Georgia Tech Procurement Assistance Center

The Army will need traditional vendors’ help putting startup tech to use

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The Pentagon is increasingly embracing the startup community as means to expand its technological arsenal, but traditional defense contractors could still be the ones putting most of those new tools into practice, according to top military brass.

In August, the Army stood up the Futures Command, a four-star unit charged with overseeing the service’s decade long modernization effort. With a 500-person staff and an annual budget of $100 million, the group will work to build state-of-the-art weaponry, vehicles and communications networks.

Central to that mission is working with the small companies on the bleeding edge of artificial intelligence, virtual reality and other emerging technologies, said Lt. Gen. Eric Wesley, director of the Army’s Futures and Concepts Center and deputy commander of the Futures Command.

“We want to be part of this ecosystem, and so we are embedding ourselves into it,” Wesley said recently at SXSW, speaking just a few blocks from the Austin-based startup incubator where Army Futures set up shop. “[The startup community] is the group we most need to be engaging with.”

Keep reading this article at: https://www.nextgov.com/emerging-tech/2019/03/army-will-need-traditional-vendors-help-putting-startup-tech-use/155428/

GSA, Air Force open bidding for $5.5B 2nd Generation IT contract

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The General Services Administration, on behalf of the Air Force, has kicked off a multiple-award acquisition that could be worth up to $5.5 billion.

Last fall, GSA and the Air Force announced their intent to create a blanket purchase agreement to provide hardware, software and IT services to replace the expiring NETCENTS-2 contract with one called 2nd Generation IT (2GIT).

The five-year contract will be split among five line item categories: data center, end user, network, radio equipment, and order level material. In a presolicitation document, GSA said it estimates spending of between $850 million and $1.1 billion on the contract annually. Public solicitation documents did not reveal if that estimate has changed.

Through GSA’s Cooperative Purchasing program, the contract is open to all federal, state, local and tribal agencies “to purchase IT, security, and law enforcement products and services offered through specific Schedule contracts.” GSA will award spots on the contract to several vendors that those agencies can purchase from.

Keep reading this article at: https://www.fedscoop.com/2git-air-force-bidding-open/

GAO denies protest to LPTA solicitation ridden with cost uncertainty and local zoning code conflicts

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Federal agencies have long been afforded wide discretion in defining solicitation requirements to meet their contracting needs.  But are a solicitation’s requirements acceptable even where they’re likely to conflict with local zoning codes?  What about where the solicitation documents conflict with one another on whether certain requirements are considered “requirements” at all?  And finally, is an LPTA procurement acceptable where such conflicts have undoubtedly led to price uncertainty among the bidders?

GAO says, “yes” to all of these, so long as the requirements meet the agency’s needs.

In Flaherty Family Trust, B-414563.3 (Aug. 16, 2018), GSA issued an RLP seeking to lease a “professional” office space location for the Department of Homeland Security U.S. Customs and Border Protection port in Savannah, Georgia. GSA anticipated award to the lowest-price technically-acceptable offeror.  The main RLP contained general internal space qualifications. But a separate “Agency Special Requirements” document provided specialized usage and internal space specifications that were inconsistent with the main solicitation. The RLP also required 44 government parking spaces with an additional 96 public-parking spaces within a quarter mile. But these parking specifications did not comply with local county zoning codes for majority of potential office locations.

Keep reading this article at: http://smallgovcon.com/gaobidprotests/gao-denies-protest-to-lpta-solicitation-ridden-with-cost-uncertainty-and-local-zoning-code-conflicts/ 

GAO continues to expand the scope of ‘prototypes’ that DoD may buy through OTs

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The most common question heard about the recent boom in the Department of Defense’s spending on other transactions, or OTs, is a simple one:  How can I get in on the action? 

Understandably, OTs – essentially contracts not subject to procurement laws or regulations like the Federal Acquisition Regulation (FAR) – are very enticing to traditional and nontraditional contractors alike.  And opportunities for OTs abound, particularly since Congress, in 2015, codified the DoD’s authority to award OTs for “prototype projects” (previously just a pilot program) and expanded that authority to include OTs for follow-on production efforts.  But there are limits to DoD’s authority, foremost being that, in general, DoD may acquire only “prototypes” through OTs, and must buy all other goods and services through traditional, FAR-based procurement contracts.

So the question of how to access DoD’s surge in OT funding hinges, among other things, on more specific questions:  What exactly is a “prototype”?   And do my offerings fit the bill?

The answers, it seems, are quite a lot and probably yes.  Congress provided very little legislative direction, instead leaving to DoD the decision over just how broad its authority might reach.  Unsurprisingly, it took a broadminded approach to the term “prototype,” and so far the Government Accountability Office (GAO), as legislative oversight, has upheld the DoD’s expanding interpretation.  This continued in ACI Technologies, Inc., B-417011, Jan. 17, 2019, 2019 CPD ¶ 24, where the GAO found the DoD properly awarded a prototype OT for, among other things, training programs, skills development outreach, and the drafting of best practices for fostering commercial development of secure electronic parts.

Specifically at issue in ACI Technologies was a solicitation by the Naval Surface Warfare Center seeking a firm to manage a consortium of contractors in support of the agency’s Strategic & Spectrum Missions Advanced Resilient Trusted Systems (S2MARTS) initiative.  This initiative’s stated goal is to obtain “innovative technological solutions to address current and future security threats in the electromagnetic spectrum (EMS), trusted microelectronics, and strategic missions hardware environments,” which includes “developing a relationship with industry and academia to establish streamlined processes for obtaining innovative, State-of-the-Art (SOTA) technologies” and “establishing an agile and collaborative working relationship amongst the Government and academia/industry.”

Keep reading this article at: https://www.jdsupra.com/legalnews/gao-continues-to-expand-the-scope-of-91815/

For more information about OTs, see the Defense Acquisition University’s OT Guide at: https://aaf.dau.mil/ot-guide/

GSA releases RFQ for Centers of Excellence model to ‘deliver results far more easily’

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The General Services Administration has released a request for quotation for Phase One of its Center of Excellence discovery services, laying the groundwork for GSA to set up CoEs at new partner agencies.

Rather than rely on one contract for the discovery work at each agency, the blanket purchase agreement aims to allow GSA to find the vendor that best fits each agency’s unique needs.

“This BPA is intended to account for each future CoE Agency Partner by offering a means of initial and continuous discovery work, by Center need, considering the various different factors, influences, and context that apply to each Agency Partner’s organizational transformation needs,” the RFQ states.

The request, which was released Monday, comes about a month after GSA gathered industry feedback from its request for information.

Keep reading this article at: https://federalnewsnetwork.com/acquisition/2019/03/gsa-releases-rfq-for-centers-of-excellence-model-to-deliver-results-far-more-easily/

GAO sustains protest where agency inconsistently evaluated proposal

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GAO generally defers to an agency’s judgment when it comes to the evaluation of proposals. This deference flags, however, when an agency evaluates competing proposals inconsistently; or, in other words, treats offerors disparately.

Let’s take a look at how GAO, in a recently sustained protest, found that the agency’s evaluation was unreasonable.

In Bristol Environmental Remediation Services, LLC, B-416980 et al. (Jan. 16, 2019), the Army Corps of Engineers solicited environmental remediation and munitions response services. The agency noted that it would evaluate the proposals on a best-value tradeoff basis, with non-price considerations being significantly more important than price. In all, the agency planned to award up to 10 fixed-price IDIQ task-order contracts.

After conducting discussions with offerors in the competitive range and obtaining revised proposals, the agency assigned all offerors identical ratings for their non-price factors, with one exception. For the least important non-price factor–which consisted of offerors’ proposing a technical approach for a sample project–the agency assigned identified two weaknesses in Bristol’s proposal and assigned it a marginal rating. (This marginal rating cost Bristol a contract, which the agency awarded to six other offerors.) As you can imagine, Bristol challenged the two assigned weaknesses.

Keep reading this article at: http://smallgovcon.com/gaobidprotests/inconsistency-killed-the-cat-gao-sustains-protest-where-agency-inconsistently-evaluated-proposal/

Arbitration award is ‘irrational’ because it disregards contract’s plain text

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Aspic Engineering and Construction Company (Aspic), a local Afghan subcontractor, entered into multiple subcontracts with ECC Centcom Constructors and ECC International (ECC), the prime contractor, to construct buildings and facilities in Afghanistan.  The subcontracts contained terms and conditions “applicable to all U.S. Government subcontracts,” and mandated that Aspic owed ECC the same obligations that ECC owed to the federal government.  The subcontracts also incorporated multiple Federal Acquisition Regulation (FAR) clauses, including FAR 49.2 through 49.6, which govern the recovery of expenses in the event a contractor is terminated for convenience, i.e., required documentation and procedures.

In 2014, ECC was terminated for convenience, so ECC notified Aspic that it also intended to terminate Aspic’s subcontracts for convenience.  Aspic, in turn, submitted multiple settlement proposals to get paid for its work under the subcontracts.  When ECC denied most of Aspic’s proposals, Aspic filed for arbitration, seeking payment for its costs of partially performing under the subcontracts.  Despite Aspic’s failure to comply with the FAR requirements governing payment for partial work in the event of a termination for convenience, the arbitrator awarded Aspic over $1 million.  The arbitrator concluded that Aspic was not required to strictly comply with the FAR requirements based on several factors, including: (i) the subcontracts were drafted to give every advantage to ECC; (ii) it was not reasonable to expect that Afghan subcontractors would be able to conform to the strict and detailed requirements of general contractors on U.S. Federal projects; (iii) it was not reasonable that the parties had the same expectations; and (iv) there was not a true meeting of the minds.

Keep reading this article at: https://www.jdsupra.com/legalnews/ninth-circuit-finds-arbitration-award-25846/

To view the full text of the court’s decision, courtesy of Bloomberg, click here.

Atlanta businessman indicted on 51 counts including bribery, tax evasion, and money laundering

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City of Atlanta contractor Lohrasb “Jeff” Jafari has been charged in a 51 count federal indictment with conspiratorial bribery, bribery, tampering with a witness, tax evasion, money laundering, and structuring.

“Jeff Jafari allegedly paid multiple bribes to two local officials over a period of years and then attempted to obstruct the federal investigation into his misconduct,” said U.S. Attorney Byung J. “BJay” Pak. “He also failed to pay income taxes on millions of dollars he earned from city contracts.  Instead, he used the funds to live a lavish lifestyle.  Whether you bribe, take a bribe, or otherwise misuse the public’s money to enrich yourself – it’s all corruption. We will vigorously pursue any such cases.”

According to U.S. Attorney Pak, the charges, and other information presented in court on March 6, 2019:

  • Beginning at least in 2014 to January 2017, Jafari allegedly paid thousands of dollars in bribe payments to Adam Smith, the then-Chief Procurement Officer of the City of Atlanta.
  • At the time, Jafari was the Executive Vice-President of PRAD Group and did millions of dollars in work with the City of Atlanta, primarily under the City’s Architectural and Engineering contracts.
  • Jafari and Smith met at Atlanta-area restaurants where they discussed City business, among other things, and Jafari would generally pay Smith $1,000 in cash in the restaurant bathroom.
  • Jafari similarly paid bribes to a local official in DeKalb County in April and August of 2014.

According to the U.S. Attorney’s office, in exchange for Jafari’s payments to Smith, Smith provided Jafari with information and counsel regarding the City of Atlanta’s procurement processes, among other information. When PRAD Group or a joint venture in which PRAD Group was a partner became a successful proponent on a City of Atlanta contract or Request for Proposal, Smith approved and submitted the award of those projects. Smith also approved task and/or purchase orders for those projects.

In February 2017, Jafari became aware of the federal investigation into his payments to Smith, at which time he confronted Smith in an effort to intimidate and persuade Smith to provide false information to federal law enforcement about the payments, instructing Smith to deny taking bribe money from Jafari.

Between 2014 through 2016, Jafari also willfully failed to pay income taxes to the IRS. During those years, Jafari withdrew large amounts of cash from corporate bank accounts and used corporate funds for personal expenses, among other things, to avoid the assessment of income tax. In 2014, Jafari owed at least $150,000; in 2015, at least $300,000; and in 2017, at least $700,000 to the IRS. Jafari is additionally charged with numerous counts of money laundering for engaging in financial transactions with funds earned from City of Atlanta work he obtained while he was paying bribes to Adam Smith.

Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.  This case is being investigated by the FBI and IRS Criminal Investigation.

Source: https://www.justice.gov/usao-ndga/pr/lohrasb-jeff-jafari-indicted-51-counts-including-bribery-tax-evasion-and-money

See federal indictment here: Jeff Jafari-Indictment-03.06.2019

See September 28, 2017 article about guilty plea by City of Atlanta purchasing chief here: https://gtpac.org/2017/09/28/city-purchasing-head-pleads-guilty-to-conspiracy-charge

DARPA’s pilot project aims to increase funding opportunities in SBIR and STTR programs

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Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) are the principal set-aside programs for small business participation in federal research and development funding, yet the requirements for administering and managing these programs have not changed significantly in decades.

To keep pace with discovery in science and technology worldwide, DARPA now intends to release SBIR/STTR opportunities on an out-of-cycle basis, separate from the three pre-determined announcements traditionally issued directly through the Department of Defense (DoD). The change is expected to reduce the overall time from opportunity announcement to contract award.

Prior to the change, the timeline for SBIR/STTR funding opportunities was managed independently of DARPA’s primary technology programs, which resulted in small businesses being isolated from the benefits associated with integration into established program communities. Under the terms of the pilot program, however, DARPA will institute timesaving measures to speed program integration, such as Direct to Phase II authority, which allows the agency to bypass Phase I research requirements once performers provide satisfactory documentation of feasibility, and/or proof of scientific merit, technical merit, and commercialization potential.

DARPA will also seek to identify SBIR/STTR Phase II awardees with a compelling go-to-market strategy for participation in a newly created commercialization accelerator. The DARPA accelerator will provide additional funding to employ one entrepreneur-in-residence or business development lead who will offer the awardee direct support for activities including, but not limited to, customer engagement planning, market analysis and mapping, competitive analysis, techno-economic analysis, IP securement strategy development, and financial plan creation.

“It’s essential to change our acquisition practices to mirror the commercial marketplace if we hope to attract revolutionary companies that normally avoid working with the federal government,” said Dr. Steven Walker, director of DARPA. “This move will provide DARPA the flexibility to operate at a much faster pace than traditional SBIR/STTR contracting cycles have historically allowed.”

Congress established the Small Business Innovation Research (SBIR) Program in 1982 to provide opportunities for small businesses to participate in federal government-sponsored research and development. Since that time, DARPA has leveraged SBIR awards to promote and sustain small business innovation as well as foster the development and transition of critical national security capabilities.

Full details regarding DARPA’s SBIR/STTR programs and associated Broad Agency Announcements are available at: https://www.darpa.mil/work-with-us/for-small-businesses.

Source: https://www.darpa.mil/news-events/2019-03-01

See DARPA’s 10 focus areas for small businesses here: https://www.nextgov.com/emerging-tech/2019/03/darpa-highlights-10-focus-areas-innovative-small-businesses/155279/

Pentagon requests voluntary refund of millions of dollars from contractor TransDigm

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The Army and Defense Logistics Agency will both seek reimbursement on millions of dollars from contractor TransDigm, following an Inspector General report into the company’s contracts with the Pentagon.

TransDigm, which produces specialized parts for aircraft such as pumps, valves and batteries,, earned “excess profit” 112 of 113 contracts reviewed by the IG’s office, per a report released last Wednesday. The IG found that the company received $16.1 million in excess profit between January 2015 and January 2017, with a cost that could go up due to spare parts in the future.

The 112 contracts, signed with the Army or DLA, had profit margins ranging from 17 to a whopping 4,451 percent; The IG’s office calls profit percentages of 15 percent or below to be “reasonable.”

Keep reading this article at: https://www.defensenews.com/industry/2019/02/27/pentagon-requests-voluntary-refund-of-millions-of-dollars-from-contractor-transdigm/

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