GAO Weighs in on Facility Clearance Requirement for Unpopulated Joint Ventures
A recent GAO decision upholds a facility clearance in a U.S. Department of Homeland Security (“DHS”) solicitation even if burdensome to unpopulated joint ventures. The protester in the case made a common mistake among unpopulated joint ventures: assuming the clearances of the venturers may be attributed to the joint venture, without going through the process of clearing the joint venture. GAO found the cleared status of the venturers was irrelevant under applicable classified information policies. In Management and Technical Services Alliance Joint Venture , B-416239 (June 25, . . . Read More
New and Proposed Certified Cost or Pricing Data Requirements Will Shift Burdens upon DoD Contractors
Compliance with the requirements of the Truthful Cost or Pricing Data statute (“TCPD”), which is still commonly known as the Truth in Negotiations Act, has been a significant burden to many small business contractors. Under TCPD, federal contractors are required to submit “certified cost or pricing data” to the contracting officer prior to the award of negotiated contracts where (i) the price exceeds a specific threshold and (ii) an exception to the requirement is not applicable. If there is a . . . Read More
GAO Denies Protest Based on Cybersecurity Compliance
Last month, I blogged about DoD’s draft guidance on how it will evaluate cybersecurity compliance in the award of contracts. The blog is available here . Based on this draft guidance indicating DoD may use cybersecurity compliance as pass/fail or best value criteria in evaluations, I concluded that bid protests would not be too far behind once DoD finalizes and implements the guidance. The public comment period on DoD’s draft guidance recently closed, so we may still be a little way . . . Read More
False Claims Act Cases Involving Set-Aside Contracts Held to More Stringent Requirements Following Escobar
Two years have passed since the U.S. Supreme Court issued Universal Health Services, Inc. v. United States ex rel. Escobar, a key False Claims Act (“FCA”) case that resolved a circuit court split regarding the scope and validity of the implied false certification theory and established that the materiality standard for FCA cases is “demanding.” Since that time, lower courts have been implementing those standards to varying effects. The trend has been favorable for companies facing FCA cases that allege . . . Read More
Don’t Get Disqualified Because of Organizational Conflicts of Interest
A recent decision from the Government Accountability Office (“GAO”) reiterates two important principles concerning organizational conflicts of interest (“OCIs”). First, proactive measures may allow a contractor to effectively mitigate and avoid an OCI. Second, appearances, innuendo, and suspicion are insufficient to establish that a contractor has an OCI. Hard facts are required. In Archimedes Global, Inc. , B-415886.2 (June 1, 2018), the protester challenged the agency’s decision to exclude it from a competition because of an alleged OCI. By way of background, the . . . Read More
Pursuing a CTA Team Solution? Make Sure You’re on an Eligible Team!
Contractor Team Arrangements (CTA) formed to pursue GSA Schedule task order opportunities are unique animals in the government contracting universe. A mashup of elements taken from joint ventures and more traditional prime-sub relationships, CTAs allow two or more Schedule contract holders to combine their respective Schedule contract offerings in response to an ordering agency’s solicitation. GSA guidance is clear that for Schedule obligations—such as reporting sales and paying the Industrial Funding Fee (IFF)—each CTA Team Member is considered to be . . . Read More
SAM Registration Update: Notarized Letter Requirement Change and New Deadline Looming
As most government contractors may know by now, in order to proactively fight against alleged fraudulent activity in the System for Award Management (SAM), the General Services Administration (GSA) issued a rule that required all entities to “provide an original, signed notarized letter stating that you are the authorized Entity Administrator before your registration will be activated.” On June 11, 2018, GSA issued an update to the notarized letter requirement in two parts. The first, which went into effect on . . . Read More
SBA Eliminates “Direct” Ownership Rules for HUBZone Program
On March 26, 2018, the U.S. Small Business Administration (SBA) issued a direct final rule that changed the wording of 13 C.F.R. § 126.200(b)(1) to allow indirect ownership by U.S. citizens of companies in the HUBZone program. The stated purpose of the rule change is to align more accurately the rule with the underlying statutory authority. Prior to this change the HUBZone rules required that a HUBZone company be “unconditionally and directly owned” by U.S. citizens. The rule took effect . . . Read More
GAO Overturns OTA Award to REAN Cloud
On May 31, 2018, GAO sustained a protest filed by Oracle America, Inc. (“Oracle”) challenging the Army’s entry into a follow-on production other transaction agreement (“OTA”) with REAN Cloud LLC (“REAN”). Oracle alleged that the Army did not properly exercise its authority in entering the follow-on production OTA with REAN. GAO agreed. The OTA was for the migration of legacy software applications to a commercial cloud service provider. REAN is an Amazon Web Services partner. The initial award was $950 . . . Read More
OHA Reaffirms the Relevancy of the Date of Self-Certification
In the Matter of ASIRTek Federal Services, LLC, SBA No. VET-269 (2018), SBA found that the apparent awardee of a contract set aside for service-disabled veteran-owned small businesses (“SDVOSB”) was ineligible as an offeror because its joint venture agreement (“JVA”) failed to conform to the regulatory requirements. On appeal, SBA’s Office of Hearings and Appeals (“OHA”) upheld the finding of ineligibility, noting that the appellant’s JVA was defunct because it was dated more than a year before the solicitation was . . . Read More