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eliminating coverage that is obsolete or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).
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 |
Happy New Year! As usual, I will temporarily retain the last couple of months of the 2023 blog below, but you can find the entire 2023
blog here.
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. |
December 29, 2023
| In
Size Appeal of Global
Pacific Design
Builders, LLC, the SBA's OHA held that the Area Office had correctly dismissed
a protest as non-specific because it only alleged facts concerning
the protested firm's size after the date on which it was required
to self-certify.
In
Global K9 Protection Group, LLC, which involved consolidated
post-award protests by two firms competing on a USPS
procurement (and litigation that has lasted years), the
Court of Federal Claims held that: (i) it would allow supplementation of the administrative
record with written declarations on the issue of whether the challenged firm
made material misrepresentations in its bid because those documents
were necessary for effective judicial review of the protest
allegations; (ii) the awardee intentionally made materially false statements about its past
performance that the agency relied on in making its award decision;
(iii) the Contracting Officer's post hoc conclusion that knowing of the
misrepresentations would not have changed the outcome of the
evaluation was arbitrary and capricious for failing to consider
important aspects of the issue; and (iv) an injunction disqualifying
the awardee from
further performance would issue. The court concluded that the second protester
who already had been
disqualified from the competition due to an OCI had no standing to
participate in this protest, even though it had appealed its
disqualification to the CAFC and was awaiting a decision. The court
also denied the protest allegation that the agency had not
conducted meaningful discussions because the USPS' vague
regulations about discussions do not create the same
obligations as the FAR does. |
December 28 |
Great Lakes Dredge and Dock
Co., LLC won its GAO protest because bids exceeding available
funding justified canceling an IFB, but not its conversion to a
negotiated procurement, where the agency did not defend its decision
to convert based on an argument that the original bids were unreasonable.
In VSBC Protest of M Wilkinson Constr. Co.,
the SBA's OHA held that the fact
that the veteran owner of a VOSB (who had the requisite control over
the challenged firm) lived in a different state was not disqualifying, especially where
the firm did business in multiple states, and the fact that
a minority owner provided building space rent free to the firm was not grounds for disqualification either. |
December 27 |
In
Size Appeal of Forward Slope,
Inc., the SBA's OHA held that the Area Office had incorrectly concluded
that a firm which represented itself as small in connection with
an underlying MAC contract had to re-certify for purposes of a
task order solicitation that did not require recertification when the
firm had been acquired by another firm (and, therefore, was
no longer small) when it submitted its proposal for the task
order award.
In the Matter of WOOD Consulting Svcs., Inc.,
the OHA held that the woman owner of a WOSB firm who worked there from 7:30 am to 3:30 pm every weekday, and then worked at another firm from 3:30 to 5:30 pm and from 7:30 to 10:30 pm
plus weekends had control of the WOSB, and her other job did not interfere, especially where the WOSB's business was computer programming, which does not require that work be conducted from 9 to 5.
Moreover, the fact that
she had the power to remove anyone, including her husband, from their position on the board showed that any alleged control he had was illusory.
In
VSBC Appeal of Divinely Elegant Vines LLC, the OHA dismissed an appeal because it did not establish any
error in the original decision denying SDVOSB status. Specifically, the unanimity provision in the firm's Operating Agreement meant the SDV lacked the required control of the firm.
In VSBC Protest of
Blue Collar Ops, Inc., the OHA dismissed a protest as moot after
the challenged firm was removed from consideration for award. |
December 26 |
GSAR Case 2022-G517: A proposed rule would amend the GSAR to add a
new provision and clause to identify
single-use plastic free
packaging availability for products
under the FSS
with the goal of reducing single-use
plastic packaging. Comments are due by February
26, 2024.
DFARS Case 2020-D029: Effective January 22, 2024, a
final rule amends the DFARS to consolidate existing contract
clauses for the management and
reporting of Government property into a
single contract clause and to replace references to legacy
software applications used for reporting
Government property within the DoD
enterprise-wide eBusiness platform and
convert existing form-based processes
into electronic processes within that
platform.
DFARS Case 2023-D010: A proposed rule would amend the
DFARS to 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. Comments are due by January 22, 2024.
Federal Acquisition
Circular (FAC)
2024-02 has been published and includes the following
item:
FAR Case 2022-003: Effective January 22, 2024, a final
rule amends the FAR to implement E.O. 14063 ("Use of Project Labor
Agreements for Federal Construction
Projects"), which
mandates that federal government
agencies require the use of project labor
agreements (PLAs) for large-scale federal construction projects, where the
total estimated cost to the Government
is $35 million or more, unless an
exception applies. Agencies still have
the discretion to require PLAs for
federal construction projects that do not
meet the $35 million threshold. The
E.O. also directs the OMB to issue
implementation guidance to agencies on
exceptions and reporting.
In NAICS Appeal of Brown Point
Facility Management Solutions, LLC, the SBA's OHA held that in
a solicitation
to perform custodial services and to provide associated management, supervision, labor, transportation, materials, equipment, and supplies at a FEMA facility,
the contractor's choice of NAICS 561720 ("Janitorial Services") was preferable to
the Contracting Officer's choice of NAICS 561210 ("Facilities Support Services").
In NAICS Appeal of Laredo
Technical Svcs., Inc., which involved a solicitation
for medical coding services at a hospital, the OHA chose NAICS code
561499 ("All Other Business Support Services") over both the Contracting
Officer's choice of NAICS 541511 ("Custom Coding Services") and
the contractor's choice of NAICS 561410 ("Document Preparation Services"). |
December 22 |
Chugach Logistics
and Facility Services JV, LLC won its GAO protest because: (i) nothing in the agency record explained why
the protester's management approach was
identified as having some level of risk, which limited its overall
technical rating to Good; and (ii) the past performance rating was flawed because
it was based on evaluating one reference contract as relevant instead
of very relevant, and the agency did not refute the protester's argument
on this issue but, instead,
advanced a post hoc justification for the rating that was
inconsistent with the solicitation's evaluation scheme.
In Washington
Business Dynamics, LLC, the GAO spent most of its decision
discussing standing in the context of the SBA's rules for
determining when firms are required to re-certify as to
their status (here, for a BPA under an FSS contract). After
concluding that the protester had standing, the GAO held
that: (i) there was no basis for the agency's
favorable evaluation of the awardee's quotation where it failed to address
one of of the technical evaluation factors; and (ii) the agency failed to conduct
the required qualitative evaluation of quotations. |
December 21 |
In
Syneren Technologies Corp., et al., which involved unsuccessful protests of
the agency's new awards based on reevaluations of proposals following
the court's prior protest decision in Allicent, the Court of Federal Claims held that:
(i) the agency was not required to seek
remand from the court before undertaking voluntary corrective action,
especially where the plaintiffs did not allege any prejudice from the
remand and would have the same complaints whether or not the
corrective action were the result of a remand; (ii) the corrective action was
not procedurally defective and is not objectionable merely because it
reached the same conclusions as the original evaluation; (iii) three of the
plaintiffs cannot establish prejudice because flaws in their proposals
(which court already determined were rationally evaluated) made them
unawardable; (iv) the agency followed the court's prior decision in
conducting a rational reevaluation, and, therefore, there was no breach
of the implied duty of good faith and fair dealing; and (v) challenges by
individual protesters to various parts of their individual
reevaluations fail because there were rational bases for the agency's
evaluations in each case.
|
December 20 |
In
Fluor Federal Services, Inc., an unsuccessful post-award protest,
the Court of Federal Claims held that: (i) protests that the agency should have utilized a
multiple- versus a single-award BPA and that the agency should have
considered past performance outside the period stated in the
solicitation were both untimely under Blue & Gold Fleet;
and (ii) the remainder of the protester's challenges to the evaluation
were "mere disagreements with the Agency’s discretionary determinations."
In Point Blank Enterprises, Inc.,
an unsuccessful post-award protest seeking
a preliminary injunction, the court held that although the plaintiff
was likely to succeed on
the merits of its OCI allegations due to the absence of documents in
the record showing any adequate investigation of the issue by the
Contracting Officer, no preliminary injunction would issue because the protester had
failed to establish irreparable harm when the solicitation did not
guarantee that any awards would be made, especially "when the harm facing the United States as a result of an injunction is potential
loss of life or serious injury to law enforcement officials."
|
December 19 |
In
Togiak Management Services, LLC, a successful protest against the rejection of
the protester's bids as
nonresponsive due to the fact that the submitted bid bonds were photocopies,
although the Court of Federal Claims rejected the
protester's own arguments, it held that the agency erred by
relying on a line of GAO decisions holding photocopied bid
bonds were nonresponsive, which the court concluded were
erroneous.
|
December 18 |
In
Eastern Shipbuilding Group, Inc., an unsuccessful post-award protest
challenging almost every aspect of the agency's evaluation
of the awardee's and the protester's proposals in a
solicitation for a contract to build ships, the Court of
Federal Claims held, inter alia, that: (i) there
were rational bases for the agency's (a) assignment of a significant strength to
the awardee's proposed
production facilities (despite the fact that they had not yet been
built) and (b) evaluation of the production risk of its proposed
production approach; (ii) the agency could not have taken into account
an alleged risk to
the awardee's proposed schedule caused by additional vessels
the awardee had been contracted to build by
another agency because the contract option awarding this work had not
been exercised at the time of the evaluation; (iii) the agency was not required
to assign schedule risk under multiple evaluation factors and
accounting for it as a production risk was reasonable; (iv) the agency's
decision to evaluate the awardee's past performance as it improved over
time (rather than giving more weight to earlier problems) was
reasonable; (iv) the agency's evaluation of the awardee's price proposal
had a rational basis, including the agency's
decision to consider certain production line item prices as a group rather
than individually, which vitiated the protester's
argument that two individual line items suffered from unbalanced
pricing; (v) because the agency found no unbalanced pricing, it was not
required to conduct a pricing risk analysis; (vi) there were rational bases for
the Government's evaluation of various and sundry aspects of
the protester's
proposal (too numerous to include in this single sentence without
offending the ghosts of my high school English teachers);
(vii) the determination that the awardee was responsible reasonably relied
on, and was limited to, standard sources of information for such
reviews; (viii) although the awardee's certification in compliance with FAR 52.209-5(a)(1)(C) was
inaccurate
in light of an Australian judicial proceeding, the
inaccuracy did not rise to the level of a material misrepresentation,
considering the findings in that proceeding; and (ix) the agency conducted
a reasonable investigation of an allegation of an OCI involving the
awardee's employment of former agency official, finding that no
unauthorized person had access to significant sensitive source
selection information and that even if the former employee had
previously had access to non-public proprietary information, it
was unlikely he had retained it or that it would still be
competitively useful in the contested solicitation, which was issued
three years later.
|
December 15 |
In
LS3, LLC, an unsuccessful protest of the SBA OHA's determination that a firm did not
qualify as SDVOSB joint venture because the non SDV member could
exercise negative control through its position on the joint venture's
management committee, the Court of Federal Claims spent much of its time analyzing the degree of deference it owed the OHA's
decision in this situation--quite a bit as it turns out because the court considered the OHA's holding to be primarily on an issue of fact,
i.e., the amount of negative control that was possible in this situation.
|
December 14 |
In
Scott Technologies, Inc., an unsuccessful post-award protest, the
Court of Federal Claims held that: (i) the agency record was sufficient to show
the agency evaluated self-identified risks of the awardee's proposal, and
the agency was not required to document its evaluation of specific risk
elements to the level of detail advocated by the protester; (ii) interpreted in
the context of the solicitation as a whole, a protested evaluation subfactor
allowed the agency to reward the awardee for exceeding the required production
output (delivery requirements); (iii) discussions should be individually
tailored, so the fact that discussions with the offerors were not identical
does not mean they were unequal or resulted in disparate treatment;
and (iv) the court would not substitute its judgment for agency's and
(merely on the
basis of the protester's highlighting its proposal's alleged merits to
the court) assign the protester a strength where the agency did not do
so, especially in an area where the awardee did not receive a strength
either.
|
December 13 |
In
Restoration Specialists, LLC, the ASBCA dismissed all but one of a slew of claims submitted by the contractor as barred by the six year limitations period because,
inter alia: (i) for the purposes of claim accrual analysis, there is no such thing in the
law as a single accrual date for all claims under the rubric of a
global claim; (ii) the contractor's claims that the Government priced individual
task orders in a way that violated the formula stated in the contract
accrued no later than when the Government first paid the contractor
utilizing pricing that the contractor considered incorrect for each order; (iii) a claim that the
Government failed to exercise options in bad faith accrued when the
contractor learned the Government would not exercise the first option year, and claims for the
remaining option years did not survive under the continuing claim
doctrine; and (iv) claims based on government-caused delays accrued when the
contractor became aware of the alleged government acts that resulted in
the delays. Subsequently, the Board
denied the contractor's request for reconsideration.
|
December 12 |
In Nova Group/Tutor-Saliba, the Court of Appeals for the Federal
Circuit affirmed the
prior CoFC decision that the contractor had failed to prove the existence of
either a Type 1 or a Type 2 differing site condition. Specifically the
court held that: (i) the CAFC reviews the CoFC's
application of the parol evidence rule de novo as a question of
law rather than as a rule of evidence; (ii) the evidence Government submitted
relating to a fully integrated agreement was not introduced to vary that
agreement, as would be prohibited by the parol evidence rule, but to
support the Government's contention that the agreement settled the issue;
and (iii) a reference to a design-build contract in a
footnote to the CoFC's decision was not the basis for that
court's
reasoning or its decision and, therefore, cannot be a basis to overturn it.
In
Shoreline Foundation, Inc., the ASBCA held that the contractor's contention that it experienced delays caused by another
contractor's bid protest, which was only submitted as an REA to the
Contracting Officer, cannot now be appealed to the Board in
connection with an appeal of the Contracting Officer's decision on the
contractor's subsequent CDA claim for weather related delays and
remission of liquidated damages.
In
Colony Constr., the ASBCA denied the
Government's motion to dismiss a pro se plaintiff's appeal or,
in the alternative,
for a more definite statement because the appellant's statement was a
"vintage" claim for a wrongful default termination:
[The contractor] claims that the Corps has wrongly terminated contract
#W912WJ-22P-0131 for ‘default’ and not ‘convenience.’ We pray that the Board will
change the designation accordingly. [The contractor] is asking for no monetary damages. |
December 10
| The SBA
has revised its white
paper explaining how it establishes,
reviews, and modifies small business
size standards, including
changes from the SBA’s 2019 Revised Size
Standards Methodology, which guided the SBA’s recently
completed second five-year review of
size standards as required by the Small
Business Jobs Act of 2010.
SBA welcomes comments and feedback
on the 2023 Revised Methodology,
which SBA intends to apply to the
forthcoming third five-year review of
size standards. Comments are due by February 9, 2024.
|
December 8 |
In Real Line Logistics Services Co., the CBCA denied a claim for the costs
of an attempted late delivery in response to a unilateral purchase order for construction
supplies to the U.S. embassy in Kabul, Afghanistan, that was closing and being
evacuated because (i) the pro se appellant did not specify a legal
theory of recovery and did not respond properly to the Government's motion
for summary judgment, and (ii) the purchase order was a unilateral
offer to contract that expired by its terms when the appellant did not
proffer delivery by the specified date.
In BES Design/Build, LLC,
the CBCA denied a motion for
reconsideration of its
earlier decision (see April 14 entry below) because there was no "newly discovered evidence" as
alleged by the contractor.
In Stellar J Corp.,
the CBCA denied cross motions for
summary judgment involving a construction contract because they both failed
to address two threshold issues of law concerning the meaning of the
contract and failed to resolve a material issue of fact that would
remain after those issues were resolved. |
December 6 |
In
Greystones Consulting Group, LLC, an unsuccessful post-award protest
employing various theories to attack the agency's
interpretation that the evaluation criterion requiring a
"single integrated platform" impliedly called for "a single
user experience" in a solicitation for data management
software, the Court of Federal Claims held that: (i) the agency did not utilize
an unstated evaluation criterion but
reasonably relied on a common industry definition of the evaluation term that other
offerors understood and took into account in preparing their
proposals; (ii) the plaintiff failed to provide substantial evidence supporting
its contention that solicitation contained ambiguous terminology;
and (iii) the agency did not evaluate proposals disparately--it rejected three other
offers for providing the same solution the agency objected to in
the plaintiff's proposal. |
December 5 |
The
GAO sustained a protest by SecuriFense Inc.
because: (i) the agency treated offerors
differently by downgrading the protester for answers during its oral
presentation that were similar to the awardee's; and (ii) the agency applied
an unstated
evaluation factor by assessing decreased confidence to the protester's
proposal for failing to address items that were not among the
evaluation criteria.
The CBCA is hiring a new judge. If you are
interested in applying for the position, here is the
website
concerning the opening. |
December 4 |
In
Eagle Group Sportswear, Inc.,
the GAO's Contract Appeals Board upheld a termination
for default of a purchase order by the Forest Service for
baseballs with special printing after the contractor failed
to timely deliver conforming items despite numerous chances
to do so provided by the Government.
In
Colonial
Press Int'l, Inc., the same Board upheld the
contractor's appeal involving the Government's recoupment of
payments to the contractor for an alleged breach of the
warranty in the delivered items because the Government
contributed to the breach by informing the contractor that
the products met the Government's specification, when, in
fact, the Government's own testing revealed they did not.
Thus, the Government induced the contractor to provide
products concerning which the Government later complained. |
November 29 |
In
Ben Holtz Consulting Inc. dba California Avocados Direct, which
involved cross motions for partial summary judgment, the
CBCA held that in a contract to provide boxes of produce
at a fixed price per box, even though there were other contract
requirements related to the required deliveries, prong one of
a convenience termination settlement recovery was limited to
the price for
delivered boxes plus recovery for any partially completed boxes at the time
of termination and did not include any of those other requirements, such
as the establishment of a distribution system.
The
Supreme Foodservice GmbH case involves a contract to deliver food to
bases in Afghanistan concerning which the contractor had
admitted (in federal District court) to major fraud. The
case has an extensive history at the ASBCA and the CAFC. In
this latest decision, the ASBCA held that: (i)
the contractor's fraud was not severable
from the remainder of its work on the contract (even if some of that work was not
directly tainted by the fraud) and amounted to a prior material breach
that relieved the Government of its obligation to pay any of the contractor's claims for
work performed on the contract during the original contract term; (ii) the
Government had not justified its withholding of payment on a separate
contract because, inter alia, the Government (a) over withheld on the current contract
and (b) has not established that fraud on the current contract tainted a different
contract; (iii) the contractor would not be permitted to amend its pleadings to allege
quantum meruit recovery because inter alia, to do so would decimate the
prior material breach doctrine; and (iv) the Government's prior material breach
defense did not waive or forfeit its claims that arose prior to the
time of the federal court plea (which was the time that the
Government had obtained its known right to assert the
defense). |
November 28 |
In
Michael Johnson Logging, an EAJA claim, the CBCA held that the agency's
decision to dispute the contractor's claim of breach of the implied duty of good faith and
fair dealing was justified, and, because the contractor recovered only 9.8% of its claimed
costs for a breach of contract claim, its EAJA recovery was limited to that percentage of
its claimed EAJA fees and expenses.
In
The Kmask Group LLC, the CBCA upheld a default termination because
the contractor failed to timely
provide PPE gloves and failed to provide adequate assurances of performance
when requested by the Government, and the COVID delays to PPE supplies
that the contractor had offered as an excuse began two years prior to
the start of the contract and, therefore, did not amount to an
unforeseen event.
In
Optum Public Sector Solutions, Inc., the CBCA held it lacked jurisdiction over
an appeal from a Contracting Officer's letter requesting
reimbursement for certain payments because the letter did not constitute
a final
decision (no demand for payment, no sum certain, no explanation of
appeal rights, and no identification as a final decision).
In A. Prentice Ray
and Assocs., LLC, an unsuccessful
post-award protest seeking a preliminary injunction, the Court of
Federal Claims held that: (i) the price realism analysis
could include (a) limited use of the IGCE and (b) comparisons of one year of each offeror's unburdened labor
costs; and (ii) the agency's determination that two offerors' unburdened labor costs
were reasonable despite being significantly lower than the average of those of other offerors had
a rational basis. |
November 24 |
The GAO sustained a protest by RELX
Inc. because the awardee's task order
quotation in an FSS competition (a) failed to meet several salient characteristics
of the brand name
or equal solicitation and (b) offered some open market items not included
in its FSS contract (as did the protester's quotation).
|
November 22 |
In
Flatland Realty LLC, the ASBCA held that the Government's
default termination breached a lease to provide concession services
(which did not contain a T for C clause) because the record did not support
the Government's assertion that lessee had failed to provide services for
two years, and the lessee was not required to provide a new Use and
Development Plan five years after the original five-year plan. The
Board also held that after the Government
revoked the lease, a building that the lessee failed to remove from the
property became
government property, so the lessee was not entitled to compensation
for the
building.
In
Granite Constr. Co., the ASBCA held that a 49 day
suspension period for part of the work due to extreme weather
conditions caused by Hurricane Harvey was "reasonable" under
the Suspension of
Work clause (FAR 52-242-14), especially where the contractor had admitted
as much during performance. The Board also held that compensating the contractor only for
30 days during that period also was reasonable because, as the
Contracting Officer had stated: "19 of those days were
anticipated adverse weather delay days identified in [a section] of the
contract, for which
[the contractor] accepted the risk."
In Gulf Extreme Eng'g & Constr., the ASBCA upheld the default termination of
a construction contract for failure to
diligently prosecute the work after the contractor's unsatisfactory
response to a cure notice and its subsequent failure to present evidence
at the Board of any
valid excuses for its delays:
The government has
amply shown that the record supports the termination decision. Thus, the burden shifts
to [the contractor], and it has not, during the project or here, shown that its many delays,
scheduling errors, poor management decisions, or work slowdowns and stoppage,
were beyond its control. In fact, [the contractor's] challenge to the termination is almost
entirely unsupported and consists only of repetitive and conclusory characterizations
of select correspondence between the parties, without citations to any substantive
record evidence.
|
November 21 |
In
Noble Supply & Logistics LLC, an unsuccessful preaward protest,
the Court of Federal Claims held that in a solicitation for
commercial items under FAR Part 12, the agency had a rational basis for
obtaining a waiver to depart from ordinary commercial practice and
require contractors to pass on any prompt payment discounts they
received to the Government.
In
Myriddian, LLC, an unsuccessful post-award protest, the court
held, inter alia, that: (i) the awardee's plan to
employ a (key
personnel) Medical Director part time, supplemented by an Associate
Medical Director working full time, was permitted by the solicitation
and, besides, the agency had considered the risks associated with this
approach; (ii) the solicitation's vague requirement that the undergraduate
degree of the Program Director should be relevant to the contract's purpose
(Medicare related services) was
sufficiently broad that an undergraduate major in psychology was
acceptable; and (iii) the agency adequately considered the differences in ratings
between the competing
proposals in other areas of staffing and technical merit.
NFS Case 2023-N022: Effective December 20, a final
rule amends the NASA acquisition regulation supplement (NFS) to update the policy concerning
the NASA Ombudsman Program.
DFARS Case
2012-D010: A final rule amends the DFARS to
partially implement section 874 of the
NDAA for
FY 2017 that addresses the
inapplicability of certain laws and
regulations to the acquisition of
commercial products, including
commercially available off-the-shelf
items, and commercial services.
DFARS Case
2018-D053: The proposed rule concerning export
authorizations associated with this case is being withdrawn.
DFARS Case
2018-D074: A proposed would amend the DFARS to
implement sections of the NDAA for FY 2018 and 2019 regarding
the applicability of certain solicitation
provisions and contract clauses to
contracts and subcontracts for
commercial products, commercial
services, and commercially available
off-the-shelf items. Comments are due by January 16, 2024.
DFARS
Case 2021-D022: A proposed rule would amend the DFARS to to
implement two sections of the NDAA for FY 2021, one section of the NDAA for FY 2022, one section of the NDAA for FY 2023, and one section of the
Consolidated Appropriations Act, 2023.
These statutes remove limitations and
restrictions on certain components that
are no longer required and add new
limitations on other components,
subject to exceptions. Comments are due by January 16, 2024. |
November 20 |
The GAO sustained one of the protest grounds asserted by Vertex Aerospace,
LLC, finding that the evaluation of the protester's
past performance was unreasonable because the agency simply tallied
the ratings it received on various contracts without considering the relevance of the contracts on
which they were received, i.e., the agency unreasonably equalized the
various ratings without regard to relevance.
|
November 17 |
GSAR Case
2020-G510: The GSA proposes to amend the GSAR to to standardize
and simplify the Multiple Award
Schedule clauses for
economic price adjustments. This rule
removes certain economic price
adjustment requirements within these
clauses to better align with commercial
standards and practices.
Comments are due by January 16, 2024.
Federal Acquisition Circular (FAC)
2024-01 has been published and includes the following item:
FAR 2023-019: A final rule amends the FAR to add North Macedonia as a new
designated country under the World
Trade Organization Government
Procurement Agreement.
|
November 16 |
In
CeleraPro, LLC, an unsuccessful challenge to the proposed award of sole-source task order to the holder of an existing single-award, IDIQ contract
contract as a modification to that contract, the Court of Federal
Claims held that: (i) the plaintiff has standing to challenge
the award to an 8(a) firm even though was not, itself, 8(a) because
an element of the challenge was whether
the solicitation was properly limited to 8(a) firms, and it could compete
for award if it were not so limited; but (ii) the contract mod was within
the scope of
the original contract because that contract adequately advised offerors of
the possibility of such a change, and the mod did not substantially change the type of
work, performance period, and costs as between the original contract and the modified contract, so CICA's
competition requirements were not implicated by
the modification.
In VSBC Appeal of Iron Shamrock, LLC, the SBA's OHA upheld a decision denying VOSB status to a
firm because
multiple provisions of its franchise agreement established that the franchisor, rather than
the veteran, had control of the firm.
|
November 15 |
In
Size Appeal of Portacool, LLC,
the SBA's OHA held that the Area Office correctly drew an adverse
inference from the challenged firm's failure to provide relevant
information requested by the office concerning possible affiliates and the
ownership of the company the challenged firm claimed to be 100% owned by.
In Size Appeal
of Daniels Bldg. Co., the OHA held that the Area Office had properly dismissed
(as
speculative) a protest alleging only that two firms "have not fulfilled their obligations as Mentor and Protégé and have no intention or ability to fulfill those requirements on the project at issue"
without supporting evidence. |
November 14 |
The CBCA issued two, similar decisions concerning applications for EAJA fees.
In
GC Works, Inc., the CBCA awarded only part of the hours claimed in
an EAJA application because, although
the agency's position in the original litigation was not substantially justified, the
contractor had originally claimed
more delay hours than it was entitled to and did not own up to its
contribution to the delays. Likewise, in SBC Archway Helena, LLC,
the CBCA reduced the appellant's EAJA claim because, although it was the prevailing
party in the underlying litigation, it had claimed substantially more than it was
ultimately found to be entitled to. |
November 10 |
In Navarre Corp.,
an unsuccessful post-award protest, the Court of Federal
Claims: (i) rejected the
protester's contention that the solicitation contained a definitive
responsibility criterion concerning financial responsibility; (ii)
found that the agency's
conclusion that the awardee was financially responsible had a rational
basis, and that bankruptcy materials not available to the agency at the time it
made that determination were not relevant to the protest but were a
matter of contract administration; and (iii) held that the protester did not provide evidence
for its assertion that agency had misevaluated quotes or treated
competitors disparately.
|
November 9 |
In
Amentum Services, Inc., f/k/a AECOM Management Services, Inc.,
which involved interpretation issues in a firm-fixed-price contract for
launch services, the ASBCA held that: (i) the contract's minimum yearly
ordering requirement in the final year should include task orders issued near the
end of the year, but not performed until the next year,
but the fact that a task order was de-scoped in that next year reduced
its value in the year it was awarded, meaning the Government breached
the contract by ordering approximately $50,000 less that the minimum
guaranteed amount; (ii) the contractor could not disavow new task order items
added by way of bilateral modifications made without any reservation
of rights; (iii) because individual line items did not have minimum
required values, the Government's decision to stop purchasing jet fuel
from contractor did not violate any contractual provision and did not
amount to a breach of the implied duty of good faith and fair dealing; (iv)
the contractor was not entitled to recover its continuing costs during shutdowns
caused by
hurricanes, and the clause relied on by the contractor only noted the Contracting
Officer "may" consider such claims, which invoked an abuse of
discretion standard that the contractor had not met; (v) there was no ambiguity in
the task item for gaseous nitrogen support, and, even if there were, it was
patent; and (vi) the contractor did not establish its claim for a bidding error
because its own evidence on its mistake was equivocal, and it did not prove
the Government was, or should have been, aware of
the error.
In
Korte Constr. Co., the ASBCA held that the Government was
entitled to a credit for a deductive change for work ultimately not
required of a subcontractor even though the contractor established the
subcontractor did not include that work in its bid because the
subcontractor assumed the work would not be required. The Board's
reasoning is that the subcontractor knew of an ambiguity in
the solicitation but did not raised the issue, essentially
betting its interpretation would be the correct one (which
it turned out to be). I'm not sure I'm on board with this
decision. If the subcontractor had bet wrong, I could
understand the Board denying the contractor's claim for
added work, but here, the punishment does not seem to fit
the crime since the bid turned out to be for the right
amount. I see a windfall for the Government in the Board's
decision.
In
Radmacher Bros. Excavating Co., Inc., the ASBCA denied the Government's motion for summary judgment on
a Type
2 Differing Site Conditions claim because, even though the contractor
had presented scant evidence in response to the Government's
motion, the record was not sufficient to
decide whether stationary trains on railroad tracks for extended
periods of time were an unknown or unexpected condition that should allow recovery. |
November 7 |
In
Alfajer, Ltd., the ASBCA granted the
Government's motion for summary judgment because the contractor: (i) failed
to respond to several sections of the Government's motion (including its defense to the contractor's breach of contract
claim, i.e., that a base closure and evacuation undertaken for
security reasons was a sovereign act); (ii) abandoned several of its claims
(e.g., a superior knowledge claim); and (iii) failed to provide evidence of
any allegedly disputed issues of fact (or provided "evidence" that did
not support its contentions) in the case of its claim of breach of the
implied duty of good faith and fair dealing.
In
MTS General Contracting, the ASBCA denied the Government's motion for summary judgment because of
material issues of fact as to which, and how many, invoices were in dispute. |
November 6 |
In
Research Analysis & Maintenance, Inc., the ASBCA analyzed whether
each of various challenged allegations in the Complaint were new claims or
whether they were based on the same operative facts previously presented
to the Contracting Officer (most were). The Board also held that parts of
the claim that Government contended
should have included sums certain were just descriptions of
various acts of the Government that the contractor considered to be the
source of the amount it was claiming, but
the contractor clearly was seeking only the costs it alleged it incurred
to comply with FAR 52.215-2, which it identified in a sum certain
amount.
In
AeroKool Aviation Corp., the ASBCA denied the Government's motion to dismiss
the appeal, holding that: (i) a breach proposal that
was originally submitted in the same document as a termination
settlement proposal (TSP) ripened into a claim when the contractor
certified it and requested a Contracting Officer's decision; (ii) the breach
claim was independent of the TSP proposal because it was based on
a different theory of relief and sought different damages; and
(iii) the Government's
dilatory processing of the TSP created an
impasse, converting the TSP into a CDA claim. The Board directed the
Government to issue a decision on the TSP.
This website's
Recent ASBCA Decisions
page was getting so long that the program I use to edit the
site was starting to run slowly on that page. So, I have
moved some of the decisions that used to be on that page to
the page for older decisions, which now covers
decisions from
2006-2016. |
November 2 |
In
BWhit Infrastructure Solutions, LLC, an unsuccessful protest against an agency's corrective action in response to a
prior GAO protest, the Court of Federal Claims held there was a rational basis for the agency's decision to cancel an award to plaintiff and amend the solicitation
to eliminate ambiguities and account for updated agency requirements
resulting from delays caused by the original GAO protest.
|
r!
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