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Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
GovCon Legal Update 2014
Government Procurement ConferenceAugust 6, 2014
Steven J. KoprincePetefish, Immel, Heeb & Hird LLP
Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
Overview
• Bids and Proposals• Teaming & Joint Venturing• SDVOSB Programs• HUBZone Programs• Small Business Eligibility• Interesting Cases: Strange But True• What’s On The Horizon
Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
Bids and Proposals
JV Derichebourg-BMAR & Associates, LLC, B-408777 (Nov. 20, 2013): • Proposals due July 8 at 3:00 pm• Offeror submits proposal by email but forgets to include the price proposal
and other attachments• Two days later, offeror resends missing attachments• Proposal excluded as untimely; GAO upholds exclusion
Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
Bids and Proposals
AeroSage LLC, B-409627 (July 2, 2014)
• 45-minute “bid confirmation deadline” was unreasonable & contrary to FedBid terms
OASIS Systems, LLC, B-407273.54 et al. (June
19, 2014):
• Subcontracting plan discrepancy partly to blame for lost spot on EAGLE II IDIQ contract
Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
Teaming & JVs
Sealift, Inc., B-409001
(Jan. 6, 2014):
2013 NDAA allows small primes to meet performance requirements by subbing to other small businesses
Example:
Company A, a small business, bids on a small
business set-aside contract for services.
Company A self-performs 30%, subs 30% to
Company B, another small business, and 40% to Company C, a large
business
Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
Teaming & JVs
BGI-Fiore JV, LLC, B-409520 (May
20, 2014)
8(a) JVs need not be approved by SBA at proposal submission
SOF Associates-JV, SBA No. VET-
234 (2013):
Supermajority provision in JV
agreement rendered JV ineligible for
SDVOSB set-aside
Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
SDVOSB Programs
“Two programs” confusion continues• MJL Enterprises, LLC, SBA No. VET-240 (2013):
Verification program applicable only to VA and FAA set-asides
• Reese Services, Inc., SBA No. VET-231 (2013): Verified SDVOSB found ineligible for Navy procurement
Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
SDVOSB Programs
Kingdomware Battle Ends?• Kingdomware Technologies, Inc. v. U.S., No. 2013-
5042 (Fed Cir. 2014):• Federal Circuit upholds COFC decision allowing VA
to use GSA schedule without “Rule of Two”• Federal Circuit scope may be broad
Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
SDVOSB Programs
New VA appeal right (Sept. 2013)• VA, SBA unable to agree on interagency appeal• VA “reconsiders” and decides to keep appeal jurisdiction• Initial VA SDVOSB protests decided by CVE Director• Appeals decided by OSDBU Executive Director• Potential flaws: no independent judges; appeal decisions not
published
Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
HUBZone Program
Wakan, LLC, B-408535.2 ( June 19, 2014)• HUBZone certified company bids on unrestricted procurement for supplies• Proposal states that manufacturing will be performed at facilities of a non-
HUBZone company• Procuring agency determines that subcontractor will perform more than
50% of manufacturing• Agency declines to apply HUBZone price preference clause, FAR 52.219-4• GAO upholds agency decision
Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
Small Business
Bell Pottinger Communications USA, LLC, SBA No. SIZ-5495
(2013):
• Management alone is not performance of “primary and vital” work under ostensible subcontractor rule
TISTA Science & Technology Corp., SBA No.
SIZ-5529 (2014):
• No automatic size recertifications for GSA task orders
TLS Contracting, Inc., SBA No. SIZ-5527 (2014):
• Small business size status measured by annual receipts, not profits
Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
Small Business
PTAC/SBDC Advisory Size Opinions• Proposed rule issued in late June 2014• Rule allows PTACs and SBDCs to issue advisory size status determinations• Small business acting in good faith reliance on PTAC/SBDC advisory opinion
has “safe harbor” from misrepresentation penalties• PTACs & SBDCs not required to provide advisory size opinions• No new funding allotted for size opinions• Comments on proposal due August 25
Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
New SBA Rules on Multiple Award Contracts
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www.smallgovcon.comTwitter @StevenKoprince
New SBA Rule on Multiple Award Contracts
Where “Rule of Two” is not met for a MAC, Agency must give “meaningful consideration” to other small business alternatives:
• Partial set-aside - Can be used where procurement’s requirements can be broken up into smaller, discreet requirements• Reservation of awards - Awards under a MAC solicitation can be reserved for small business even where Rule of Two
not satisfied• Order set asides - Agencies may issue unrestricted solicitations but commit in the solicitation to set-aside or reserve
some orders for small business
New Tools are encouraged but not required
On Ramp/Off Ramp: Contracting Officers have authority to allow new small businesses onto a MAC during performance and can remove contractors that are no longer small.
Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
New SBA Rule on Multiple Award Contracts
Every MAC and every order must be assigned a single NAICS code• Prohibits agencies from assigning multiple NAICS codes and taking credit if MAC/order is
awarded to a business that is small under some, but not all, of multiple codes
Limitations on Subcontracting• For set-aside contracts, compliance with limitations on subcontracting will be determined by
each period of the contract (base and each option)• Previous rule: compliance determined as of period of performance used in evaluating the bid
(often base plus all options)• For order set aside under unrestricted contract, compliance determined based on period of the
order• If order is competed among both small and large businesses, no subcontracting limit applies
Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
Interesting Cases: Strange But True
Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
Strange But True
Emax Financial, B-408260(July 25. 2013)• Small business protests small business set-aside• Argues that set-aside interferes with its ability to structure its
team• GAO denies protest, finding that “Rule of Two” was satisfied• The two? The incumbent-and EMax
Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
Strange But True
• Trailboss Enterprises, Inc., No. 13-296C (2013): Contractor protests its own award– Contract awarded in November 2012. After stop work
order, contractor directed to resume– Contractor complains that pricing is now outdated and
files a protest in effort to escape contract– Court dismisses protest and suggests that contractor
should have filed CVA claim instead
Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
What’s On The Horizon?
Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
On the Horizon
New SBA mentor-protégé programs for SDVOSBs, HUBZones and WOSBs
• SBA may also establish mentor-protégé programs for all small businesses
Reorganization of other agency’s mentor-protégé
programs
• Under 2013 NDAA, SBA will establish rules and approve other agencies’ M-P programs
Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
On the Horizon
SDVOSB Program Changes• May 2014: House passes 2015 NDAA• House-passed NDAA requires:
• VA to begin using SBA SDVOSB definitions immediately• VA to transfer verification function to SBA
• Senate bill: No immediate transfer; study Government-wide verification
Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
On the Horizon
WOSB Program Improvements• House-passed 2015 NDAA allows sole source
contracts for WOSBs• WOSB sole source thresholds: $6.5 million
(manufacturing); $4 million (other industries)
Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
Conclusion & Questions
Steven [email protected] 786-843-0450
www.smallgovcon.comTwitter @StevenKoprince
For More Information
Steven J. KoprincePartner(785) [email protected]
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