Best Practices for Effective Prosecution of and ... · • Pre-Award Bid Protests ... separate...

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@VenableLLP@DHG_GovConBest Practices for Effective

Prosecution of and Intervention in Bid ProtestsPaul Debolt, Partner, VenableBill Walter, Partner, DHG

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@VenableLLP@DHG_GovConSpeaker Information @VenableLLP@DHG_GovCon

PaulDebolt,PartnerVenableLLP(202)344.8384padebolt@Venable.com

BillWalter,PartnerDixonHughesGoodmanLLP(703)970.0509bill.walter@dhgllp.com

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@VenableLLP@DHG_GovConAgenda

• Pre-AwardBidProtests• Post-AwardBidProtests• AnEffectiveDebriefing• MakeanInformedDecision• Intervening• LessonsLearned

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@VenableLLP@DHG_GovCon

Pre-Award Protests

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@VenableLLP@DHG_GovConPre-Award Bid Protests:

Protesting the Solicitation

• Undulyrestrictivetermsinthesolicitation• Inclusionofimproperclauseorprovision• Failuretoincludeamandatoryclauseorprovision• Improperbundlingofrequirements• Ambiguoussolicitationprovisions• Unreasonableevaluationmethod• UseofFSScontractfornon-FSSpurchase• Changedrequirements• Improperdisclosureofproprietaryinformation

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@VenableLLP@DHG_GovConPre-Award Bid Protests:

Conversation for Corporate Team

• Isthereanythinginthesolicitationthatappearsskewedtowardsaparticularofferor,e.g.,theincumbent?

• Isthereanythinginthesolicitationthatrendersyourcompanyineligibleforaward?

• Doesthesolicitationgiveyouadisadvantagethatitdoesnotgiveanyoneelse?

• Forambiguitiesinsolicitation,istheQ&Aperiodstillopen?• Probabilityofwinifperceiveddefectsremaininthe

solicitationvs.probabilityofwinwithcorrectedsolicitation• Sizeandstrategicimportanceofprocurement• IDIQvs.stand-alonecontract• Impactoncustomerrelationship

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@VenableLLP@DHG_GovConPre-Award Bid Protests: Timeliness

• Excludedfromthecompetition– Adebriefingmustberequestedin writing totheCOwithinthree

daysafterreceivingnoticeofexclusion– Maybelimited– Canrequesttodelaythedebriefinguntilafteraward– TheCOmayrefusetoprovideapre-awarddebriefing,however,the

COmustprovideapost-awarddebriefingwithinfivedays• Post-awarddebriefingsdonotextendthetimetoprotest- the

clockstartstickingwhenacompanylearnsofitsexclusion.

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@VenableLLP@DHG_GovCon

Post-Award Bid Protests

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@VenableLLP@DHG_GovConPost-Award Bid Protests Come Into Play When:

• Yourcompanyischallengingthegovernment’sawardofacontracttoacompetitor(i.e.,yourcompanyistheprotester),or

• Thegovernmenthasawardedyourcompanyacontractthatisbeingchallengedbyacompetitor(i.e.,yourcompanyistheintervenor).

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@VenableLLP@DHG_GovConLitigating as the Protester: General Overview

• Thegovernmentannouncesthecontractaward• Yourcompanyrequestsadebriefinginwriting• Yourcompanyreceivesthedebriefing• Yourcompanydecideswhether tofileaprotest• Yourcompanydecideswhere tofileaprotest• YourcompanydecideswhethertorequestaCICAstay• Protestprocedures• Correctiveaction• Protestdecision• Appeal

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@VenableLLP@DHG_GovConRequesting a Debriefing (Negotiated Procurements),

Timeliness, and Stay of Performance

• Adebriefingmustberequestedin writing andmustbereceivedbytheagencywithinthree calendardaysafteryourcompanyreceivesnoticeofcontractaward.

• Thedebriefingissupposedtooccurwithinfive calendardaysaftertheagencyreceivesyourcompany’srequest.

• Strategies:– RequesttoschedulethedebriefingforaThursdayorFridaytomaximize

thetimingforastay(trytoavoiddebriefingsMonday– Wednesday);– Trytoacceptthefirstdebriefingdateofferedbytheagency(thetiming

rulesforastayaretriggeredbythisdate,notthedateyourcompanyisactuallydebriefed);and

– BEWAREOFRECEIVINGAWRITTENPACKAGEBEFORETHELIVEDEBRIEFING.

• Follow-upsessionsgenerallydonotconstitutea“continuingdebriefing.”

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@VenableLLP@DHG_GovCon

Timeliness

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@VenableLLP@DHG_GovConTimeliness:

Post-Award Bid Protests at the Agency

OUTCOME WHEN PROTEST MUST BE FILED

Post-award protest Protests must be filed no later than 10 days after the basis of the protest is known or should have been known, whichever is earlier.

Post-award stay of performance (FAR) Upon receipt of a protest within 10 days after contract award or five days after a debriefing date offered to the protester in response to a timely debriefing request, whichever is later, the contracting officer shall immediately suspend performance pending resolution of the protest, unless someone above the contracting officer or another agency official justifies the contract award in writing for urgent and compelling reasons or in the government’s best interest.Note: Agencies will rarely override the automatic stay, considering the short time frame for issuing protest decisions. Stay overrides are more likely in GAO protests, which take longer.

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@VenableLLP@DHG_GovConTimeliness: Post-Award Bid Protests at the GAO

OUTCOME WHEN PROTEST MUST BE FILED

Post-award protest Protests of other than solicitation improprieties must be filed no later than 10 days after the basis of the protest is known or should have been known, whichever is earlier, or within 10 days after a “required” debriefing has been held.

“Appeal” of agency-level protest

If the agency-level protest was timely filed, any subsequent protest to the GAO must be filed within 10 days of actual or constructive knowledge of initial “adverse agency action.” Pursuing an agency-level protest does not extend the time for obtaining a stay at GAO.

Post-award stay of performance

Upon receiving notice of a protest from GAO within 10 days after the date of contract award or five days after a “required” debriefing date, whichever is later, contract performance must be suspended unless the head of the contracting agency authorizes continued performance based on a finding that contracting performance is in the USG’s best interest or urgent and compelling circumstances that significantly affect the interests of the government and will not permit waiting for GAO’s decision.

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@VenableLLP@DHG_GovConStay of Performance: Key Information

• TheclockistriggeredbytheUSG’sreceiptofnotice oftheprotestfromGAO (withinonedayofGAO’sownreceipt).Inotherwords,protestersoftenhavelesstimetofilethantheythink.

• Ifaprotestisbeingfiledshortlybeforethedeadlinefortriggeringanautomaticstayofawardorperformance,theprotestershouldbringthistoGAO’sattentionatthetimeoffiling;GAOcanattempttoprovideexpeditednoticeoftheprotesttotheagency.

• WhiletelephonenoticefromGAOtotheagencymay triggerastatutorystay,GAOdoesnotreviewagencydecisionsinthisregard,andwon’tconsideraprotestchallenginganagency’sdecisionnottodelayaprocurement.

• Thenoticemustbereceivedwithin10daysofcontractawardorfivedaysafterthedateofferedforarequireddebriefing,whicheverislater.

• Assumingthedebriefingdateislater…

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@VenableLLP@DHG_GovConObtaining a Stay of

Performance in a GAO Protest

ThursdayDebriefingOffered– MustFileonDay4toEnsureCICAStay

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@VenableLLP@DHG_GovConObtaining a Stay of

Performance in a GAO Protest

FridayDebriefingOffered– MustFileonDay4toEnsureCICAStay

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@VenableLLP@DHG_GovConObtaining a Stay of

Performance in a GAO Protest

MondayDebriefingOffered– MustFileonDay3toEnsureCICAStay

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@VenableLLP@DHG_GovConObtaining a Stay of

Performance in a GAO Protest

TuesdayDebriefingOffered– MustFileonDay2toEnsureCICAStay

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@VenableLLP@DHG_GovConObtaining a Stay of

Performance in a GAO Protest

WednesdayDebriefingOffered– MustFileonDay1toEnsureCICAStay

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@VenableLLP@DHG_GovConTimeliness: Post-Award Bid

Protests at the Court of Federal Claims

TYPE OF PROTEST WHEN PROTEST MUST BE FILED

Post-award protest Six-year statute of limitations includes post-award protest matters. No strict filing deadlines; however, COFC requires protester’s counsel to provide at least 24-hour advance notice of filing a protest to the DOJ's commercial litigation branch, the COFC clerk, the procuring agency’s CO (by fax), and the apparently successful offeror(s) (if any). Further, delay before the COFC is dangerous even if certain strict GAO and agency-level protest deadlines do not apply. For example, the COFC has found that delay in filing a protest can be prejudicial to a protester's case. See Wit Assocs., Inc., 62 Fed. Cl. at 662 n.5.

Protest of the overrideto a stay

Only the COFC has jurisdiction to hear challenges to the agency’s decision to override the automatic stay; the GAO will not review an agency’s decision to override the stay. However, a protester may file a separate action at the COFC to reinstate a stay while the GAO protest is pending.

Post-award stay of performance = temporary restraining order

To secure a stay of performance the protester must seek a temporary restraining order (TRO) and prove (1) likelihood of success on the merits; (2) irreparable harm to the protester if the TRO is not granted; (3) lesser harm to the USG and awardee if the TRO is granted; and (4) the TRO is in the public interest.

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@VenableLLP@DHG_GovCon

An Effective Debriefing

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@VenableLLP@DHG_GovConThe Debriefing: What Information Should Be

Released in Negotiated Procurements?

• FAR15.506(d)requiresthatataminimum,adebriefingshouldinclude:– Theagency’sevaluationofthesignificantweaknessesanddeficienciesin

theofferor’sproposal;– Theoverallevaluatedcostorprice(includingunitprices)andthetechnical

rating(ifapplicable)oftheawardeeandthedebriefedofferor;– Pastperformanceinformationonthedebriefedofferor;– Theoverallrankingofallofferors,ifsuchrankingwasdevelopedbythe

agency;– Asummaryoftheawardrationale;and– Responsestotheofferor’srelevantquestionswithrespecttowhether

theagencyfollowedthesourceselectionproceduresinthesolicitation,regulationsandotherapplicableauthorities.

– Foracquisitionsofcommercialitems,theagencyshalldisclosethemakeandmodeloftheitemtobedeliveredbythesuccessfulofferor.

• Thefocuswillbeontheofferor’sproposal,notonotherofferorproposals!

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@VenableLLP@DHG_GovConThe Debriefing: FAR Part 8

q Not required for all solicitationsq Debriefings require only “a brief explanation of the basis for the award decision.”

• A debriefing is required where:– The solicitation exceeds the

simplified acquisition threshold and contains a statement of work, and

– The agency awards on factors other than price alone.

• Required for competitive BPAs when the award was based on factors other than price alone.

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@VenableLLP@DHG_GovConDebriefing Strategies

• In-PersonRequest– Enforceopportunityforaninteractiveprocess

• PreparationofQuestions– Basicquestionsshouldbepreparedaheadofawarddecision– Tailoryourquestionstorelevantissues– Considersendingwithdebriefingrequest

• DocumentRequests– Redactedsourceselectionplananddecisiondocument– Governmentindependentcostorstaffingestimates

• ClosingtheDebriefing– Openpromisesofdocumentsorotheranswers– Requestthatdebriefingremainopenuntilopenissuesareclosed

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@VenableLLP@DHG_GovConThe Strategic Debriefing

• Askin-depthquestions• Askgeneralquestionsfirst,andthenmorespecificquestions• Setthetone:“friendlycost-examination”style• Watchforvisualcuessuchasfacialexpressionsandbody

language– butdon’treadtoomuchintoit,asitmaybearedherring

• Assignsomeonetotakedetailed notes,includingdocumentingvisualcues

• Shouldanattorneyparticipate?

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@VenableLLP@DHG_GovConThe Effective Debriefing – Top Ten Questions

1. Whatratingswereassignedforeachfactorandsubfactoroftheawardee’sproposalandwhy?

2. Whatratingswereassignedforeachfactorandsubfactorofyourcompany’sproposalandwhy?

3. What,ifany,significantadvantages/disadvantagesdidtheagencyperceivewereprovidedbytheawardee’sproposal?

4. What,ifanysignificantadvantages/disadvantagesdidtheagencyperceivewereprovidedbyyourcompany’sproposal?

5. Whatratingswereassignedtoyourproposalandtheawardee’sproposalforpastperformanceandwhy?

6. Whatadjustments,ifany,weremadetotheawardee’sproposedprice/cost?7. Whatadjustments,ifany,weremadetoyourproposedprice/cost?8. Wasourproposalprice/costthelowest(orsecondlowest)?9. Whatwastherationaleforthesourceselection,includingtherationaleforanycost-

technicaltrade-off?10. Whatspecificallywerethebestvaluediscriminatorsthatfavoredtheawardee’s

proposaloveryourproposal,anddisfavoredyourproposal?

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@VenableLLP@DHG_GovConEffective Post-Debriefing Strategy

• Documentyourimpressionswhiletheyarefresh(notjustthenote-taker)• Identifyaspectsofyourcompany’sproposalthattheagencyfailedto

understandorconsider• Identifyanyirregularitiesinthewaytheagencyperformedtheevaluation

(i.e.,whethertheevaluationadheredtothesolicitation’scriteriainSectionM)

• Identifyanyevidenceyourcompanywastreateddifferentlyfromtheawardee(e.g.,theagencyengagedindiscussionswiththeawardeebutdidnotdothesamewithyourcompany,ortheagencyrequiredyourcompanytosubmitdocumentationthattheawardeewasnotrequiredtosubmit)

• Identifywhethertheawardeetookexceptiontoanysolicitationrequirements

• Werethereanyorganizationalconflictsofinterestthatagencyfailedtoanticipateorprotectagainst?

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@VenableLLP@DHG_GovConPost-Award Debriefing –

Questions for Corporate Team

• Didtheagencytalktoyourcompetitors?• Didtheagencymisleadyouaboutwhatwasbeingsought?• IsthereanOCIissueinthesolicitation,e.g.,isthereIV&V

workorsaleofgoodsorservicesthatofferorshavepreviouslyevaluated?

• Ifbest-valueaward,istradeoffanalysisadequatelydocumented?

• Butfortheagency’sflawedprocurement,wouldyouhavehadasubstantialchanceataward?

• Whoistheincumbent?Ifyouaretheincumbent,whateffectdoesprotesthaveonexpiringcontract?Ifawardeeistheincumbent,whateffectdoesprotesthaveonexpiringcontract?

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@VenableLLP@DHG_GovCon

Make an Informed Decision

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@VenableLLP@DHG_GovConDeciding Whether to File a Protest:

Standing and Technical Merit Considerations

• TobringabidprotestattheGAO,theprotestermustbean“interestedparty,”i.e.,any“actualorprospectivebidderorofferorwhosedirecteconomicinterestwouldbeaffectedbytheawardofacontractorbythefailuretoawardacontract.”4C.F.R.§21.0(a)(1).

• TobringabidprotestattheCOFC,theprotestermustbean“interestedparty,”i.e.,showthattherewasa“substantialchance”theprotesterwouldhavereceivedthecontractawardbutfortheallegederrorintheprocurementprocess.

• Ruleofthumb:Mustbeabletoargueprotesteris“nextinline”foraward.

• TechnicalMeritConsiderations– Aretherelegitimatepotentialgroundstoprotest?e.g.,wasthereanimproprietyinthe

agency’sevaluation?– Objectivevs.subjectivejudgments;violationsoflawvs.agencydiscretion– Canthecompanyshowprejudice?Wasyourcompanytreatedfairlyandequally?– Werethereanyorganizationalconflictsofinterest?

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@VenableLLP@DHG_GovConDeciding Whether to File a Protest:

Business Considerations

• StrategicBusinessConsiderations– Whatareyoutryingtoaccomplish?– Wastheprograma“mustwin”inakeystrategicareaforthecompany?– Willyourcompanybyshutoutoftherelevantlineofbusinessbecauseoftheaward?– Arethereothernear-termopportunitiestowinworkinthisarea?– Isthecompanytheincumbentcontractor?– Whatisthecompanywillingtoinvestinaprotest?– Willthecompanybeabletowinare-evaluation?– Dothegroundsofprotestcauseconcernforfutureprocurements?

• CustomerRelationshipConsiderations– Whatisthelikelyimpactoftheprotestonyourcompany‘srelationshipwiththecustomer?

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@VenableLLP@DHG_GovConKey Forum Selection Considerations

• Stayofcontractperformance• Scopeofadministrativerecord• Hearings• Natureandobjectiveofprotest• Timefordecision• DOJinvolvement• Standardofreview• Costoflitigation• Differentlegaloutcomes

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@VenableLLP@DHG_GovConSummary Comparison –

Agency vs. GAO vs. COFC

• Jurisdiction• AgencyDecisionvs.GAORecommendationvs.COFCOrder• AutomaticStayvs.Injunction(TRO)• TimelinessRequirements• 35/100/???DayResolution• ProtectiveOrder• SummaryDismissals• StandardofReview• Discovery• ADR

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@VenableLLP@DHG_GovConPost-Award Bid Protests

• Lackofmeaningfuldiscussions• Misleadingdiscussions• Unequaldiscussions• Disparatetreatment• OCI• Failuretofollowthesolicitation’sevaluationcriteria• Failuretoconsiderrelevantinformation• Flawedtechnicalevaluation• Flawedpastperformanceevaluation• Flawedcostevaluation• Flawedpriceanalysis

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@VenableLLP@DHG_GovConGAO’s Annual Report for FY 2015

• Thefivemostcommonbasesforsustainingprotestswereasfollows:– Unreasonablecostorpriceevaluation– Unreasonablepastperformanceevaluation– Failuretofollowevaluationcriteria– Inadequatedocumentationoftherecord– Unreasonabletechnicalevaluation

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@VenableLLP@DHG_GovConPrice Realism at GAO

• Realismandreasonablenessaredistinctconcepts.

• TheFARdoesnotusetheterm“pricerealism.”Instead,FAR§15.404-1(d)(3)allowstheapplicationofcostrealismprinciplestocompetitivefixed-priceproposalsor,inexceptionalcases,onothercompetitivefixed-price-typecontractsforthepurposeofassessingperformanceriskandresponsibility.

• Whenevaluatingforpricerealism,theUSGcannotadjusttheofferedpricesasaresultoftheanalysis.

• GAOdecisionshaveaddressedfourgeneralprinciplesregardingpricerealism.

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@VenableLLP@DHG_GovConPrice Realism General Principles:

• Analysisgenerallynotrequired• Ifnotinsolicitation,analysisprohibited• Ifsolicitationprovides,analysisrequired• Compensationplansrequireanalysis

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@VenableLLP@DHG_GovCon

Intervening

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@VenableLLP@DHG_GovConDeciding Whether to Intervene

• Don’twaittobeasked;agenciesmayrefrainfromrequestinginterventionsoastoavoidconvertingbidprotestcostsintoallowablecostschargeabletothegovernment.

• Awardee’sinterestsmaynotalignperfectlywithagency’s(e.g.,agencymaybeinclinedtotakecorrectiveaction).Astheintervenor,theawardeecanconvincetheagencytodefendtheaward.

• Twotypesofintervention:– “Light,”i.e.,monitor,assistagency,reportbackriskanalysis;or– “Active,”i.e., submitbriefstoGAO,helpagencywriteagency

report,etc.

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@VenableLLP@DHG_GovConIntervention: Conversation with Operations

• Novisibilityintoprotester’sunredactedclaimswithoutintervention

• IntervenorcanhelpdefendawardbyassistingagencyinitseffortsandhelpingtoconvinceGAOtodenyprotest

• Interventionmayrequiresupportofoperationstoexplaintoagencycounselhighlytechnicalissuesinprotester’sclaims

• Awardeewantstoavoidnotonlysustainedprotestbutalsocorrectiveaction

• InFY2015,GAOsustained12%ofbidprotests(slightlydownfromFY2014),andagencytookcorrectiveactionin33%(slightlyupfromFY2014).

• Interventionisawaytoincreasecontactwithagency,allowingawardeetodissuadeagencyfromtakingcorrectiveaction

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@VenableLLP@DHG_GovConTop 10 Considerations as Potential Intervenor

1. Discouragecorrectiveaction2. Helpshapecorrectiveaction3. Limittherecord4. Supplementallegalsupporttoagency5. Advanceargumentsagencymaybeunwillingtomake6. Providedifferentperspective7. Protectproprietaryinformation8. Factualsupport/technicalunderstanding(e.g.,declarations)9. Showofsupport10.Monitordevelopments

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@VenableLLP@DHG_GovConParticipating in the Protest Proceedings

• Engagingindiscoveryandassistingintheagency’soppositiontotheprotester’sdiscovery(suchasdocumentrequestsandrequeststocompelproductionofdocuments)

• Reviewingtheagencyreportoradministrativerecord• Participatinginhearings• Seekingtheadmissionofexpertsunderaprotectiveorder• Preparingcomments,motionsand/orotherbriefs• Handlingsupplementalgroundsofprotest/amendmentsto

theComplaint• Controllingand/oravoidingsettlement/correctiveaction

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@VenableLLP@DHG_GovCon

Lessons Learned

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@VenableLLP@DHG_GovConOverview of Lessons Learned

• Maximizepre-proposalmarketing• Reviewsolicitation• Considerpre-awardprotests• Considerfiscalenvironment• GoontheoffensivewithOCIs• Pastperformancereferences• Proposaldetails• Responsestodiscussionquestions

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@VenableLLP@DHG_GovConAdditional Things to Remember

• Neatnesscounts• Empiricaldatacollectedfromgovernment-observedtesting

willreceivethegreatestconsideration• Writetheproposaltothesolicitation’srequirements• Donotassumethatthegovernmentreviewerswillseeallof

yourproposal• Explainwhyyoubelievethejobcanbeperformedwithfewer

hours,personnel,oratlowercosts

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@VenableLLP@DHG_GovCon

Protests – Coming Attractions

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@VenableLLP@DHG_GovConWhat to expect moving forward . . .

• GAOforthefirsttimesuspendedacompany’srighttoprotest.GAOdeterminedthattoomanyofLatvianConnection’s150proteststodatethisfiscalyearwere“frivolous”andthattheyhadmany“frivolous”protestsinpreviousyearsaswell.

• Second,yourrighttoprotestmayexpire.Theauthoritytofileprotestsagainsttaskanddelivery(T&D)ordersawardedbycivilianagenciesissettoexpireon30Sep2016.

• Third,Congressmayeliminatetherighttoprotest.Thereisproposedlanguageinthefiscalyear(FY)17NationalDefenseAuthorizationAct(NDAA)toeliminatetherighttoprotesttaskanddeliveryordersintheDepartmentofDefense(DoD)iftheSecretaryofDefense(SECDEF)createsanombudsman.

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@VenableLLP@DHG_GovCon

Questions . . .

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@VenableLLP@DHG_GovCon

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