the
prior CBCA decision, holding that there was no evidence
that the taxes for which contractor sought reimbursement
were actually assessed against, or paid by, it (as opposed
to entities higher up in its business structure) or were
allocable to the task orders at issue. |
June 26 |
In
PMCG CollaborateUp JV LLC, the Court of Federal Claims
held that the Contracting Officer had erred in concluding a
JV was ineligible for award based on the preliminary
suspension of one of its members without investigating
further when the firm had challenged the suspension and it
was lifted before any task order awards were made. |
June 25 |
In
Accura Eng'g and Consulting Services, Inc., the Court of
Federal Claims granted the protester's motion for the award
of EAJA attorneys' fees after a successful bid protest
because: (i) the Government's litigation position was based
on an interpretation of the controlling statute that was
contrary to its plain language; (ii) a prior GAO decision
favoring the Government was irrelevant, especially when the
GAO's decision did not address the argument that ultimately
prevailed; and (iii) the fact that only one of several
arguments prevailed was irrelevant to the size of the award
because there was a clear win and all the arguments had been
interrelated and directed at the same result. |
June 24 |
The GAO sustained a protest by
A Square Group, LLC because: (i) the agency's conclusion
that the awardee's mitigation plan (a firewall) adequately
mitigated an impaired objectivity OCI was unreasonable
because the plan failed to cover a significant aspect of the
work subject to the OCI; and (ii) the agency failed to
evaluate the effect of the mitigation plan on the awardee's
proposed technical approach. |
June 21 |
In
GSI Constr. Corp., the ASBCA denied the Government's
motion for summary judgment because the Government failed to
mention controlling precedent contradicting its position
that the contractor could not recover for a delayed notice
to proceed when there was no date set in the contract by
which the notice must be issued. The rule is that when there
is no set date for the notice to proceed, the Government
still is required to issue the notice within a reasonable
time.
In
Lacy Mechanical, Inc., however, the ASBCA granted the
Government's motion for summary judgment concerning a
subcontractor's pass-through claim in a task order for
removal and replacement of anchor cables because: (i) a
bilateral contract modification that included a release
operated as an accord and satisfaction of the contractor's
claim for late delivery of, or faulty, GFE, and none of the
Government's actions after the modification indicated the
Government was continuing to consider the claim; and (ii)
the contractor's alternate theory of recovery based on an
alleged implied-in-fact contract must be denied because an
implied-in-fact contract cannot exist where there is an
express contract covering the same subject matter. |
June 19 |
In
HealthRev, LLC, an unsuccessful post-award protest, the
Court of Federal Claims held that: (i) the agency properly
evaluated the offer by a mentor-protégé joint venture under
13 C.F.R. § 125.8(e) by evaluating each member's strengths
and weaknesses in order to determine the capability of the
joint venture as a whole ("in the aggregate"); and (ii) the
agency did not evaluate proposals disparately or apply
unstated evaluation criteria. |
June 18 |
In
Size Appeal of Prak-Integrity
JV, the SBA's OHA held that the appellant lacked
standing to protest another offeror's size because the
protester's offer was nonresponsive for failure to comply
with the solicitation requirement to be registered in SAM,
even if the Contracting Officer had not notified it of its
nonresponsiveness. |
June 17 |
In
HELF Investments and Los Portales Assocs., LP, the CBCA
denied appeals from the agency's refusal to reimburse two
lessors for increases in real estate taxes because the
appellants/lessors failed to comply with lease provisions
stating that increases in annual property taxes would be
reimbursed by the agency/lessee only if the lessors
submitted invoices and evidence of payment of the taxes
within the times specified in the leases.
In
Size Appeal of Red Orange LLC, the SBA's OHA
upheld the Area Office's application of an adverse inference
to establish affiliation after the challenged firm failed to
provide any information requested by Area Office to respond
to a size protest. The challenged firm argued unsuccessfully
that the emails from the agency requesting information from
it had been sent to the wrong department (accounts
receivable). However, the OHA noted that the emails had been
sent to the address of the firm's President who was listed
on the firm's SAM website as the firm's primary point of
contact.
In
Size Appeal of LinTech Global, Inc., the OHA held
that a firm could compete for a small business set-aside
task order solicitation that did not contain a specific
request for size recertification issued under an FSS
unrestricted MAC contract, despite the fact that, as a
result of a merger, the firm had become other than small
between the award of the MAC contract and the task order
solicitation because 13 C.F.R. 121.404(g) only restricts the
agency's ability to count an award to the firm in the
agency's small business contracting goals. |
June 13 |
In
Trumble Constr., Inc., an unsuccessful post-award protest,
the Court of Federal Claims held, inter alia, that:
(i) under the key management evaluation factor, the
evaluators reasonably assigned deficiencies to the
protester's proposal for failing to demonstrate adequate
experience of its proposed managers after the agency had
communicated those deficiencies to the protester and had
given it a chance to revise its proposal, and the agency was
under no obligation to discuss the deficiencies with the
protester further after it failed to adequately address the
deficiencies in its revised proposal; (ii) similarly, the
agency reasonably assigned a deficiency to the protester for
failing to list its proposed subcontractors, as required by
the solicitation, even after being given a second chance to
do so following discussions; (iii) the agency reasonably
assigned the protester a weakness for having only a vague
schedule; (iv) the agency had a rational basis in the
record for amending the solicitation to extend the
performance period; and (v) the agency rationally evaluated
the awardee's price as fair and reasonable and was not
required to compare it to the protester's lower price
because the protester's proposal was unawardable and,
therefore, the agency had no basis to determine that the
protester's price was fair and reasonable.
Catching
up on a May decision, in
MPG West, LLC, a decision labeled as nonprecedential, the
Court of Appeals for the Federal Circuit generally affirmed
the prior ASBCA decision, holding that in a contract for the
provision of fresh fruits and vegetables to commissaries in
Korea and Japan: (i) the contract gave the contractor the
discretion whether to use local sources or to import produce
and (if contractor chose to import) it was required to
follow applicable regulations; (ii) the Government was not
required to examine the possible price consequences of the
new contract model used in the solicitation and did not
undertake to do so; and (iii) the DCAA did not act in bad
faith in the weekly pricing meetings. However, the court
remanded case for further proceedings to determine whether
the Government's requirement to use a specified vendor for
bagged salads followed by the determination that its
imported prices were too high could be a breach because
there was allegedly no local sourcing available for its
products. |
June 12 |
In
Safal Partners LLC, an unsuccessful post-award protest,
the Court of Federal Claims held that, although the protest
was timely under Blue & Gold Fleet and stated a
sufficiently plausible claim to survive a 12(b)(6) motion to
dismiss, the agency did not mislead the protester by
allegedly changing the definition of "strength" from the
list of strengths provided to the protester in an initial
debriefing to the strengths found by the agency after a
subsequent evaluation because "strength" was never a defined
term in any version of the solicitation and the information
regarding strengths initially provided to the protester was
too nebulous to have a definition inferred from it. |
June 11 |
In
Percipient.ai, Inc., the Court of Federal Claims
initially held it had bid protest jurisdiction over an
allegation that the Government had violated the requirement
in 10 U.S.C. § 3453 that defense agencies and their
contractors must acquire commercial products to the maximum
extent practicable. Subsequently, however, the court
vacated its own opinion in an unpublished order and held
it lacked jurisdiction. Now, the Court of Appeals for the
Federal Circuit has
reversed, holding that: (i) FASA's task order bar does
not apply to a protest that does not challenge the issuance
or proposed issuance of a task order and, therefore, is not
"in connection with"
a task order; and (ii) the CoFC has jurisdiction under the
third prong of the Tucker Act 28 U.S.C. § 1491(b)(1) because
the protest was "in connection with" a procurement or
proposed procurement. So, the protest was not "in connection
with" a task order but was "in connection with" a
procurement. I don't know why, exactly, but putting it that
way tickles my funny bone. |
June 10 |
Effective August 5, unless significant adverse comments are
received by July 8, a
direct final rule amends the SBA's regulations to
implement section 864 of the NDAA for FY 2024, which (a)
amends the SDVOSB requirements so that, effective October 1,
2024, each prime contract award and subcontract award
counted for the purpose of meeting the goals for
participation by SDVOSBs in procurement contracts for
federal agencies or federal prime contractors shall be
entered into with firms certified by VetCert, and (b)
creates a grace period so that firms that file an
application for certification with SBA by December 22, 2024,
may continue to self-certify for such Federal Government
contracts and subcontracts until SBA makes a final decision.
SDVOSBs that do not file an application for certification
with SBA by December 22, 2024, or are not certified by SBA’s
VetCert program and do not file an application by the
deadline, will not be eligible to self-certify for such
Federal Government contracts or subcontracts after December
22, 2024.
GSAR Case 2022-G517: Effective July 8, a final rule
amends the GSA's acquisition regulation (GSAR) to add a new
provision and clause to identify single-use plastic free
packaging availability for products under the Federal Supply
Schedules with the goal of reducing single-use plastic
waste.
FAR Case 2023-001: A proposed rule would amend the FAR
to implement regulatory changes made by the SBA in its final
rule published on October 16, 2020, at 85 FR 66146, to
implement paragraphs (a) and (d) of section 861 of the John
S. McCain NDAA for FY 2019, which add Puerto Rico to the
list of territories from which small businesses are eligible
for preferential treatment under the SBA mentor-protégé
program. In addition, this rule implements SBA’s final rule
published on August 19, 2022, at 87 FR 50925, to implement
paragraphs (a) and (c) of section 866 of the NDAA for FY
2021, which add the U.S. Virgin Islands, American Samoa,
Guam, and the Commonwealth of the Northern Mariana Islands
(CNMI) to the list of territories from which small
businesses are eligible for preferential treatment under the
SBA mentor-protégé programs. Section 866 also defines a
"covered territory business" as a small business concern
that has its principal office located in one of the
following: (1) the U.S. Virgin Islands; (2) American Samoa;
(3) Guam; or (4) CNMI. Sections 861 and 866 created two new
incentives for SBA’s small business mentor-protégé program
for mentor-protégé pairs in which the protégé has its
principal office located in the Commonwealth of Puerto Rico
or is a covered territory business. Specifically, such a
mentor that subcontracts to its protégé is able to receive
positive consideration for the mentor’s past performance
evaluation and is able to apply costs incurred for training
provided to its protégé to its subcontracting plan goals. In
addition, this rule implements changes SBA made to its
regulations to clarify that: (i) subcontracting plans are
not required from firms owned by an Alaska Native
Corporation because they are treated as small business
concerns according to statute; and (ii) prime contractors
may rely on a subcontractor’s representations of its size
and socioeconomic status unless the prime contractor has
reason to doubt the representations. Comments are due by
August 6.
FAR Case 2023-013: A proposed rule would amend the FAR
to implement regulatory changes made by the SBA in its final
rule published on April 10, 2023 (88 FR 21086) to implement
section 864 of the NDAA FY 2022 (Pub. L. 117–81), which
authorizes the SBA's OHA to decide all appeals from formal
status protest determinations in connection with the status
of a HUBZone concern. Prior to section 864 and SBA’s final
rule, appeals of HUBZone status determinations were decided
by the SBA’s Associate Administrator, Office of Government
Contracting and Business Development. This rulemaking
proposes to implement SBA’s final rule, dated April 10, 2023
(a) to specify in the FAR that the OHA is responsible for
deciding all appeals of status protest determinations for a
HUBZone concern, (b) to identify the information that must
be included in an appeal of a HUBZone status protest
determination, and (c) to remove the requirement for a
HUBZone concern to represent its status in the SAM, as it is
no longer necessary since HUBZone concerns are certified by
the SBA. Comments are due by August 6. |
June 7 |
In
Red Bobtail Transportation, which involves more
interesting issues and analyses than one typically finds in
an appeal under the ASBCA's small claims (expedited)
procedure, the Board held,
inter alia, that: (i) the Government's contention
that two claims were actually one was erroneous because
"they were based on different sets of invoices for different
missions in different suites, and therefore involve an
examination of different operative facts"; (ii) the
limitations period on the claim for improper deductions did
not begin to run before they were actually taken against the
invoices being appealed here; and (iii) the agency's
"negative incentives" taken as deductions in this FFP
contract were improper liquidated damages because they were
meant to penalize the contractor rather than to compensate
the Government's for its losses. |
June 4 |
In
Fox Logistics & Constr. Co., the Court of Federal Claims
held,
inter alia, that: (i) a subcontractor did not have
an implied-in-fact contract with the Government to be paid
directly when the prime encountered financial difficulties
because there was no mutuality of intent since the
Government never accepted any of the subcontractor's
proposals and specifically rejected two of them (e.g.,
the subcontractor's demand that it be paid before it
returned to work); and (ii) the sub was not a third party
beneficiary because the Government's letter to the prime
requiring it to, inter alia, agree to a payment
plan to get its subs paid and to establish a special bank
account to receive payments intended for subcontractors,
which the Government had a right to view, did not establish
a mechanism for the subcontractor to receive the funds
directly. I have just a hint of heartburn with the second
holding because it seems to me the Government's ultimate aim
in of all the interactions with the prime after it began
having problems paying subs was to get the subs paid,
i.e., to benefit the subs, which is supposed to be the
crucial element in establishing third party beneficiary
status.
In
US Pan American Solutions LLC, the ASBCA found a
contractor's notice of appeal from a default termination was
untimely because: (i) there was sufficient evidence
(including its President's admission) to establish when the
contractor received the decision; and (ii) the Contracting
Officer's failure to include the standard appeal rights
language in the decision was not fatal because the
circumstances showed the contractor was aware of its appeal
rights, and the contractor did not allege prejudice from the
absence of the standard language. |
June 2 |
In
Size Appeal of Diversified Elevator Service and
Equipment Co., the SBA's OHA held,
inter alia, that an undated, unaddressed letter from a
large firm touting its abilities to perform all the contract
work and included in the challenged firm's proposal was not
sufficient to establish the two firms had an actual
relationship at the time that the proposal was submitted
whereby the large firm would perform the primary and vital
contract requirements in violation of the ostensible
subcontractor rule. The protester also had presented other
suggestive and plausible arguments in support of its
contention, and I read the OHA's decision to mean it does
not subscribe to the adage--where there's smoke, there's
fire--even when there is a whole bunch of very ominous
smoke.
In Size
Appeal of FRM Socks, LLC, the OHA held that, in
determining affiliation, a Term Sheet setting out the
elements of an upcoming merger fell under the "present
effect" rule (13 C.F.R. § 121.103(d)) because it was an
agreement in principle that included all significant details
of the merger and did not leave substantive steps to be
accomplished. In
Size Appeal of Radiant Infotech, LLC, the OHA
denied the appeal because private parties lack standing to
bring size protests against sole-source 8(a) awardees, and
neither the Contracting Officer nor the SBA was obligated to
initiate a size protest after being alerted of the alleged
size issue by the appellant.
In
Size Appeal of Colt-Sunbelt Rentals JV, LLC, the
OHA held that a mentor-protégé joint venture agreement that
failed to identify the respective responsibilities of the
parties for the contract at issue was defective and could
not be cured by an unsigned addendum (where the agreement
stated addendums must be signed) that was not shown to be in
effect at the time of final proposal revisions.
In
Size Appeals of
Tech-Marine Business, Inc., the OHA held that,
consistent with its recent holdings in
McLaughlin Research,
Imagine One Technology &
Management, Ltd., and
Saalex Corp., a firm was not required to
recertify its size for a set-aside task order award under an
unpriced MAC pursuant to the former version of the
applicable SBA reg that was in effect at the time.
In
Matter of Irby Spine Care Professional Corp., the
OHA upheld a firm's termination from the 8(a) program for
repeated failures to submit required documentation.
The OHA dismissed the appeal in
In the Matter of Decision Frameworks, LP
because the OHA lacks jurisdiction over an appeal from the
denial of a firm's certification as a WOSB.
In
VSBC Protest of NEIE Medical Waste Services, LLC,
the OHA dismissed the portion of a combined size and SDVOSB
status protest related to status as untimely because the
protester failed to file it by the close of business on the
fifth business day after notification by the Contracting
Officer of the apparent successful offeror)
In NAICS
Appeal of Cynergy Professional Systems, LLC, the
OHA held that in a solicitation to provide weapons detection
system services to VA medical centers, one of the
contractor's choices (NAICS 334290 ("Other Communications
Equipment Manufacturing")) with a size standard of 800
employees was preferable to the Contracting Officer's choice
of NAICS 561621 ("Security Systems Services (except
Locksmiths)").
DFARS Case 2023-D010: A final rule amends the DFARS
to implement section 803 of the James M. Inhofe NDAA for FY
2023, which modifies 10 U.S.C. 3455 to provide additional
guidance regarding data requirements to support a
determination of commerciality and price reasonableness for
certain procurements associated with major weapon systems.
DFARS Case 2021-D022: A final rule amends the DFARS to
implement sections 845 and 1603 of the NDAA for FY 2021,
section 816 of the NDAA for FY 2022, section 853 of the NDAA
for FY 2023, and section 8016 of the Consolidated
Appropriations Act of 2023, which amend 10 U.S.C. 2534 (now
10 U.S.C. 4864) to require acquisition of certain items and
components from the national technology and industrial base.
The national technology and industrial base is defined at 10
U.S.C. 4801 as the United States, Australia, Canada, New
Zealand, or the United Kingdom.
DFARS Case 2021-D015: A final rule amends the DFARS to
implement section 844 of the NDAA for FY 2021, which amends
10 U.S.C. 2533c (redesignated 10 U.S.C. 4872) and removes
from the restriction "material melted" and replaces it with
"material mined, refined, separated, melted," and also
removes the reference to "tungsten" replaces it with
"covered material" in the exception for COTS items to the
restriction of 50 percent or more by weight. The final rule
also implements section 854 of the NDAA for FY 2024 that
amends the effective date in section 844(b), extending the
effective date of the restriction from 5 years to 6 years.
DFARS Case 2024-D004: A proposed rule would revise the
DFARS to implement section 874 of the NDAA for FY 2022 (as
amended by section 872 of the NDAA for FY 2024), which
authorizes DoD to establish a pilot program that allows for
the noncompetitive award of certain follow-on contracts to
employee-owned businesses that meet the definition of a
qualified business. Comments are due by July 29.
DFARS Case 2024-D006: A proposed rule would revise the
DFARS to implement section 853 of the NDAA for FY 2024,
which amends the definitions of nonprofit organization and
business entities at 10 U.S.C. 4951 for the Procurement
Technical Assistance Program. DoD implements the
requirements at 10 U.S.C. 4951 through its APEX Accelerators
(formerly known as Procurement Technical Assistance
Centers), which are managed by the DoD Office of Small
Business Programs. Comments are due by July 29. |
May 31 |
Spatial Front, Inc., won its GAO protest after the
agency conceded it had not contemporaneously examined the
awardee's proposed labor categories from its FSS contract to
determine whether they encompassed the geospatial services
work required by the solicitation. |
May 30 |
In
Size Appeal of Colossal Contracting, LLC, the
SBA's OHA held that, contrary to 13 C.F.R. § 121.104(a), the
Area Office improperly used evidence beyond a firm's tax
returns to calculate its receipts for purposes of
determining its size. |
May 28 |
In
Crowley Government Services, Inc., an unsuccessful
preaward protest, the Court of Federal Claims held,
inter alia, that: (i) the contractor's argument (that
provisions in a United States Transportation Command
("TRANSCOM") solicitation permitting the GSA to audit the
transportation bills of the contract carriers under pursuant
to the Transportation Act (31 U.S.C. § 3726(b)) are
improper) has already been preclusively decided against the
contractor by the D.C. District Court (even though that
decision is currently on appeal); (ii) TRANSCOM has the
authority to designate that the firms performing under the
contract are "carriers"; and (iii) this suit is not in the
proper forum for addressing the contractor's argument that
there is an OCI in the manner in which the GSA, as a
separate agency, employs firms to conduct its audits under
GSA contracts separate from this one. This is one of those
cases involving issues that I'm almost sure I will never
face, but, if I'm unlucky enough to have to, I'll know where
to look. ;)
In
A4 Constr. Co., the ASBCA struck the portions of the
Complaint related to allegations involving separate and
distinct subclaims, each arising from materially different
and unrelated operative facts, for which the contractor
failed to identify sums certain in its original claim to the
Contracting Officer.
In
GLJ, Inc., the ASBCA granted summary judgment for the
Government in dismissing an appeal pursuant to the
fulfillment of a bilateral settlement agreement reached as a
result of ADR and held that it lacked jurisdiction over an
alleged verbal agreement reached during ADR for an issue not
previously presented to the Contracting Officer for a
decision and concerning a different agreement from the one
that was the subject of the appeal.
In
Konecranes Nuclear Equipment & Services, LLC, the ASBCA
held that: (i) contrary to the Government's contention on
appeal that the specifications were patently ambiguous, they
were clear, and the contractor's units (cranes) met them (as
the Government's engineers and Contracting Officer had
conceded in internal communications before the dispute
arose); (ii) the Government's compensably delayed the
project by its refusal to take delivery of the cranes based
on (a) a defect in the first unit that the contractor had
quickly identified and corrected and (b) the Government's
desire for a unit that exceeded the specifications; (iii)
absent a "Suspension of Work," "Government Delay of Work,"
or "Stop Work Order" clause (which the Board would not
impute to this commercial items contract), the Government
breached its implied duty not to interfere by unreasonably
inspecting the equipment; and (iv) the contractor did not
concurrently delay the work by refusing to accept
Government's terms for a modification upgrading the disputed
equipment: "We discern no impropriety by [the contractor] in
its negotiating the potential contract modification, but
[sic] refusing to take a bad deal, and, thus, we reject the
Navy’s assertion of a prior material breach of the implied
duty of good faith and fair dealing."In
Herman JCG Co. JV, the ASBCA held that, almost immediately
after rejecting it, the Government constructively accepted
the contractor's VECP phasing plan by executing a contract
modification that basically incorporated its features:
Here, the government made [the contractor's] phasing plan
part of the contract when the contracting officer
unilaterally modified the contract to incorporate the Final
Design. . . . This modification adopted the substance of
[the contractor's] VECP—its phasing plan and trailer
reduction. . . . When the contracting officer executed
Modification No. P00002 just one day after rejecting the
VECP, she did so with full knowledge that [the contractor]
considered its phasing plan to be a VECP. . . . Through this
action, the government constructively accepted [the
contractor's] VECP. Thus, we conclude that the government
rejected [the contractor's] VECP, in form, but accepted it,
in fact. |
May 24 |
In
Reliability and Performance Technologies, LLC,
which involved the Government's motion for summary
judgment as to all three counts in a suit for nonpayment of
indirect costs in a CPFF IDIQ contract, the Court of Federal
Claims held that: (i) the contractor's failure to provide
notice of future costs was not a reason to bar its claim
under the "Limitation of Funds" clause because the contract
was for "emergent" work that the Government would identify
and that the contractor could not predict, especially when
the facts could establish that the Government breached its
own obligations under the "Allowable Cost and Payment"
clause; (ii) a release that the Government claimed barred
the contractor's claim was at least ambiguous, especially
where the Government's interpretation of the release
language was inconsistent with the remainder of the document
in which it appeared; but (iii) the contractor's claim for
breach of the implied duty of good faith and fair dealing
should be dismissed because it was for the same damages as
the contractor's claim that the Government had breached the
"Allowable Cost and Payment" clause, and the Government did
not act in a way inconsistent with the contract's express
purpose. |
May 23 |
In
Anders Constr., Inc., a successful protest leading to a
permanent injunction, the Court of Federal Claims held that
there was no rational basis for any of the five reasons
advanced by the agency to justify finding the plaintiff's
proposal technically unacceptable following corrective
action after finding it acceptable originally, e.g.,
(i) the protester's alleged failure to provide a "sample"
completion report with its offer when the solicitation only
required a completion report during contract performance,
(ii) the protester's alleged failure to label certain
documents submitted with its proposal in a certain way when
the solicitation did not require them to be labeled, and
(iii) the protester's alleged failure to provide a diver's
certificate for a proposed employee when its proposal
unambiguously labeled that individual as a Supervisor,
rather than a diver. The court also held that it lacked
jurisdiction over the protester's alternative claim under
the Declaratory Judgment Act.
In
Triumph Financial Services LLC, the court dismissed a
count in the Complaint by the assignee of payments to Postal
Service freight motor carrier transportation services
contractors alleging violation of the Anti-Assignment Act
(31 U.S.C. § 3727(c) and 41 U.S.C. § 6305(b)) because the
statute does not apply to the Postal Service. |
May 21 |
In
Michael Stapleton Assocs., Ltd., the Court of
Appeals for the Federal Circuit upheld the prior
CoFC decision finding that the procuring agency had
rational bases for (a) revising the solicitation to separate
it into two procurements and (b) shortening the prior
look-back period for evaluating past performance, but
reversed the CoFC's conclusion that the agency had not taken
adequate steps to mitigate the incumbent's conflict of
interest in order to permit it to participate in the revised
procurement. |
May 17 |
In
Gilead Sciences, Inc., which involved a discovery dispute,
the Court of Federal Claims held that in seeking to recover
attorneys fees as damages after prior findings of the
Government's breaches of contracts, the contractor waived
the attorney-client privilege over the contents of its
attorneys' billing statements and must produce unredacted
versions of those records sufficient for a determination of
the reasonableness of the fees.
In Kearney
& Co., P.C., et al., a successful protest by
the original awardee, the court held that the agency's
corrective action, based on a GAO attorney's erroneous
statements in a predictive outcome conference, lacked a
rational basis because the solicitation did not, as the GAO
attorney had claimed, require an exact match
between the PWS requirements for the key personnel position
of Statistician-Senior and a labor category in the
contractor's GSA Schedule contract. |
May 16 |
In
Parsons Government Services, Inc., the CBCA denied the
agency's motion to dismiss for failure to state a claim
because the contractor adequately pled the elements to
support its claims of superior knowledge, breach of the
implied duty of good faith and fair dealing, and
impracticability of performance, and the challenges raised
by the agency to those allegations would have to await
development of the record.
The SBA proposes to make
several changes to the
Women-Owned Small Business Federal Contract (WOSB) Program
regulations, including adding definitions that are not
currently included in the regulations and conforming the
regulations to current statutes that have not yet been
integrated. The rule would also adopt similar language to
that used in SBA’s other government contracting program
regulations regarding the length of time that a firm that
has been declined three times must wait before reapplying to
the WOSB Program. Basically, the rule would align the
language of the restrictions in 8(a) BD and WOSB programs to
the current restriction in the VetCert Program. Comments are
due by July 15. |
May 15 |
In
Ecology Mir Group, LLC, a case involving contract
interpretation, the ASBCA held that: (i) in a fixed-price
IDIQ task-order contract for tree removal and pruning
services, the agency did not misclassify services that
allegedly should have been under tree removal as tree
pruning because the definition of tree pruning in the
contract covered the type of work the contractor was
required to perform; and (ii) the fact that the agency had
deleted the pruning CLIN in another task order under the
same contract did not establish a course of dealing and did
not affect the Board's conclusion as to the meaning of the
contract. |
May 14 |
I think there is more bad news on the ASBCA's new system for
addressing its decisions. Originally, I had been able to
substitute the new addresses for the old addresses using a
"find a replace" function that simply added Portals/143 at
the appropriate spot in the old addresses. However, there
were some new addresses in a form that could not be derived
from the old addresses. Here is an example:
https://www.asbca.mil/LinkClick.aspx?fileticket=y8wtppTBIrc%3d&portalid=143
As I type this, many of my links still work, but it appears
that they are gradually replacing the old addresses with
this new form. If that trend continues, I would have to
manually change close to 2,000 links one link at a time in
order to keep up. Frankly, I'm just too effing old. So,
unless somebody with more internet savvy than I have can
send me a solution, it looks like more and more of my old
ASBCA links will be broken. I should note that the ASBCA's
own new list of links contains a significant number of
errors, especially for older cases, so they obviously still
have bugs in the new system. |
May 13 |
In
Peraton, Inc., the Court of Federal Claims denied the
Government's motion to dismiss a suit for breach of contract
due to the plaintiff's failure to name in the Complaint the
specific individual with authority who bound the Government
to the alleged contract, such identification not being
necessary to survive a motion to dismiss prior to the
development of the record.
In
FedResults, Inc., the CBCA denied both: (i) the
Government's motion to dismiss an appeal on the basis that
the contractor did not state a sum certain in the notice of
appeal (which it designated as its Complaint) since the sum
certain requirement applies to the claim submitted to the
Contracting Officer, not the notice of appeal; and (ii) the
Government's motion to dismiss the appeal based on the
contractor's alleged failure to establish compliance with
Severin doctrine, i.e., being liable to its
sub on a pass-through claim, because the motion was based on
evidence outside the Complaint which the plaintiff had not
yet had an opportunity to address, the motion, therefore,
being premature.
In
Omran, Inc., the ASBCA granted summary judgment in favor
of the Government because the undisputed facts established
that the breach damages sought by the contractor as a result
of actions by the Taliban were not foreseeable at the
original time of contracting.
In
Enfield Enterprises, Inc., the ASBCA held that the
contractor had no right to claim material escalation costs
in a firm fixed-price contract without an "Economic Price
Adjustment" clause, and the Board lacked jurisdiction over
the contractor's attempt to restyle that claim on appeal as
a constructive change claim based on a delayed notice to
proceed because it was materially different from the
material escalation claim previously presented to the
Contracting Officer for a decision. |
May 10 |
ITility, LLC
won its GAO protest because: (i) the agency failed to
respond to the supplemental protest allegation that the
agency unreasonably assigned a positive rating to the
awardee's proposal, thereby effectively conceding that
allegation; and (ii) the agency failed to conduct the
required qualitative evaluation of proposals in two areas. |
May 9 |
In
Siemens Government Technologies, Inc., a decision labeled
as nonprecedential, the Court of Appeals for the Federal
Circuit affirmed the
prior ASBCA decision denying the contractor's claims
because: (i) the claimed costs were not incurred in
connection with the actual task order award (rejecting the
argument that because the Government issued a task order
authorizing energy conservation work at some sites, it
thereby became liable for the proposal development costs the
contractor incurred at all sites mentioned in the underlying
contract); (ii) there can be no claim for breach of the
implied duty of good faith and fair dealing in the absence
of a contract; and (iii) there was valid no claim based on
superior knowledge where the claimed actions did not result
in a task order award. |
May 8 |
In
Avant Assessment, LLC, the Court of Federal Claims held
that it lacked jurisdiction over claims the contractor
discovered during prior ASBCA litigation but never presented
to the Contracting Officer for a decision, which, according
to the court, remains a jurisdictional requirement despite
recent CAFC decisions. |
May 7 |
Effective June 5, the United States Agency for International
Development (USAID) is issuing a final rule amending its
Acquisition Regulation (AIDAR) to implement USAID
requirements for
managing digital information as a strategic asset to
inform the planning, design, implementation, monitoring, and
evaluation of the agency’s foreign assistance programs. This
final rule incorporates a new policy on Digital Information
Planning, Collection, and Submission Requirements and the
corresponding clause as well as a new clause entitled
"Activity Monitoring, Evaluation, and Learning Plan
Requirements" into the AIDAR.
FAR Case 2023-008: A proposed rule would amend the FAR
to implement paragraphs (a), (b), and (h) in section 5949 of
the James M. Inhofe NDAA for FY 2023 that prohibits
executive agencies from procuring or obtaining certain
products and services that include covered semiconductor
products or services effective December 23, 2027. Comments
are due by July 2. |
May 6 |
In
VSBC Protest of Aldevra LLC, the SBA's OHA held
that a solicitation was small business set-aside, as stated
on its cover sheet, and the inclusion of two clauses
associated with an SDVOSB set-aside was merely an
administrative error. Thus, the SDVOSB status of the
protested firm was irrelevant.
In
VSBC Appeal of Dank Blossom, Inc., the OHA
dismissed the appeal because the firm challenging the denial
of its SDVOSB status failed to allege any errors in that
decision and failed to respond to an OHA show cause letter,
essentially conceding its appeal was deficient. Similarly,
in VSBC Protest
of MicroTechnologies, LLC, the OHA held that a firm
that failed to respond to an OHA show cause notice
essentially admitted its protest was fatally nonspecific.
In VSBC
Protest of DataCom Solutions, Inc., the OHA
dismissed an unsigned, untimely "protest" that lacked
specific allegations, but was characterized by its author as
an "inquiry." |
May 4 |
Catching up with a few earlier cases . . .
In
Sikorsky Aircraft Corp., the Court of Federal Claims held
that: (i) the contractor's motion to dismiss claims the
Government had not yet asserted on the basis of suspicions
raised by the Government's discovery requests was not
proper; but (ii) a protective order was appropriate to limit
the Government's discovery requests to issues raised in the
Contracting Officer's decision. Subsequently, the court
denied the Government's motion to reconsider the
limitation on its discovery requests.
In
Highway and Safety Services, Inc., the court transferred a
case to the CBCA that was originally untimely filed there in
order to consolidate it with a related appeal that had been
timely filed.
In
Superior Optical Labs, Inc., the court granted a
competitor's motion to intervene in a preaward protest
alleging that if the protester were disqualified as the
agency intended, award would be made essentially on
sole-source basis to the intervenor, about which protester
made disparaging allegations. |
May 3 |
In
Eagle Hill Consulting, LLC, an unsuccessful post-award
protest, the Court of Federal Claims held, inter alia,
that: (i) an erroneous spreadsheet initially filed by the
Government in the administrative record was not the
spreadsheet actually provided to offerors, and thus was not
the basis for a protest; (ii) the solicitation was not
ambiguous concerning the method the agency would use to
conduct the price analysis; (iii) the solicitation contained
a patent ambiguity concerning the information the offerors
were to include on the pricing worksheet, which the
protester failed to timely challenge under the Blue &
Gold Fleet standard; (iv) the solicitation did not
require the awardee to provide a "crosswalk" between the
labor categories in its offer and those in its GSA schedule
contract, and the agency did review the two sets of
information, which was all that was required; and (v) there
was an adequate explanation in the record for the agency's
evaluation of Corporate Experience, which court would not
second-guess. |
May 2 |
In
Anderson Contracting, LLC, which involved contract
interpretation, the ASBCA rejected the contractor's claim
that it had been underpaid for compacted fill material it
had provided in order to construct a berm as a result of the
Government surveying the work before the contractor had
finished clearing the site, finding that a contract
provision requiring "removal to within 6-inches of the
ground surface of all trees, brush and vegetation" meant
removal above ground rather than to a depth of six inches
underground as the contractor contended.
In
Enfield Enterprises, Inc., the CBCA held that a
bilateral release of "any and all claims and liability under
or by virtue of this contract or any modification," which
did not include any exceptions, barred the contractor's
claim that the Government's modifications and errors pushed
its performance into a period of adverse weather, even
though the release did not mention weather delays, because
the contractor's claim was based on the Government's alleged
actions, not weather delays.
In
Didlake, Inc., the CBCA held that the local county's
increased minimum wage did not take precedence over the
contract's wage requirement established set by the
incorporated DOL wage determination, so the contractor was
not entitled to a price adjustment to reflect the county's
rate.
In
Lusk Mechanical Contractors, Inc., the CBCA denied an
appeal seeking compensation under the "Suspension of Work"
clause, holding that a stay at home order issued by the
Governor of the Virgin Islands during the COVID pandemic
meant that the Contracting Officer's own suspension of work
order was not the "sole proximate cause" of the suspension,
and the seldom-invoked contract interpretation rule of "the
last antecedent" did not change the meaning of the
Governor's order or the Board's conclusion.
In
Honeywell Int'l, Inc., the CBCA denied the contractor's
motion for summary judgment that a bilateral release barred
the Government's claim because the Board found there were
disputed issues of fact concerning the scope of the release,
specifically whether it covered all the findings in an audit
or only one of them. |
May 1 |
I'm going to crow a little bit. I hope it's not premature.
As you remember, the ASBCA has changed all the addresses
for its decisions, which broke all my past links. At first
glance, the new addresses looked like they would require me
to change each one individually, which would have taken
months, because most of the new addresses look like the
following, with a unique (different) set of gobbledegook
characters at the end of each after "pdf":
https://www.asbca.mil/Portals/143/Decisions/2022/63296%20Global%20Technical%20Systems%2012.21.22%20Dismissal.pdf?ver=IS5HXDuBtlS92MlooxnTWg%3d%3d
However, I have figured out that if I add "Portals/143/"
to all the old addresses and ignore all the characters after
".pdf," many of the links will work, which means I can just
do a mass "find and replace" to correct many of the old
addresses at once.
This will not work for every new
address because there are some that are in a completely
different form, e.g.:
https://www.asbca.mil/LinkClick.aspx?fileticket=wBZjC9pSuAw%3d&portalid=143
However, I think it will cut down the job of revamping
the site from months to less than a month.
This
morning I made the "find and replace" changes for all 17 of
the yearly procurement reviews. I then spot checked each
review, and all the links I checked worked. However, I'm
sure there are some that won't, so if you come across a bad
link, please let me know. There are about 100 ASBCA links on
each of those procurement review pages, so just clicking on
all 1500+ links would take me a long time. . . . I've now
also made the changes on the two ASBCA decisions pages and
on the CAFC contract disputes page (because some of the CAFC
case descriptions contain links to the ASBCA decisions being
appealed). |
April 30 |
In
Supreme Foodservice Gmbh, which involved contract
interpretation, the ASBCA held that: (i) the Government had
released its claim because the term "Covered Conduct" in a
bilateral False Claims Act settlement document included the
funds the Government was attempting to recoup in this
appeal; and (ii) the Government's claim was not among the
exceptions listed in the settlement agreement.
In
VSBC Protest of Panakeia, LLC, the SBA's OHA
dismissed a protest that the challenged firm would be
unusually reliant on a non-SDVOSB subcontractor because: (i)
the protester failed to respond to the motion to dismiss;
and (ii) in a contract for services, the challenged firm
need only meet the "Limitations on Subcontracting"
provision, and, here, the challenged firm's proposal
indicated that it would self-perform a majority of the work
and would subcontract less than 50% of the contract value to
its two subcontractors. |
April 29 |
In
North Wind Constr. Services., LLC, the ASBCA denied the
Government's motions to dismiss two appeals brought before
the Contracting Officer issued decisions as premature
because: (i) in one instance, the Government offered no
evidence that the time the Contracting Officer had
established to issue his decision was reasonable; and (ii)
in the other case, by the time the motion to dismiss had
been filed, an unreasonable amount of time had passed
without a decision. Subsequently, the Board
denied the Government's motion for reconsideration.
In
The Sithe Group, LLC dba TSG Industries, the ASBCA
dismissed, as untimely, an appeal filed almost two and a
half years after the Contracting Officer's decision because:
(i) the contractor offered no evidence that the Contracting
Officer had led it to believe the Contracting Officer was
reconsidering his decision; (ii) a later unilateral mod that
made no demand for payment on the contractor was not a
government claim and did not vitiate the Contracting
Officer's decision; and (iii) there was no equitable tolling
because there was nothing to show that the contractor had
diligently pursued its rights or that any extraordinary
circumstance had prevented it from filing its appeal. |
April 26 |
In
L3Harris Technologies, Inc., an unsuccessful scattershot
post-award protest, the Court of Federal Claims held,
inter alia, that: (i) the agency properly evaluated the
awardee's proposal in accordance with the stated evaluation
criteria rather than the proposal preparation instructions;
(ii) the plaintiff misinterpreted an evaluation criterion
that applied to one subfactor as if it should be the
standard for them all; (iii) the agency assigned a weakness
to the awardee's proposal under the correct subfactor rather
than the one espoused by the plaintiff; (iv) there was a
rational basis for the weakness (rather than deficiency)
assigned to one aspect of the awardee's proposal; (v) the
allegation that the agency should have assigned multiple
weaknesses, rather than a single weakness, to the awardee's
proposal was mere quibbling with the agency's judgment, to
which court owed deference; (vi) there was a rational basis
for the agency's cost realism analysis, including the spare
parts cost analysis; (vii) there was a reasonable basis for
the agency's evaluation of the awardee's costs associated
with exercising options; (viii) the agency did not treat
proposals unequally because the sections of the competing
proposals in question were not substantially identical;
(ix) the agency's evaluation was adequately documented; and
(x) the plaintiff failed to allege the necessary hard facts
demonstrating any agency impropriety in handling a possible
issue of conflict of interest or unfair advantage.
DFARS Case 2023-D009: A final rule amends the DFARS to
implement section 808 of the NDAA FY 2023, which limits the
number of low-rate initial production lots associated with a
major defense acquisition program under certain
circumstances.
DFARS Case 2022-D014: A proposed rule would amend the
DFARS to implement section 822 of the NDAA for FY 2022,
which provides procedures and approval and reporting
requirements for contracts awarded as prizes for advanced
technology achievements. Comments are due by June 24.
DFARS Case 2021-D020: A proposed rule would amend the
DFARS implement section 1024 of the William M. (Mac)
Thornberry NDAA FY 2021, which is intended to increase
compliance with military cargo preference requirements.
Comments are due by June 24.
DFARS Case 2022-D016: A proposed rule would amend the
DFARS to implement section 815(b) of the NDAA for FY 2012,
which addresses the validation of proprietary data
restrictions, specifically by increasing the validation
period for asserted restrictions from three years to six
years and to provide an exception to the prescribed time
limit for the validation of asserted restrictions if the
technical data involved are the subject of a fraudulently
asserted use or release restriction. Comments are due by
June 24. |
April 24 |
The GAO sustained a protest by
Criterion Corp.
because the agency's price realism analysis, which concluded
the protester's price was unreasonably high, did not take
into account its proposed technical approach, including its
proposed labor mix or labor utilization strategy. |
April 23 |
Federal Acquisition Circular (FAC)
2024-05 has been published and includes the following
item:
FAR Case 2022-006: A final rule amends the FAR to focus
on current environmental and sustainability matters and to
implement a requirement for agencies to procure sustainable
products and services to the maximum extent practicable. |
April 22 |
In
Jacqueline R. Sims d/b/a JRS Staffing Services, an
unsuccessful preaward protest, the Court of Federal Claims
held that the solicitation's terms relating to how the
agency would check the credit reports of proposed contractor
employees were sufficiently clear to comply with all
applicable FAR requirements. The court reached the same
conclusion in a
companion case.
In
Jemison & Partners, Inc., the Court of Appeals for the
Federal Circuit affirmed the
prior ASBCA decision that the contractor was to be paid
only for actual quantity of topsoil placed as opposed to a
lump sum based upon an estimate of how much would be
required.
In Framaco
Int'l, Inc., the CBCA denied the contractor's claims
involving (i) patent ambiguities in the solicitation
concerning which the contractor had failed failed to timely
inquire and (ii) conditions at site that it should have, but
did not, investigate or bring to the Government's attention
prior to bidding. The Board also noted that the contractor's
reliance on statements from a COR who lacked the authority
to change the contract was ill-advised and unavailing.
In
Independence Constr., Inc., which involved a contract
whose default had not been challenged on appeal, the CBCA
held that: (i) the contractor was not entitled to payment
for excavation work that did not meet the contract
specifications, especially where the amount the contractor
sought was dwarfed by the amount the Government had to spend
on a reprocurement contractor to fix the defective work;
(ii) the contractor was not entitled to the cost of a survey
that it voluntarily undertook to perform absent direction
from the Contracting Officer; and (iii) the Board lacked
jurisdiction over a claim for the costs of a second survey
because that claim had not previously been presented to the
Contracting Officer for a decision. |
April 19 |
In
GBA Associates Limited Partnership, although expressing
sympathy with a firm that had not been paid for providing
security services to the Afghanistan government under an
Afghan contract that utilized funds provided by the United
States to Afghanistan and that was approved by the United
States, the Court of Federal Claims dismissed the suit
because the firm did not allege facts sufficient to prove
that it had an implied-in-fact contract with the United
States to compensate it for the shortfall in funds owed by
Afghanistan. Specifically, the firm did not allege facts
sufficient to establish that the United States had the
intent to contract with it as a guarantor. |
April 18 |
In
FYI - For Your Information, Inc., an unsuccessful protest,
the Court of Federal Claims held that: (i) under FASA, it
lacked jurisdiction over a protest of the agency's
determination that the plaintiff was not eligible to compete
for a task order procurement set aside for WOSBs because the
plaintiff was not a certified WOSB under the new regulations
requiring such a certification; and (ii) the plaintiff had
waived its objections to clear provisions in two
solicitations requiring WOSB certification by failing to
object prior to submitting its proposals (such a protest
would have been fruitless even if it had been timely
raised). |
April 16 |
In Size Appeal of
Saalex Corp. d/b/a Saalex Solutions, Inc., which I
should have discussed along with the
McLaughlin
decision in the April 11 entry below, the SBA's OHA once
again held that, for an unrestricted, unpriced MAC, the
previous version of 13 C.F.R. § 121.404(a)(1)(iv) applicable
at the time stated that size was to be determined as of the
date of the original award.
In
VSBC Protest of Marathon Industrial Equipment, LLC,
a successful protest, the OHA held that the challenged firm
failed to provide requested information concerning whether
its SDV's continued employment with an outside firm would
allow him time to exercise the required control over the
challenged firm.
In
SSI Claimsnet, LLC, and Availity, LLC, which involved
unsuccessful consolidated post-award protests, the Court of
Federal Claims denied the protesters' motions to supplement
the administrative record with the results of evaluations
from a similar, but separate, procurement that allegedly
would have shown evaluation results inconsistent with the
challenged evaluation in the current protests and then held
that: (i) under the agency's reasonable interpretation of
the protester's less that perfectly clear proposal on this
point, the evaluators' finding that the protester's proposed
approach was "infeasible" had a rational basis; (ii) the
agency treated one aspect of the protester's proposal
unequally with a substantially indistinguishable aspect of
the awardee's proposal but there was no prejudice because
correcting that error would not have overcome the other
technical advantages of the awardee's proposal; (iii) the
agency's price reasonableness analysis had a rational basis,
as did its finding that the protester's price was
"unreasonable," making it ineligible for award, especially
given that the protester's price was more than a standard
deviation higher than the average; (iv) the agency's
conclusion that the protester's pricing was unbalanced had a
rational basis and was consistent with all applicable regs;
and (v) the agency was not required to consider each of the
awardee's CLINs separately in evaluating whether its pricing
was unbalanced. |
April 13 |
In
Global K9 Protection Group LLC and Michael Stapleton Assocs.
LTD. v. United States, after an amazingly detailed
recitation of the lengthy history of the underlying protests
and a scathing condemnation of the Postal Service's
inadequate procurement guidelines, the Court of Federal
Claims held that: (i) an awardee's long belated motion to
intervene in a bid protest was mooted by the fact that it
had been terminated for default by the time of its attempted
intervention; and (ii) that party had waited far too long
(11 months) to attempt to intervene after it was aware or
should have been aware of its right to do so. The motion to
intervene was in essence a motion for reconsideration of an
injunction the court already had issued. |
April 11 |
In
Size Appeal of McLaughlin Research Corp., the
SBA's OHA held that although the arguments raised by the
appellant, itself, on appeal were meritless, the prior
version of 13 C.F.R. § 121.404(a)(1)(iv) effective at the
relevant time for this appeal stated that size for an
unpriced IDIQ MAC was to be determined at the time of
initial award rather than at time of an order, so the OHA
remanded the case to the SBA to examine the issue under the
correct version of the reg. |
April 9 |
In
Hughes Group LLC, the CBCA reduced an EAJA award to the
extent the successful contractor/litigant had unduly and
unreasonably protracted the final resolution of the dispute
by rejecting settlement offers and mediation. |
April 7 |
In
Associated Energy Group, LLC, an unsuccessful preaward
protest alleging that the agency failed to adequately
mitigate an inadvertent disclosure of competitively useful
information to the plaintiff's competitor/incumbent, the
Court of Federal Claims: (i) refused to consider a lengthy
declaration by the plaintiff's CEO consisting largely of
post hoc speculations as to how a competitor might use
the information at issue; and (ii) held that the agency's
investigation of the situation was reasonable, as were its
conclusion that the information was not competitively useful
and that further mitigation was unnecessary.
In
AccelGov, LLC, an unsuccessful post-award protest, the
court held that: (i) in a procurement conducted under FAR
Part 8.4, the agency was not required to hold FAR Part 15
discussions before determining proposals were unacceptable,
especially where the solicitation clearly stated the agency
intended to award without discussions; (ii) the agency's
evaluation of the protester's technical proposal was
reasonable and would not be second-guessed by the court; and
(iii) the protester had waived its right to object to the
solicitation's personnel experience requirement by waiting
until after proposals were submitted. Concerning the second
holding, the court noted:
This Court routinely holds that contracting officers enjoy
"broad discretion with respect to evaluation of technical
proposals," and the Court typically does not “second-guess
the technical ratings that the source selection committee
gave to each offeror.” [citations omitted] However,
unsuccessful offerors repeatedly ignore this. To again
emphasize this important point, agencies exercise broad
discretion when determining the scope of an evaluation
factor. [Emphasis added] |
April 4 |
TLS Joint Venture, LLC, won its GAO protest because the
awardee’s required registration in the SAM pursuant to FAR
52,204-7 lapsed between the close of the solicitation period
and the award of the contract.
GSAR Case 2022-G505: Effective May 2, a final rule
revises GSAR clause 519.870–2, which contains lists of the
clauses that should (and should not) be used in
solicitations, contracts, and orders in accordance with the
provisions of Section 8(a) of the U.S. Small Business
Administration Act as implemented by FAR subpart 19.8 and
GSA’s 8(a) Partnership Agreement.
The ASBCA's website
is still messed up (and thus almost all of my links to ASBCA
decisions are still broken as described in the March 26
entry below). Until they finish fixing their own website
errors, I'm not going to start the process of correcting my
links. |
April 3 |
In
Clean Team Janitorial Service, Inc., an unsuccessful
protest by the incumbent contractor against the award of a
follow-on set-aside 8(a) contract, the Court of Federal
Claims held that: (i) although the plaintiff's reporting of
alleged PIA violations was timely (because informal
statements to its on-site janitorial staff would not be
immediately imputed to the business owners), the agency's
two independent investigations finding no merit to the
allegations were "more than sufficient"; (ii) even after
correcting for admitted ministerial errors, the value of
procurement fell below the amount that would require
competition among eligible 8(a) firms; and (iii) regardless
of its status at the beginning of this process, the awardee
was an 8(a) certified joint venture by the time of the
latest award to it after series of corrective actions
undertaken by the agency in response to earlier protests. |
April 1 |
In
Raytheon Co., an unsuccessful protest against the
protester's elimination from a competition due to the
"appearance of impropriety" in its hiring of a retired
agency technical expert, the Court of Federal Claims noted
the
broad discretion given Contracting Officers in making
such a determination, requiring only that the determination
be supported by reasonable evidence in the administrative
record, with no requirement that there be a showing of an
adverse effect on the challenged competition. In other
words, you have next to no chance of successfully
challenging such a determination.
In
ASG Solutions Corp., dba American Systems Group, a case
relying on contract interpretation principles, the court
held that: (i) reading all its provisions together, a
service contract task order required the contractor to
assemble a team of 20 qualified professionals at a fixed
monthly rate as described in its proposal and was not an
illegal personal services contract because the contractor
maintained control over its team member employees even
though the Government reviewed resumes and approved hires;
(ii) the contractor's failure to provide the required fully
staffed team was grounds for a default termination despite
the contractor's argument that it had not failed to perform
the actual requirements of any assignment; and (iii) the
Contracting Officer considered the factors in FAR
49.402-3(f) prior to the termination.
In
Size Appeal of Imagine One Technology & Management, Ltd.,
the SBA's OHA held that: (i) the challenged firm was not
required to recertify its size for a set-aside task order
award under the former version of the SBA's regs
applicable at that time; and (ii) there was no change
in controlling ownership necessitating a recertification
because the owner retained a majority interest.
In
NAICS Appeal of CueBid Technologies, Inc., the
OHA held that in a solicitation to provide sludge
dewatering/drying technology or alternatives for reducing
the weight and volume of daily sludge production with
maximum drying efficiency through additional equipment
installation in a waste treatment plant, the appropriate
choice was NAICS code 541330 ("Engineering Services") as
opposed to the Contracting Officer's choice of NAICS 562211
("Hazardous Waste Treatment and Disposal").
In
NAICS Appeal of Salvadorini Consulting, LLC, the
OHA held that in a solicitation to lease an MRI machine and
accompanying trailer, the Contracting Officer's designation
of NAICS code 532490 ("Other Commercial and Industrial
Machinery and Equipment Rental and Leasing") was preferable
to the appellant's choice of NAICS 621512 ("Diagnostic
Imaging Centers").
In VSBC Appeal
of NIJI, LLC, the OHA denied an appeal of a
decision rejecting a firm's application for certification as
an SDVOSB because conflicting and ambiguous provisions in
the firm's Operating Agreement and other documentation did
not clearly establish that the SDV exercised full discretion
and decision-making authority over the firm's day-to-day
operations.
In
VSBC Protest of
Systematic Innovations, LLC, the OHA denied a
protest of a firm's SDVOSB status because the challenged
SDVOSB JV included a certified SDVOSB as its managing
venturer, and the JV agreement was sufficiently detailed as
to the parties' respective responsibilities considering the
indefinite nature of the contract contemplated by the
solicitation.
In VSBC
Protest of Aero-Tel Wire Harness Corp., the OHA
upheld a protest of a firm's SDVOSB status because the
challenged firm was not a certified SDVOSB for purposes of
the current solicitation and had not completed the process
of re-establishing an expired certification.
Federal Acquisition Circular (FAC)
2024-04 has been published and includes the following
item:
FAR Case 2022-010: Effective May 1, a final rule amends
the FAR to add the framework for a new FAR Part 40, which
will contain the policies and procedures for managing
information security and supply chain security when
acquiring products and services. The guts of the new Part
are still to come in future rulemaking. (Was this really
worth a whole FAC before the contents of the new Part were
promulgated?)
In
Gardner Construction & Industrial Services, Inc., the
CBCA denied the Government's preliminary motion to dismiss
for lack of jurisdiction based on the fact that the
contractor's new owner (who filed the appeal) had bought all
the stock of the original contractor. The Board reasoned
that the CAFC's precedent in
Engage Learning, Inc., established that all that is
required for an initial determination of jurisdiction is a
non-frivolous allegation of a contract with Government,
which was made here, so any motion to dismiss will have to
be decided on the merits.
In
MLU Services, Inc., the CBCA denied (as frivolous and
without requiring a reply) the Government's motion to
dismiss a portion of an appeal for failure to timely comply
with the Board's order for the contractor to file a response
within 15 days to the portion of the Government's answer
asserting a counterclaim. The Board noted that the
Government had filed its motion only four days after the
missed deadline and that dismissal for failure to prosecute
is a harsh sanction which should not be applied to a single
failure to comply with an order from the Board.
In
Quality Trust, Inc., the CBCA dismissed allegations in
the Complaint regarding reformation of the contract for
mutual mistake, partial termination of the contract, and the
amount of final payment due because they were not tied to
the amount in the claim previously presented to the
Contracting Officer. The Board, however, denied the
Government's motion to dismiss for failure to prosecute
because the contractor's failure to comply with the Board's
directions could not yet be considered "egregious." |
March 29 |
Pernix Federal, LLC won its GAO protest because the
State Department's determination upon voluntary corrective
action that the original awardee was not properly qualified
under The Omnibus Diplomatic Security and Antiterrorism Act
of 1986 and SAM registration requirements to submit a
proposal in a multi-phase solicitation for an overseas
construction project was based on an impossible requirement
for a
de facto joint venture to register in SAM, which could not be
harmonized with the phase 1 and 2 prequalification notices
and the Department of State’s current regulations that
permit a
de facto joint venture to qualify under the Security Act, and
specifically, for the offeror to be awarded a contract and
provide performance guarantees from its affiliates. The
interesting part of the decision is that the GAO relied on
the "significant issue" exception (4 C.F.R. § 21.2(c)) to
its timeliness rules to permit an untimely protest of an
unambiguous requirement in the original solicitation
language, something the GAO almost never does.
The
SBA has corrected a technical error in the definition of
substantial bundling that appeared in a final rule
entitled "Ownership and Control and Contractual Assistance
Requirements for the 8(a) Business Development Program,"
which improperly limited substantial bundling to BPAs
entered against a GSA Schedule Contract. The correction
removes that limitation so that the definition of
substantial bundling applies to all BPAs.
GSAR Case 2020-G512: The GSA proposes to remove the
requirement for lease offerors to have an active SAM
registration when submitting offers and instead allow offers
up until the time of award to obtain an active SAM
registration. Comments are due by May 28. |
March 28 |
The ASBCA's website's list of cases is still largely
unusable with broken links. Somebody should have done some
bug checking before the new site went live.
In
Kandahar Mahali Transit & Forwarding LTD., the ASBCA
held that: (i) it lacked jurisdiction over decisions that
the contractor failed to timely appeal because the
Contracting Officer's willingness to reconsider certain
decisions did not imply he was reconsidering all of them,
and for six decisions denying payment where the Contracting
Officer offered the contractor the opportunity to submit
invoices but the contractor failed to do so, there was no
dispute for the Board to adjudicate; (ii) despite some less
than stellar word choice, the release language in a mod was
a general release of the contractor's claims; and (iii) the
contractor's lack of appreciation of the ramifications of
what it was signing was not an excuse, plus the contractor
did not establish it signed the release under duress: "[The
contractor] has not identified any evidence showing that it
accepted the terms of the settlement involuntarily, that it
had no alternative to acceptance, or that the government
engaged in coercive acts."
In
Woolpert, Inc., the ASBCA held it lacked jurisdiction over
an untimely appeal because the contractor had no reasonable
basis to conclude the Contracting Officer was reconsidering
the decision at a meeting held between the parties after the
decision was issued:
Based on our review of the record, including the video of
the December 8, 2022 meeting, the Board concludes that
Woolpert did not have a reasonable basis to believe that the
contracting officer was reconsidering her final decision.
Rather, the record demonstrates that Woolpert simply refused
to accept “no” for an answer. . . . At the December 8, 2022
meeting, the contracting officer and another USACE official
informed Woolpert at least four times that the decision was
final and that Woolpert could appeal the decision if it
disagreed. The contracting officer also made it clear that
she had agreed to the meeting only as a courtesy due to
their past relationship and to assure Woolpert that USACE
had thoroughly vetted the decision. While it is true that
the contracting officer stated at the end of the meeting
that she would speak with other USACE officials, she said
this only after Woolpert continued to badger her. She never
stated that she would reconsider the decision, and a
Woolpert official acknowledged that the decision was final.
In
BCC-UIProjects-ZAAZTC Team JV, the Court of Appeals for
the Federal Circuit affirmed the prior ASBCA decision
dismissing an appeal for lack of jurisdiction because the
person who submitted the claims was not authorized to do so
on behalf of the contractor. Of course, I cannot link to the
prior ASBCA decision while the Board's website is messed up.
In
PGB Hanger, LLC, the Court of Federal Claims dismissed a
suit filed as a Fifth Amendment takings claim because it was
actually a contract dispute involving property rights
allegedly taken under plaintiff's contract with the
Government: "Although [plaintiff] is the master of its own
complaint, it may not create Fifth Amendment liability by
artfully pleading around its contract claims. It is
represented by attorneys, not alchemists."
In
Wolf Creek Railroad, LLC, the court
dismissed the suit because: (i) the plaintiff failed to
prove that it had submitted a certified claim letter for a
decision or that such a letter had been received; and (ii)
where a BOA specifically stated that the Government was not
a party to tenant use agreements (TUA) that might be
executed under it, the plaintiff/party to a TUA was not in
privity with Government even though Government had
specifically authorized a TUA with it:
A middleman is not automatically an agent. While the Army
did provide direction and authorization to [its contractor]
in discrete situations, it also apparently intended to use
[its contractor] "as a buffer between it and the claims of
the subcontractors." [citation omitted] Thus, the agreements
here have not created an agency relationship between [the
contractor] and the Army, and [plaintiff] is not in privity
of contract with the Government.
In
MLB Transportation, Inc., the court: (i) denied the
Government's motion for summary judgment that the contract
was void
ab initio due to the contractor's allegedly false
representation as an SDVOSB because factual issues remain
concerning that allegation; (ii) held that the contractor's
claims based on allegedly faulty trip volume estimates were
time barred because they accrued more than six years before
they were submitted, and the letter contractor relied on to
avoid that result was not sufficient to constitute a claim;
(iii) held that the contract was patently ambiguous as to
whether it was a requirements contract, and, therefore,
contractor, by failing to timely inquire, lost its ability
to make a claim for breach of requirements contract; and
(iv) noted that material issues of fact precluded summary
judgment on the contractor's changes claim. |
March 27 |
The ASBCA's modified website list of cases is still messed
up, including broken links for older cases. I'm hoping they
get their act together soon.
In
The Haskell Co., the ASBCA denied the Government's motion
for summary judgment that a bilateral release barred the
contractor's claims because there were material disputed
facts as to whether there was a meeting of the minds between
the parties that "the delays and disruptions arising out of
. . . the work as herein revised” in Mod 1 included the
contractor's costs incurred due to unusually severe weather
and seasonal differences allegedly resulting from the
Government's project design changes that pushed construction
into adverse weather periods.
DFARS Case 2023-D011: A final rule amends the DFARS to
to implement section 856 of the James M. Inhofe NDAA for FY
2023, which (i) transfers section 831 of the NDAA for FY
1991 to 10 U.S.C. 4902 and authorizes the DoD Mentor-Protégé
Program on a permanent basis and (ii) extends the term for
program participation and removes the term limitation for
mentors to incur costs under mentor-protégé agreements
entered into after December 23, 2022.
DFARS Case 2020-D011: A final rule adopts with changes
the prior interim rule amending the DFARS to implement a
section of the NDAA for FY 2020 that prohibits DoD
procurement of fluorinated aqueous film-forming foam
containing in excess of one part per billion of
perfluoroalkyl and polyfluoroalkyl substances after October
1, 2023, unless an exemption applies.
DFARS Case 2023-D023: A final rule amends the DFARS to
to incorporate revised thresholds for application of the
World Trade Organization Government Procurement Agreement
and the Free Trade Agreements, as determined by the United
States Trade Representative.
DFARS Case 2020-D026: A proposed rule would amend the
DFARS to remove a DFARS solicitation provision and modify
the text of an existing DFARS contract clause (both of which
related to the transportation of supplies by sea) to include
the operative text of that former DFARS solicitation
provision. |
March 26 |
The ASBCA has changed its website addresses for its
decisions. The changes break all my past links to their
cases. This may be a real mess to correct because so far it
does not look like there is a common change that I can make
by way of a universal "find and replace" command. Yuck.
This is a work in progress even on the ASBCA's website
because when you click on the names of their older cases,
you get an error. So, they've broken their own links, as
well as mine. I will wait to start making corrections until
they get their own site in order. It seems that some of
their own new links may be a work in progress because, in
addition to the fact that many of their own new links do not
work, the format looks weird, e.g.,
https://www.asbca.mil/LinkClick.aspx?fileticket=a00H_jMI-8M%3d&portalid=143.
In
Patricia I Romero, Inc., dba Pacific West Builders, the
ASBCA denied the contractor's defective specification claim
because the Spearin doctrine does not apply if
contractor does not comply with the specs. However, the
ASBCA denied the Government's motion for summary judgment on
other matters (e.g., the contractor's standby costs
claim) due to disputed material issues of fact.
In
Heffler Contracting Group, the ASBCA denied the
Government's motion to dismiss an appeal of a default
termination for lack of jurisdiction. The Board held that
the fact that the contractor had raised the affirmative
defense of excusable delay in its Complaint without having
previously submitted a claim for a time extension to the
Contracting Officer did not deprive Board of jurisdiction
over the basic appeal of the termination because it is a
government claim, and the Board could have required the
Government to file the Complaint. Reading this case along
with those that require the contractor to present its
time-extension claim to the Contracting Officer, I suppose
what the Board is saying is that it can proceed to hear and
decide whether the Government has met its burden of
initially establishing the propriety of the default, but, if
the contractor wants to raise the affirmative defense, it
will have to present that claim to the Contracting Officer
while this appeal from the default is ongoing and then, once
its time extension claim is denied, appeal that to the Board
and have it consolidated with this appeal. I would question
whether that process makes sense. |
March 25 |
MVM, Inc. won its GAO protest because: (i) the record
did not establish how the agency concluded one of the
awardee's key personnel met all the solicitation's
experience requirements; and (ii) the record did not explain
whether, or how, the Contracting Officer, who should have
been aware of the awardee's prior False Claims Act
settlement, took that into account in making his updated
affirmative responsibility determination. |
March 22 |
In
Alexander CPA PLLC, the CBCA held, inter alia,
that: (i) even if the Government has fulfilled its
ordering
obligation by ordering the minimum quantity in an IDIQ
contract, the Government can still breach that contract's
implied duty of good faith and fair dealing arising out of
other express obligations; and (ii) a reference to an
"applicable" VA Financial Policy in the PWS, without more,
did not "incorporate" that policy and thus did not impose a
contractual duty on the Government to follow it.
In
Rock Supremacy LLC, the CBCA held that it lacked
jurisdiction over an appeal filed by a subcontractor of the
prime contractor to which the Contracting Officer's decision
had been addressed.
In
Woirhaye Logging Co., the CBCA denied the Government's
motion to dismiss an appeal allegedly sounding in tort
because alleging that the Government negligently failed to
fulfill its contractual duties is sufficient to establish
the Board's jurisdiction. |
March 20 |
In
Williams Bldg. Co. (a decision difficult to summarize
because, as the Board notes, both parties went off on
tangents in their pleadings and arguments), the CBCA denied
the contractor's motion to strike the Government's
"affirmative defense" to the contractor's T for C claim.
Specifically, the Government alleged that the contractor had
progress billed the Government for certain subcontractor
costs that it "falsely certified" it had reimbursed them
for, which was a prior material breach. The contractor
maintained this was an allegation of fraud over which the
Board lacks jurisdiction. The Board reasoned that because
the T for C turned the fixed-price construction contract
into a cost-reimbursable one, the Government's defense was
not really an affirmative defense and did not require the
Board to determine an issue of fraud since all the Board
would have to do would be to determine the quantum of costs
incurred to the date of termination. |
March 18 |
In JKB
Solutions and Services, LLC, on cross motions for
summary judgment concerning the Government's alleged
liability for breach of contract for failure to order the
required number of instructional courses, the Court of
Federal Claims held that: (i) the contract to provide all
instructors, transportation, supervision, and non-personal
services necessary to perform instructor services was a
commercial items contract because it was on SF 1449 for
commercial items, explicitly incorporated the standard
clauses for commercial items, was for the provision of
generic instructional services rather than services unique
to the Government, and resulted from market research that
determined commercial services for this work were available,
especially where the contractor failed to object to that
designation prior to award; (ii) because the contract was a
commercial item contract, the termination clause in
incorporated clause FAR 52.212-4 was applicable, and the
Government could use the presence of that clause to support
its constructive termination for convenience defense; (iii)
even if FAR 52.212-4 were not applicable, the normal
fixed-price convenience termination clause (FAR 52.249-2)
would be incorporated via the Christian doctrine;
and (iv) material issues of fact remain whether the
Government breached the contract and, if so, whether it
acted in bad faith or abused its discretion, which would
render the constructive termination for convenience doctrine
inapplicable. |
March 15 |
In
Size Appeal of BC Technical Center, LLC d/b/a BC
Engineered Products, the SBA's OHA held that the
Area Office erred in finding affiliation via the newly
organized concern rule because the challenged firm was not
spun off from the alleged affiliate.
In
NAICS Appeal of First Nation Group, LLC, the OHA
held that the proper NAICS code in a solicitation to procure
Medical Emergency Alert Devices for the agency's Prosthetics
Sensory Aid Service was the Contracting Officer's choice of
334220 ("Radio and Television Broadcasting and Wireless
Communications Equipment Manufacturing") as opposed to the
appellant's choice of NAICS 334510 ("Electromedical and
Electrotherapeutic Apparatus Manufacturing").
In VSBC
Protest of JBL System Solutions, LLC, the OHA
dismissed a protest alleging (without any evidence) only
that the challenged firm was not a certified SDVOSB,
especially where the record showed the challenged firm was
certified. |
March 14 |
In
VSBC Protest of
Systematic Innovations, LLC, the SBA's OHA held
that the challenged firm was a qualified SDVOSB JV because:
(i) the joint venture agreement (as supplemented by the
joint venture operating agreement and addendum) adequately
described the equipment and services to be provided by each
member of the JV, especially for this indefinite
procurement; (ii) references to "collaboration" between the
members in the agreements did not give the non-managing
member of the JV negative control where the agreements did
not give that firm any decision-making authority or the
power to block actions or decisions of the managing
venturer, which retained the exclusive power and authority
to manage the business and the affairs of the JV; and (iii)
the JV's recordkeeping requirements did not violate SBA
regulations.
In
Size Appeal of HealthVerity, Inc., the OHA granted
the appeal in part and remanded the case to the Area Office
to investigate further whether the CEO and several
co-founders of the challenged firm were former officers or
key employees of Microsoft, which would create affiliation
under under the newly organized concern rule. The OHA also
held, however, that the Area Office was not required to
further investigate an identity of interest allegation that
the protester made only generally and without specific
evidence. |
March 13 |
In
Samsara, Inc., an unsuccessful request for an injunction
against contract performance pending resolution of a
protest, the Court of Federal Claims held that: (i)
exhaustion of the USPS' two-step agency dispute resolution
procedure (including review by the agency's Supplier
Disagreement Resolution Officer) is not required for CoFC
jurisdiction; (ii) the agency's decision to reaffirm a
contested award constituted final agency action, rendering
the current suit ripe for review by the court; but (iii) the
protester was not entitled to injunctive relief because the
court "has consistently found unpersuasive arguments [that]
seek to base a showing of irreparable harm on the
possibility that the successful offeror would gain
advantages" during the pendency of a bid protest. |
March 12 |
In
United Facility Services Corp., the CBCA granted the
Government's motion for summary judgment that the O&M
contractor breached its contract by failing to respond
within the required time to a notice of a burst frozen water
pipe in a courthouse. The decision was based, in part, on
the fact that the contractor failed to provide any evidence
of a force majeure excuse in its response to the summary
judgment motion.
In
First Place Auto Sales, Inc., the CBCA held that the
purchaser of an auto sold at public auction failed to
establish that agency misdescribed the condition of its
paint because: (i) the agency did not make any
representations concerning the paint; (ii) prior to the
sale, the agency disclaimed any warranty; (iii) the
purchaser failed to take advantage of its opportunity to
inspect the vehicle prior to the purchase; and (iv) the
remedy sought by the purchaser (the cost of painting the
vehicle) was barred by the purchase agreement. The CBCA also
noted it lacked jurisdiction over a claim involving another
vehicle purchased during the pendency of the current appeal
because that claim had never been the subject of a
Contracting Officer's decision.
In
King Rox LLC, the CBCA granted the agency's motion for
summary judgment related to its rejection of non-conforming
fuel tanks because they violated clear PO requirements that
they be double-walled and UL-142 compliant, reasoning that:
(i) the contractor's argument that it supplied a drawing
before award showing single-walled tanks was contradicted by
the record (including the contractor's own witness); (ii)
the contractor's argument that it notified the Government
after award that its proposed tanks would not be
double-walled was also not supported by the record (the
contractor's post-award drawings did not specifically
indicate the tanks would not be compliant and their silence
on the subject could not be construed as an affirmative
disclaimer, especially when, after accepting the PO, the
contractor had become bound by its terms); and (iii) the
four days the Government took to inspect and reject the
tanks after they were delivered was a reasonable amount of
time, so the Government could not be deemed to have accepted
them.
In
BCI Constr. USA, Inc., on cross motions for summary
judgment, the ASBCA held, inter alia, that: (i) the
contractor was not foreclosed by Blue & Gold Fleet
from challenging the reasonableness of the liquidated
damages assessed in the contract because there was no
allegation that the contractor was aware of the problem with
the rate prior to bidding; (ii) regardless how the
liquidated damages rate was derived, an amount equal to
0.01% of the contract price per day was reasonable; (iii)
factual issues concerning the date of substantial completion
precluded summary judgment on this issue; (iv) the
contractor failed to provide any evidence that the
contract's concrete mix specification was defective,
establishing only that its supplier did not manufacture the
type of concrete specified, was unwilling to make changes to
its batch plant to provide the concrete required by the
contract, and ultimately was unwilling to provide the type
of concrete required by the contract specifications; (v) the
contractor failed to establish that the contract made any
representations as to the contractor's excessive seepage
Type I differing site condition claim; (vi) a factual issue
of whether and to what extent the condition that eventually
caused seepage was present at the time of award precluded
summary judgment on the contractor's Type II differing site
condition claim; (vii) issues of lack of notice and superior
knowledge also depended on unresolved factual issues; and
(viii) the contractor was not entitled to additional labor
and material costs allegedly caused by the COVID epidemic
that was not anticipated when the contract was formed. |
March 10 |
In
Ekagra Partners, LLC, et al., which involved
unsuccessful post-award, consolidated protests of awards in
each of two tracks in a solicitation for the award of
multiple BPAs, the Court of Federal Claims held, inter
alia, that: (i) the agency (a) had properly determined
from looking at available information in public databases
that certain proposed subcontractors were not small
businesses under the only NAICS code assigned to the
small-business-set-aside solicitation and (b) had not,
thereby, conducted a "size determination" within the
jurisdiction of the SBA; (ii) the agency correctly
determined that it was not free to rely solely on the
offerors' proposed small businesses' self-certification as
small businesses under allegedly similar NAICS codes because
the definition (scope) of a particular NAICS code is
different from the size standard under that code; (iii)
under Blue & Gold Fleet, the plaintiffs waived
their argument that the solicitation was unclear as to how
the NAICS code requirement would be verified by failing to
protest until after award; (iv) the agency did not engage in
disparate treatment by not reducing one awardee's self-score
for using a large business subcontractor because awardee had
properly scored it as a large business (while the protester
had incorrectly scored it as a small business); (v) the
agency had a rational basis for using the Federal
Procurement Data System to verify whether an offeror's past
performance references met the minimum required dollar
value; (vi) even if the agency made mistakes in evaluating
some of these references, only one failure was required and,
therefore, the plaintiffs were not prejudiced by any
mistakes; (vii) one of the plaintiffs lacked standing to
complain that one awardee should have been declared
ineligible because that plaintiff did not show it would have
had a substantial chance of award had that ineligibility
determination been made; (viii) the agency had a rational
basis for finding a protester did not follow the
solicitation requirement to propose labor categories
"appropriate" for the required tasks; (ix) in most of the
numerous cases alleged by the protesters, the agency did not
apply unstated evaluation criteria and where there were
errors, they were not prejudicial because there were other
valid reasons the protesters were found ineligible for
award; and (x) the agency's explanations for its findings of
ineligibility were either adequate in the circumstances or,
in the cases where they were not adequate, were
non-prejudicial because there were other adequate reasons
for finding the proposals ineligible for award. |
March 7 |
In
PDS Consultants, Inc., an unsuccessful protest of
corrective action, the Court of Federal Claims held that:
(i) the plaintiff waived its right to seek reinstatement of
its contract award by agreeing to the broad release language
in a bilateral settlement agreement terminating its contract
for convenience; and (ii) the agency had a rational basis to
"go back to the drawing board" and undertake corrective
action to correct errors in the procurement.
The SBA
has issued an interim final rule concerning the Women-Owned
Small Business (WOSB) program to specifically recognize that
the SBA Administrator may extend the date of
WOSB recertification where appropriate. Comments are due
by May 6. |
March 6 |
The GAO sustained a protest by
Life Science Logistics, LLC because: (i) the awardee's
facility availability letter did not comply with the
solicitation's requirements; and (ii) the agency failed to
engage in meaningful discussions because it did not mention
a significant weakness in its discussions with the
protester. |
March 5 |
In
Nauset Constr. Corp., the Court of Appeals for the
Federal Circuit affirmed the
prior ASBCA decision that: (i) the contractor was not
prejudiced by the lack of notice of specific appeal rights
in the Contracting Officer's letter terminating the contract
for default where the letter directed the contractor to the
FAR clause that contained those appeal times; and (ii) the
Government's conduct after issuing the default termination
did not vitiate it because the contractor could not have
reasonably concluded the Contracting Officer was
reconsidering the termination decision. The court did note
that the Board had made a harmless error by stating that
events after the 90-day appeal had expired can never be
considered in deciding whether the Contracting Officer has
reconsidered the decision. |
March 4 |
In
Thalle Constr. Co., an unsuccessful post-award protest,
the Court of Federal Claims held that: (i) the alleged
inadequacy of a commitment letter from the awardee's
proposed subcontractor was irrelevant because, in its
revised offer, the awardee proposed to self-perform the
work; and (ii) the awardee's revised proposal included the
correct duration for its construction schedule. The court,
however, found that the agency had not followed "best
practices" in its imprecise description of its evaluations
in both these areas, which had given the protester grist for
its arguments and had made the court's job of assessing
their validity more difficult. |
March 1 |
In
The District Communications Group, LLC and CruxDGC, LLC,
a successful protest, the Court of Federal Claims held that
the Contracting Officer's determination of an impaired
objectivity OCI was irrational, in part because the
solicitation contained a provision that eliminated the
possibility of such an OCI in the circumstances posited by
the Contracting Officer in attempting to justify the
finding.
LOGMET LLC
won its GAO protest because there was no indication in the
agency's price evaluation in a FAR Part 8.4 procurement that
the agency had considered whether several labor categories
contained in the PWS were within the scope of the supposedly
corresponding labor categories contained in the awardee's
underlying FSS contract. |
February 29 |
The GAO sustained a protest by
Global Patent Solutions, LLC, because: (i) although the
Patent and Trademark Office's (PTO) ability to use the
unique alternative competition method authorized by The
Patent and Trademark Office Efficiency Act (PTOEA) and
implemented through section 6.1.1 1 of the PTO Acquisition
Guidelines (PTAG) exempts the agency from most requirements
of standard procurement statutes, the PTO is not free to
award without regard to the factors stated in the
solicitation; and (ii) the awardee's proposal did not comply
with the solicitation's requirements regarding small
business participation. |
February 28 |
USAID seeks public comments by April 29 on a proposed rule
revising its acquisition regulation (AIDAR) to incorporate
new requirements for Protection from Sexual Exploitation and
Abuse (PSEA) and update existing
child safeguarding requirements. This proposed rule
consolidates new PSEA and updated child safeguarding
compliance and reporting requirements with existing
requirements for Counter Trafficking in Persons. |
February 26 |
The State Department proposes to amend its acquisition
regulation (DOSAR) to include a
new contract clause entitled "Nondiscrimination in
Foreign Assistance," which states that contractors and
subcontractors receiving department-funded foreign
assistance funds must not discriminate oc specified bases
against end-users of supplies or services (also referred to
in this rule as beneficiaries and potential beneficiaries)
or in certain employment decisions involving persons
employed in the performance of this contract and funded in
whole or in part with foreign assistance funds except where
target populations are specified in the relevant SOW or as
otherwise required by U.S. law. Comments are due by March
19.
Effective March 18, a final rule adopts, without
change, the SBA's prior proposed rule to utilize the current
statutory alternative size standard for its
7(a) Business and Certified Development Company Loan
Programs, subject to a 34.46 % adjustment for inflation
that has occurred since the establishment of the statutory
alternative size standard in 2010. The inflation adjustment
would increase the size standard’s level for tangible net
worth to $20 million and for net income to $6.5 million. SBA
also is adjusting for inflation the applicable statutory
limits for contract size under the Surety Bond Guarantee
Program. The adjustment increases the contract limit to $9
million and the contract limit for federal contracts if a
federal contracting officer certifies that such a guarantee
is necessary to $14 million.
GSAR Case 2020-G511: Effective March 25, a final rule
amends the GSA's acquisition regulation (GSAR) to update and
clarify the requirements for use of FSS contracts by
eligible non-federal entities, such as state and local
governments.
In
KUNJ Constr. Corp., the ASBCA denied cross motions for
summary judgment because disputed facts existed as to,
inter alia: (i) the Government's accord and
satisfaction and release defenses based on bilateral mods in
that (a) the reasons for the modifications’ time extensions
were unknown, (b) the connections between the work in the
areas addressed by the modifications and the claims are not
clear, and (c) the releases drafted and inserted by the
Government did not indisputably reveal the parties’
intentions; and (ii) whether the contractor's claims were
barred by the contract provisions cited by the Government.
In
StraCon Services Group, LLC, over the protester's
objection, the Court of Federal Claims dismissed a protest
as moot (which the protester conceded) after the Government
agreed to undertake corrective action based on its
conclusion that an OCI existed with regard to the original
awardee. The protester basically wanted to keep the protest
open so that it could argue the original awardee should not
be allowed to compete on the revised solicitation after the
corrective action. |
February 23 |
Federal Acquisition Circular (FAC)
2024-03 has been published and includes the following
two items:
FAR Case 2022-009: An interim rule amends the FAR to
implement regulatory changes made by the SBA to implement
section 862 of the William M. (Mac) Thornberry NDAA for FY
2021, which transfers the verification of small business
concerns owned and controlled by veterans or
service-disabled veterans from the VA to SBA and creates a
certification requirement for SDVOSB concerns seeking
sole-source and set-aside awards under the SDVOSB Program
across the Federal Government. Section 862 provides for a
one-year grace period after the transfer date for SDVOSBs to
submit an application for certification to SBA, during which
SDVOSBs may continue to self-represent their socioeconomic
status in SAM. Comments are due by April 23.
FAR Case 2023-012: A final rule amends the FAR to
incorporate revised thresholds for application of the World
Trade Organization Government Procurement Agreement and the
Free Trade Agreements, as determined by the United States
Trade Representative. |
February 22 |
In
Rita R. Wadel Revocable Living Trust and 229 Jebavy Road,
LLC dba Ludington Industries, the CBCA: (i) denied the
Government's allegation that the assignee of a lease lacked
standing under the Anti-Assignment Act, 41 U.S.C. § 6305(a)
(2018), and the Assignment of Claims Act, 31 U.S.C. § 3727,
because (a) the Contracting Officer's recognition of the
assignee in the final decisions established an
implied-in-fact novation and (b) the assignment was just a
reorganization of trust assets between the same parties and,
therefore, was a transfer by operation of law, exempted from
the Anti-Assignment statues; (ii) held that the
Government/lessee breached the implied covenant not to
commit waste by contaminating the building with lampricide
during the lease term; but (iii) held that the lessor's
recovery for breach of the implied covenant not to commit
waste was limited to the diminution in the building's fair
market value and could not extend to the costs of
demolishing the damaged building and constructing a new one.
|
February 20 |
In
Amentum Svcs., Inc., which involved claims for extra costs
related to the COVID epidemic, the ASBCA held that: (i)
pursuant to FAR 52.222-43(d) and the contractor's collective
bargaining agreement (CBA) for one contract location, which
was specifically made dependent on California law, the
contractor was entitled to an adjustment to reflect its
actual increase in applicable fringe benefits in the form of
COVID related sick leave mandated by California law and the
Navy's 14-day quarantine policy, especially where the
Government failed to allege prejudice from the contractor's
alleged failure to provide timely notice; (ii) the
contractor was not entitled to the same result where another
CBA did not provide for the applicability of California law;
(iii) the Navy's 14 day quarantine requirement was a
sovereign act not directed only at the contractor, which
made performance of each party’s contractual obligations
impossible during the particular 14-day quarantine periods
at issue, thereby establishing a defense by the Government
to liability under the "Changes" clause for any increase in
costs that the contractor suffered as a result of the
quarantine policy; and (iv) COVID and the resultant,
associated federal actions were not anticipated when the
contract was formed and, therefore, could not be the basis
of a claim by the contractor for mutual mistake. |
February 16 |
In
VSBC Protest of McKenna Brytan Industries LLC,
the SBA's OHA sustained the protest because there was no
evidence the challenged firm had applied for SDVOSB
certification prior to the date of its self-certification,
and during the protest, the challenged firm produced no
evidence to substantiate its claimed SDVOSB status or even
argued that it was at least 51% owned, and fully controlled,
by one or more SDVs.
In VSBC
Protest of Thunderyard Liberty JV II, LLC, the OHA
denied challenges to the effective date of an SDVOSB JV
agreement and to various of its provisions, including the
requirement for two signatures on a bank account and
descriptions of the division of responsibilities by the JV
members and the resources required to perform the contract,
both of which were only generally described due to the
nonspecific nature of the solicitation. |
February 15 |
The GAO sustained a protest by
Conti Federal Services, LLC due to a flawed cost realism
analysis. Specifically, after concluding the protester's
proposed labor rates were too low in two categories, the
agency adjusted them upward to equal the protester's own
proposed rate for another labor category (superintendent)
requiring higher qualifications rather than just to the IGE,
which resulted in the protester's offer not being the lowest
offer.
In
Hamp's Constr. LLC, the ASBCA denied a Type I differing
site condition claim because there were no representations
in the contract documents concerning the admittedly
unexpected conditions the contractor encountered at one
point in the site.
In
NetCentrics Corp., the Court of Federal Claims denied the
Government's motion to remand the case to permit limited
corrective action because the proposed corrective action
would not moot all the challenges raised by the protester
and would likely only delay the resolution of the protest.
(I wish the GAO would take this approach instead of
automatically dismissing protests as soon as the agency says
the magic words "corrective action.")
DFARS Case 2022-D019: A final rule amends the DFARS to
supplement the FAR's implementation of E.O. 14005 ("Ensuring
the Future Is Made in All of America by All of America’s
Workers").
DFARS Case 2020-D021: A final rule amends the DFARS to
implement section 372(f) of the NDAA for FY 2020, which
requires DoD contracting officers to include a clause in
contracts when contract working dogs are provided under the
contract.
DFARS Case 2022-D013: A proposed rule would amend the
DFARS to implement section 843 of the NDAA for FY 2022,
which requires offerors to certify that fuel to be provided
for a contract in support of an overseas contingency
operation is not sourced from a prohibited nation or region
and to furnish such records as are necessary to verify their
compliance with applicable export control and anticorruption
regulations and statutes. Comments are due by April 15.
DFARS Case 2021-D002: A proposed rule would amend the
DFARS to to introduce coverage of trademarks and similar
designations, such as popular names and program names.
Comments are due by April 15.
GSAR Case 2022-G519: A final rule amends the GSA's
acquisition regulation (GSAR) to remove Small Disadvantaged
Business Program requirements references to align with the
FAR for consistency. |
February 14 |
In
denying the Government's motion for partial
reconsideration of the ASBCA's
prior opinion in Allard Nazarian Group, Inc. dba Granite
State Manufacturing, the Board held, inter alia,
that FAR 52.216-7(g), does not give the Contracting Officer
an unfettered right to reduce the costs paid to a contractor
without conducting an audit.
In
Dashti Sanat Logistics and General Contracting, the
ASBCA dismissed an appeal because it could not establish
there had been an underlying claim to the Contracting
Officer (the contractor alleged it had submitted a claim but
acknowledged the Contracting Officer had never received it). |
February 13 |
The GAO published two decisions sustaining protests, each
one on multiple grounds.
In
Kauffman and Assocs., Inc., the GAO held that (i) the
agency's assignment of a weakness to the protester's
quotation in the Technical evaluation area for lack of
experience was based on the agency's interpretation of a
solicitation provision that the GAO determined to be
latently ambiguous; (ii) the agency did not evaluate the
quotations on an equal basis where it assessed a significant
weakness to the protester's quotation for failing to outline
a plan to track and deploy CEUs, while not assessing a
similar significant weakness to the awardee's quotation,
which proposed a similar plan in this area; (iii) it was
unreasonable for the agency to assign the awardee an
Excellent rating in the Personnel evaluation factor when its
quotation failed to meet the solicitation's requirements;
(iv) the agency erroneously concluded the awardee had met
the solicitation requirements in the Management factor; (v)
the Past Performance evaluation of the awardee was flawed
because it was based in significant part on the experience
of its proposed project director described in the Technical
volume of the quotation rather than the past performance
examples included in the Administrative volume, which was
supposed to be the source of the past performance
evaluation; and (vi) there was no basis for agency's
conclusion that the awardee's pricing was fair and
reasonable where it did not comply with the solicitation
requirement that its pricing be in line with its underlying
GSA Schedule pricing.
In
Deloitte Consulting, LLP; Softrams, LLC, the GAO held
that: (i) the agency conceded it treated the protesters'
proposals disparately from the awardees' in several areas
where the agency had assigned strengths only to the
awardees' proposals even though the protesters' proposals
were not meaningfully different, and such disparate
treatment was prejudicial given the closeness in rankings of
the proposals; (ii) the agency's evaluation failed to take
into account that an awardee took exception to a material
solicitation requirement; (iii) where the solicitation
specifically stated that price would be evaluated on the
basis of an estimated number of hours per labor category,
the agency could not choose a different method of price
evaluation (even though that method would have been
acceptable had it been specified in the solicitation) and
decline to estimate hours for the majority of labor
categories; (iv) the agency failed to conduct the required
qualitative Past Performance evaluation of proposals, and
record did not support its conclusion that all offerors were
equal in this area; (v) the best value tradeoff was flawed
because it determined a preliminary group of awardees based
solely on price, the lowest ranked evaluation factor, and
then compared the protesters' proposals only in relation to
the lowest ranked (i.e. highest priced) proposal in that
initial group, based primarily on just counting strengths
rather than any real qualitative comparison.
In
Rockwell Collins, Inc., a successful protest, the Court of
Federal Claims held that the agency's cancellation of a
solicitation for proposals to refresh the center console
Fuel System and Flight Display System on the KC-135 aircraft
lacked a rational basis because the agency relied
exclusively on FAR 15.206(e) but did not identify a proposed
amendment to the Government’s requirements or terms and
conditions as required by that provision. |
February 12 |
In CSI
Aviation, Inc. (on
remand from the CAFC), although the CBCA denied cross
motions for summary judgment due to disputed issues of fact,
it held that the contractor's standard commercial terms and
conditions (which the CAFC had held were incorporated in the
underlying schedule contract) could not be disregarded
entirely just because some of them were inconsistent with
federal statutes and regulations when the contractor did not
rely on the disputed provisions in submitting its claims and
the provisions were not contrary to any rights that
Government must assert to defend against the claims. The
Board also noted there were other issues related to the
Order of Precedence clause that had not yet been argued by
the parties, and, therefore, would not be addressed at this
time by the Board. |
February 8 |
In
Thomas Creek Lumber and Log Co., which involved a claim
for breach of a timber-sales contract related to its
termination, the Court of Federal Claims first rejected the
Government's contention that the claim had not previously
been presented to the Contracting Officer because his
decision, itself, signaled his awareness of the amount and
basis of the claim. The court then (i) dismissed two counts
of the Complaint based on contract interpretation because
the Government clearly terminated the contract using a
provision different from the one on which the plaintiff's
claim relied (i.e., due to an environmental
disaster, namely a fire, rather than merely environmental
considerations); (ii) dismissed another count because the
plaintiff failed to cite any contract provision that the
Government had allegedly breached; but then (iii) declined
to dismiss a count alleging that the Government had failed
to follow required rate redetermination provisions because
there were disputed issues of fact that would require
further development in the record. |
February 7 |
In
Health Net Federal Services, LLC, an unsuccessful
post-award protest following corrective action, the
protester attacked the evaluation of the awardee's proposed
small business participation in multiple ways, but the Court
of Federal Claims held that: (i) the agency's evaluation of
the awardee's revised subcontracting plan, including goals
and participation by proposed subcontractors, had a rational
basis; (ii) the awardee's revised proposal did not include
material misrepresentations as to its planned subcontract
participation and commitments; (iii) during discussions, the
agency adequately investigated various aspects of the
awardee's proposal concerning its small business
participation; (iv) the solicitation's subcontracting
percentage was a goal rather than a requirement; and (v)
there were rational bases for the agency's past performance
evaluation related to small business participation and the
agency's responsibility determination related to the
awardee. |
February 6 |
In
Edgewater Construction Services, LLC, which involved
contract interpretation, the CBCA held that: (i) a contract
requirement to "REUSE EXISTING [PNEUMATIC] TUBE TRANSFER
STATION LOCATION TO EXTEND SERVICE” to new structural
additions required the pneumatic tube systems installed in
the new additions to connect to the existing Swisslog
system; (ii) the tube system desired by the contractor would
not connect to the existing Swisslog system; (iii) the
agency did not change the contract by rejecting the use of
the system proposed by the contractor and requiring the
Swisslog system, which was only one that would connect to
existing system; and, therefore, (iv) the contractor was not
entitled to its extra costs of installing the Swisslog
system.
In Alexander
Tyler Corp., the CBCA held it lacked jurisdiction over
an appeal from the denial of an agency-level bid protest.
In
MTS General Trading & Constr., the ASBCA denied the
Government's motion to dismiss an appeal because, as is
common practice in Iraq, the various names for the Iraqi
company performing orders under a BPA referred to a single
legal entity, and the various names for the company's
officer on the BPA, individual orders, and the claim
certification referred to the same individual, so the entity
identified as the contractor in the claim and the individual
who certified the claim were both unobjectionable. |
February 3 |
In
ASRC Federal Technology Solutions, LLC, an unsuccessful
post-award protest, the Court of Federal Claims denied
challenges to multiple aspects of the evaluation, holding:
(i) where the solicitation explicitly informed offerors to
base staffing levels on current requirements rather than
historical levels, the agency's assignment of a weakness to
the plaintiff's proposal in this area would not be
second-guessed where the plaintiff's proposal was based on
historical levels; (ii) there were rational bases for the
assignment of a weakness to the protester's management
proposal based on a perceived inconsistency between its
proposed key personnel and that proposed approach; (iii) the
agency rationally concluded the protester's proposal lacked
sufficient information regarding its proposed labor
categories to perform the work; and (iv) there was a
rational basis for the agency's assignment of a strength to
the awardee's organizational structure.
In NAICS
Appeal of Elevated Technologies, Inc., the SBA's
OHA held that in a solicitation to replace an elevator
system, the Contracting Officer's choice of NAICS 238290
("Other Building Equipment Contractors") was preferable to
the contractor's choice of NAICS 236220 ("Commercial and
Institutional Building Construction") because the former
code specifically covers elevator installation and repair
according the the NAICS Manual. |
February 2 |
Deloitte Consulting, LLP won its GAO protest because the
record did not show that the agency had considered the
impact on contract performance of the awardee's elimination
of a proposed team partner in order to mitigate an OCI. |
February 1 |
In Size Appeal of
Sanford Federal, Inc., the SBA's OHA held that,
even if (as the challenged firm contented) the original size
protest was non-specific, the challenged firm
did not
(i) raise this argument to the Area Office, (ii) respond to
the protest allegations, or (iii) submit requested
information, and, therefore, failed to meet its burden of
establishing that it was a small business.
FAR Case 2023-021: A proposed rule would amend the FAR
to implement a proposed governmentwide policy that would
prohibit contractors and subcontractors from seeking and
considering information about job applicants’ compensation
history when making employment decisions for certain
positions. Under the proposed policy and the proposed
regulatory amendments, contractors and subcontractors would
also be required to disclose the compensation to be offered
to the hired applicant in job announcements for certain
positions. Comments are due by April 1.
The DOT
proposes
to update the regulations governing the procurement,
management, and administration of engineering and design
related services directly related to a highway construction
project that is funded through a discretionary grant
administered by FHWA involving recipients other than state
transportation agencies. Comments are due by April 1.
Effective May 22 unless significant adverse comments are
received by February 22, USAID proposes a
direct final rule amending its acquisition
regulation (AIDAR) to maintain consistency with federal and
agency regulations, remove obsolete material and internal
agency procedures, and make editorial amendments to clarify
the regulation. |
January 31 |
In
REV, LLC, the Court of Appeals for the Federal Circuit
reversed the prior CoFC decision that the protester lacked
standing and held that, assuming (for purposes of deciding
standing) the protester were to prevail on its allegations
of errors in the evaluations of six of the nine offerors
that were ranked ahead of it, the protester would have had a
substantial chance of being selected as one of the awardees
in a solicitation that contemplated at least seven
awardees. |
January 30 |
NFS Case 2023-N002: Effective February 23, NASA is
finalizing a rule to amend its acquisition regulation
supplement (the NFS) by removing NFS 1831.205–671
(Solicitation provision) and NFS 1852.231–71 (Determination
of Compensation Reasonableness) from the NFS and to rely on
similar provisions in the FAR. |
January 29 |
In Oxford
Federal, LLC, over the Government's objections, the
Court of Federal Claims granted the plaintiff's motion to
amend its Complaint filed after oral arguments on the
Government's motion to dismiss the original Complaint
because there was not undue delay and the amendments would
not be futile (i.e., it was possible they would
survive another motion to dismiss).
In
BES Design/Build LLC, which involved contract
interpretation, where a task order was ambiguous on the
question whether the contractor was to be paid on a per
person/per day basis, the court looked to extrinsic
evidence, specifically the parties' conduct before the
dispute arose, and found the parties clearly acted as if
they agreed that was the basis of payment. The court also,
inter alia, denied the contractor's claim for
unabsorbed overhead under Eichleay because the
contractor did not prove it was ever on standby, much less
that it was for an indefinite duration.
In
Royal Hawaiian Movers, Inc., the CBCA held it lacked
jurisdiction over a claim not presented to the Contracting
Officer before the appeal was filed.
In
Aviation Training Consulting, LLC, the ASBCA denied the
Government's motion to dismiss the appeal of a claim for
equitable adjustment for lack of jurisdiction because there
was no indication in the legislative history that Congress
intended to exclude claims involving Section 3610 of the
CARES Act from the operation of the CDA. |
January 26 |
In
Safal Partners, LLC, a protest being dismissed as moot
upon the agency's undertaking of corrective action, the
Court of Federal Claims denied the plaintiff's motion to
modify the protective order to permit it to use protected
materials in other protests at the GAO or the agency related
to the same procurement.
In
GoodEarth Distribution, LLC, the court: (i) denied the
Government's motion to dismiss the contractor's claim for
breach of contract due to nonpayment because the fact that
the Government remitted payment to a fraudster account did
not alleviate it from its duty to pay the contractor; (ii)
held that the contractor did not allege facts that would
support its contention that the Government's actions in
investigating the possible source of the fraud (including
the plaintiff) or denying its CDA claim breached the implied
duty of good faith and fair dealing; and (iii) held it
lacked jurisdiction over the contractor's claim for a
declaratory judgment that the Government's actions amount to
de facto debarment because the declaratory judgment was
not sought in a bid protest or as "incident of and
collateral to" a monetary judgment. |
January 25 |
The GAO sustained a protest by
American Material Handling, Inc.
because in a solicitation for a brand name or equal Caterpillar
980 wheel loader, the agency rejected a quote for failure to
comply with certain salient characteristics of the loader
mentioned on the manufacturer's website but nowhere listed
as required in the solicitation. |
January 24 |
In
ECC Int'l Constructors, LLC, based on the CAFC's
recent holding on appeal that the CDA's sum certain
requirement is not jurisdictional, the ASBCA held that the
Government had forfeited its right to request dismissal of a
claim for lack of a sum certain because it waited until
after the hearing on the merits to do so. The Board reached
reached the same conclusion in a
companion case decided the same day. |
January 23 |
In
Samsara, Inc., a successful post-award protest, the Court
of Federal Claims held that although the agency was not
required to level the playing field by ignoring a
capability obtained by the awardee on a prior contract and
properly downgraded the protester's proposal for failing to
address one required area in the solicitation, the agency
improperly used an unstated evaluation criterion to
downgrade the protester's proposal for lacking a capability
at award that it was not required to have until 180 days
after award.
The ASBCA's website is back up (at
last). |
January 22 |
In
Abdul Mutakaber, the CBCA (interpreting a lease) held
that the withdrawal of U.S. forces from Afghanistan did not
result from the "destruction" of the leased premises under
the "Destruction of Premises" provision, and, therefore, did
not give the Government the right to immediate termination
under that provision. Therefore, the agency's abandonment of
the premises would be considered a constructive termination
for convenience under the separate termination provision,
but the termination clause did not contain any requirement
that the Government formally "return" the terminated
properties to the lessor (or protect them) following the
termination. See also subsequent decision setting
quantum. |
January 18 |
In
VSBC Protest of MicroTechnologies LLC, the
SBA's OHA dismissed a protest as nonspecific because, even
after being ordered to do so, the protester did not provide
any credible evidence that the challenged firm failed to
meet any of VOSB or SDVOSB requirements listed at 13 C.F.R.
Part 128 or the joint venture requirements at 13 C.F.R. §
128.402.
The ASBCA's website is still down today. |
January 17 |
FAR Case 2021-020: A proposed rule would amend the FAR
to implement regulatory changes made by the SBA to update
and clarify requirements associated with the limitations on
subcontracting and the nonmanufacturer rule. Comments are
due by March 18.
The ASBCA's website is still down as I type this. |
January 16 |
In
United Communities, LLC, the Court of Appeals for the
Federal Circuit affirmed the prior Court of Federal Claims
decision denying the plaintiff's motion for an enlargement
of time to file a late notice of appeal to the CAFC because
there was no showing of excusable neglect by the plaintiff,
just a "garden variety" attorney miscalculation of the time
limit for the notice of appeal.
GSAR Case 2022-G514: Effective February 12, a final rule
amends the GSAR to clarify when GSAR clauses apply to FSS
contracts.
I'm sure it's just temporary, but the
ASBCA's own website and the decisions linked there are down
at the moment. |
January 11 |
The GAO sustained a protest by
SierTeK-Peerless JV LLC
because the agency failed to adequately document its
evaluation of the awardee's proposal under the prior
experience factor, specifically what led the agency to
conclude that the size of the prior experience projects
submitted by the awardee was comparable to the work to be
performed under the task order resulting from the current
solicitation.
In
Sonabend Co., the ASBCA denied the Government's motion for
summary judgment due to material issues of fact.
Specifically, the Government claimed that broad, unqualified
release language in two mods meant they constituted a
release and accord and satisfaction of all the contractor's
claims on all task orders, but the fact that a
separate mod was signed for each one of two of the task
orders suggested that the release in either mod was not
intended to cover all task orders (else there would not have
been a need for two mods).
In McCarthy
HITT – Next NGA West JV, the ASBCA denied the
Government's motion to dismiss the appeals on the grounds
that Complaint failed to state any claim upon which relief
could be granted. Specifically, the Board held that: (i) the
contractor sufficiently alleged the elements required for
(a) at least one constructive change claim, i.e.,
that the Government required it to perform in a manner
different from the contract requirements, (b) a constructive
suspension of the work, and (c) a finding of at least one
breach of the implied duty of good faith and fair dealing;
and (ii) the Government's sovereign acts defense was not
conclusively established by the pleadings alone as an
affirmative defense to the entirety of all the claims, as it
must be for the Government's motion to dismiss to succeed.
In
Windamir Development, Inc., the ASBCA held it had
jurisdiction over the contractor's appeal from a default
termination, but not over: (i) its claim of
government-caused delay not previously presented to the
Contracting Officer for a decision; (ii) its request for a
declaratory judgment that its interpretation of certain
contract specifications was correct (because in the
terminated contract, this was no longer a live dispute); and
(iii) its claims for monetary relief because no monetary
claim had previously been presented to the Contracting
Officer. |
January 10 |
In
Central Environmental, Inc., the ASBCA held that the
Government had breached the contract by failing to comply
with a contract requirement that it notify contractor that
access to site would be periodically unavailable or delayed
due to internal road closures during missile testing.
In
Daniels Building Co., the CBCA denied the contractor's
claim for reformation based on an alleged mistake in its bid
that it discovered after award because the mistake was not
apparent to the Contracting Officer prior to award,
especially where the bidder had reconfirmed its bid upon
request for verification by the Contracting Officer before
award.
In
Clean Harbors Environmental Services, Inc., which
involved contract interpretation, the CBCA held that the
contractor's standard services agreement form, which it
submitted with its quote in response to an RFQ for the award
of a purchase order, but which was not incorporated (or
referenced) in the final purchase order, did not become part
of the order, especially where (a) the RFQ specifically
stated that terms and conditions other than those stated in
the RFQ would not be accepted and (b) some of the terms in
the standard services agreement actually conflicted with
those in the RFQ. |
January 9 |
Reading yesterday's publication of the Court of Federal
Claims' decision in
Superior Waste Management LLC, I was at first perplexed as
to why the court was spending the first 30 pages of the
decision discussing in such great detail the differences
among jurisdiction and standing, and the different types of
standing, and prejudice, until I finally read far enough to
realize this was a judge as interested in strongly
criticizing the Federal Circuit's 2023 decision in
CACI, Inc.-Federal
as in deciding the merits of the protest. The Court of
Federal Claims described what it viewed as the questionable
part of the
CACI holding as follows:
On appeal, the Federal Circuit — not sitting en banc, but in
a panel decision — concluded that the "interested party"
issue "presents a question of statutory standing rather than
Article III standing," which is not a controversial
statement per
se. CACI, 67 F.4th at 1151.19 But the
Federal Circuit then swept away decades of its own
jurisprudence in holding that: (1) "[o]ur prior caselaw
treating the interested party issue as a jurisdictional
issue . . . is no longer good law[,]" id.; and (2)
"the issue of prejudice is no longer jurisdictional
unless it implicates Article III considerations, and
our cases to the contrary are no longer good law[,]" id.
at 1153 (emphasis added). With respect to the latter point,
the Federal Circuit further explained that "[t]he issue of
prejudice can properly be resolved by the Claims Court
initially only if . . . the issue need not be
remanded to the agency, for example, if the issue is a
purely legal question." Id. at 1153-54 (emphasis added).
Otherwise, "if the issue has not been addressed in the first
instance by the contracting officer, a remand is necessary
for the contracting officer to address the issue of
prejudice." Id. at 1154.
The Court of Federal Claims then goes on to discuss at
length the what it perceives as the many problems with CACI,
including procedural problems (e.g., overruling prior CAFC
precedent without an en banc decision) and practical ones
(the ambiguities it creates for courts trying to analyze
particular cases). Just when I thought the court had
finished venting and was into the merits of the case, it
returned (beginning on page 36 and continuing to page 43) to
discussing CACI and the problems it created for courts
determining whether prejudice on the merits exists. Finally,
beginning on page 48 (!), the court gets down to the
business of discussing the merits of the protest, concluding
that: (i) the protester did not establish prejudicial errors
in the Government's allegedly flawed unbalanced pricing
analysis; (ii) the mathematical method the protester
advocated the Government should have used in conducting the
unbalanced pricing analysis actually would have diminished
any unbalancing in the awardee's pricing while not
diminishing the protester's own (admittedly) unbalanced
pricing; (iii) the description of the unbalancing analysis
in the solicitation was patently ambiguous, the Government's
interpretation was a reasonable one, and the protester
failed under Blue & Gold Fleet
to raise the issue prior to bidding; (iv) the solicitation
did not prohibit the Government from comparing total prices
to the IGE as part of its pricing analysis; and (v) although
the agency's unbalanced pricing analysis deviated from the
FAR's requirements and was arbitrary and capricious, the
protester did not show it was prejudiced because the
solicitation did not mandate rejection of an unbalanced bid
and the source selection official documented his assessment
of the risk associated with the awardee's out-of-line
pricing, even though the agency did not label it unbalanced.
I come away from the case thinking that little, if anything,
will change for protesters, who will still have to be
careful to allege and establish the elements for
jurisdiction, both types of standing, and prejudice. The
court may very well be correct to fuss about all the extra
work for the court created by the CACI decision,
but that is not something protesters can change.
FAR Case 2019-015: A proposed rule would amend the FAR
to improve consistency between the procurement and
nonprocurement procedures on suspension and debarment, based
on the recommendations of the Interagency Suspension and
Debarment Committee. Comments are due by March 11. |
January 8 |
In
Aegis-KK/GardaWorld Federal Africa, a Joint Venture, a
partially successful post-award protest, the Court of
Federal Claims held that: (i) the agency's evaluation of the
awardee's pricing was not objectionable because the
solicitation did not require the level of granularity in
pricing proposals alleged by the protester; (ii) although
the solicitation did not require that a joint venture
offeror have been in existence for a year, joint venture
partners existing under the same corporate umbrella did not
satisfy the solicitation requirement that the partners have
experience working together with one another for a year;
(iii) letters from proposed key personnel expressing their
interest in the contract and referring to their "agreement"
with the awardee did not satisfy the solicitation
requirement that offerors provide the actual employment
agreements with key personnel, and the agency failed to
explain why it waived this requirement for the awardee,
which requires the court to remand the matter to the agency
for further explanation; (iv) the agency had a rational
basis for accepting the awardee's explanation that it would
meet the solicitation's licensing requirements within six
months and the steps it would undertake to do so, especially
given the nine-month period between the submission of offers
and award; and (v) to the extent the awardee failed to
provide sufficient information required by the solicitation
concerning affiliates and officers, the failure was not
prejudicial to the protester. |
January 4 |
In
Federal Performance Management Solutions, LLC, an
unsuccessful protest, the Court of Federal Claims upheld the
OHA's decision that a mentor-protégé JV was not small for
the procurement in question because its bid was submitted
years after the JV's two-year limit for submitting offers
pursuant to 13 C.F.R. 121.103(h).
In
Construction Helicopters, Inc., a decision interesting
only for its thorough discussion of the standards the court
uses to evaluate requests for additional discovery in bid
protests, the court held that some discovery requested by
the plaintiff would be permitted as the court could not
effectively review the protest allegations without it, but
most of what the protester was seeking was not necessary for
the court's review. |
January 3 |
In
B.H. Aircraft Co., the Court of Appeals for the Federal
Circuit affirmed the
prior CoFC decision without reaching some of the grounds
advanced by the lower court (i.e., lack of standing due to
the bidder's lack of qualifications). The CAFC held the case
should be dismissed for failure to state a claim for
improper bundling because the protester had not alleged that
two or more smaller contracts had been bundled to form the
protested solicitation. |
January 2 |
In
VSBC Protest of
Tomahawk Sourcing, LLC, the SBA's OHA dismissed a
protest that failed to timely and effectively respond to OHA
order to show cause why the protest should not be dismissed
as nonspecific. |
January 1, 2024 |
In
JE Dunn Constr. Co., the ASBCA denied the Government's
request to dismiss the appeal due to the alleged failure by
the contractor to state a sum certain for each separate item
in its claim because the CAFC's recent decision in
ECC Int'l Constructors was that the sum certain
requirement is not jurisdictional so that challenges to it
can be forfeited if raised too late, and here, the
Government did not raise the issue until after the hearing
on the merits (even though the Board had sua sponte
raised the question before the CAFC issued its
ECC Int'l Constructors decision). Subsequently, the Board
denied the Government's motion for reconsideration.
In
Kellogg Brown & Root Services, Inc., the ASBCA, over the
contractor's objections, permitted the Government to amend
its answer to add the affirmative defense of material
misrepresentations because: (i) although the Government
delayed for years in asserting the defense, it did not
unduly delay after the litigation on the
contractor's claims commenced, and, given that the Board is
granting the contractor extra discovery time to prepare for
the defense, the delay did not prejudice the contractor;
(ii) a common law affirmative defense need not be raised in
a Contracting Officer's decision before it can be asserted
at the Board; (iii) the defense does not fall within the
CDA's prohibition on the "agency head to settle, compromise,
pay, or otherwise adjust any claim involving fraud"; and
(iv) it is too early in the proceedings for the Board to
decide whether the affirmative defense will make the
contract void
ab initio (in which case defense cannot be waived)
or merely voidable, which would allow the contractor to
raise the defense of waiver. |
|