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Government Contracts Monitor

Contracting Rules and Regulations

Agency Waiver of Solicitation Requirement - Fatal or Non-Prejudicial?

A recent protest demonstrates why it is not sufficient for a disappointed offeror to challenge an agency’s award as improper solely because the agency relaxed or waived a material solicitation requirement in evaluating the awardee’s proposal and thus the awardee’s proposal was deficient.  Such a challenge, in order to succeed, must include another key element: demonstrated prejudice to the …

Following SBA's Joint Venture Agreement Template Not a Free Pass, and Don't Ignore the Footnote Comments

The Small Business Administration (SBA)’s Office of Hearings & Appeals (OHA) recently reiterated that SBA Joint Venture Agreements (JVAs), including those entered into under SBA’s new All-Small Mentor-Protégé Program (ASMPP), must include adequate specific detail as to the respective responsibilities of the parties with regard to, inter alia, performance of the proposed contract, and how the…

A Preference for U.S. Goods and Services: Buy American Receives A Booster Shot

On January 31, 2019 President Trump signed yet another Executive Order addressing Buy American issues: Buy American, Hire American [here]. This Order requires that federal agencies purchase U.S. goods and services in any and all infrastructure projects including, interestingly, cybersecurity projects. Among other things, this recent Order underscores the Trump Administration’s policy of enforcing…

Rare DOL Nondisplacement Decision Holds that Incumbent's Certified Employee List Is Not Determinative, and Awardee Must Consider Agency's "Credible Evidence" as to Incumbent Employee's Qualifications and First Refusal Offer Entitlement

Every awardee under qualifying federal government service contracts faces difficult issues and choices under Executive Order 13495, “Nondisplacement of Qualified Workers under Service Contracts,” and the implementing Department of Labor (DOL) Regulations at 29 C.F.R. Part 9, which require awardees to offer incumbent employees “a right of first refusal for employment under the contract in…

Changing Key Personnel After Proposal Submission? Not So Fast....

As the GAO recently determined, and the Court of Federal Claims affirmed, an offeror who finds itself in a position of having to modify key personnel specified in its proposal, after the deadline for proposal submission, may end up with an unacceptable proposal.  If an agency notified offerors that it might award without discussions, an offeror will not be able to "re-open" the proposal process to…

Prompt Payment Act & Contract Disputes Act Interest Rate Increased to 3.625%, Effective 1/1/19

The Treasury Department has announced that the Prompt Payment Act (“PPA”) interest rate increased to 3.625% per annum for the first half of 2019 – i.e., January 1, 2019 through June 30, 2019.  This interest rate is used to calculate the interest penalty payable by the Government when it fails to timely pay contractors for goods and services, as well as interest due under the Contract Disputes Act…

New Statute Extends Small Business Size Standard Reference Period to Five (from Three) Years, Enabling More Companies to Qualify as Small

In December 2018 – just before Christmas – the Senate approved, and the President signed into law, the so-called “Small Business Runway Extension Act of 2018,” Pub. L. No. 115-324 (the “Act” or “statute”).  This statute extends the three-year reference period for calculating a revenue-based small business’s size status to five years.  This Act was intended – as implied by its name – to extend the…

So Long, Farewell, Goodbye, to Low Price Technically Acceptable

The Department of Defense (“DoD”) recently proposed a new rule (click here) that would restrict the use of the lowest price technically acceptable (“LPTA”) source selection method.  The rule will apply to FAR Part 15 negotiated procurements, Federal Supply Schedule orders, commercial item acquisitions, simplified acquisitions, and orders against multiple award indefinite delivery contracts. The…

New Year's Resolutions, 2019 - Reassess Your Size Status, Update Your SAM and DSBS Listings, Check Your Past Performance Ratings, and Update Your Employment Policies, Handbooks and Postings

Happy New Year!  The start of a new year is the time for New Year’s Resolutions.  Here are several we strongly urge you to follow-through on early in 2019.

 

     1.  Reassess Your (and Any Subcontractors’) Small Business Size Status:  Most companies operate on a calendar year for tax reporting purposes.  For such companies the start of a new tax year, and the end of the prior year, means a change and…

Here We Go Again - Another Possible Federal Government Shut-Down - Actions to Take Now

As recently as yesterday morning, I had shelved this article for at least a couple of more months.  However, developments yesterday significantly increased the likelihood of a partial Federal Government shut-down at midnight tonight, causing me to resurrect and publish this today.  As you no doubt know, President Trump has been threatening a possible shut-down since last year if he does not get his…

FAR Change Clarifies that Offerors (Including Joint Ventures) Must Register in SAM Before Submitting Offers

The Federal Acquisition Regulation (FAR) has been amended to make clear that offerors, including joint ventures, must be registered and active in the System for Award Management (SAM) prior to submitting bids or offers responding to Federal Government solicitations.  Such registration includes completing the standard annual Representations and Certifications (Reps & Certs) required by most…

Short Take - Minimum Wage Increases to $10.60, Effective January 1, 2019

The Department of Labor (DOL) recently published a Notice [83 Fed. Reg. 44906 (9/4/18)] announcing that, effective January 1, 2019, the minimum hourly wage required to be paid to workers performing work on or in connection with covered federal contracts, per Executive Order 13658, will increase from the present $10.35 to $10.60. The minimum hourly tipped wage will increase from $7.25 to $7.40.

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