Georgia Tech Procurement Assistance Center

$3.6 million settlement resolves procurement fraud investigation involving 8(a) firm

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VMJ Construction, LLC (VMJ) and its owner, Colorado resident Michael T. Vigil, as well as Maryland-based Vigil Contracting, Inc. (Vigil Contracting) and its operations manager, John J. Vigil, have agreed to pay the United States $3.6 million to resolve allegations that they defrauded the Small Business Administration (SBA) 8(a) Business Development Program.

The SBA’s 8(a) Business Development Program for economically and socially disadvantaged small businesses serves dual roles.

  • First, the program helps socially and economically disadvantaged small business owners gain access to valuable federal contracts, thereby promoting economic and social mobility.
  • Second, the program saves taxpayers money by spurring a competitive marketplace.  By promoting the development of small businesses, the 8(a) Program helps prevent the formation of monopolies that would stifle innovation and restrict consumers’ ability to negotiate lower prices.

It is important that the 8(a) Program is reserved only for companies that actually meet the program’s criteria because misuse of the program deprives legitimate 8(a) Program participants of valuable economic opportunities and undermines the integrity of the program.

There are several rules that businesses in the 8(a) program must abide by.

  • The socially and economically disadvantaged owner of the business must manage the day-to-day operations of the company and have responsibility for the long-term decision-making for the company.
  • 8(a) Program applicants must also truthfully disclose any affiliation with other businesses so that SBA may accurately assess whether the applicant meets the definition of a small business, and whether the applicant shows potential for success and the ability to perform the requisite percentage of the contracts secured through the Program.
  • Businesses also cannot remain in the 8(a) Program indefinitely; after nine years, they graduate from the program and are no longer eligible to bid on 8(a) contracts.

VMJ was accepted into the 8(a) Program in 2011.  Michael T. Vigil, who is Hispanic, was the 91% owner of VMJ, and was the socially and economically disadvantaged individual upon which VMJ based its application to the 8(a) program.  John J. Vigil was a 9% owner of VMJ.  John J. Vigil was also the operations manager of Vigil Contracting.  Vigil Contracting is a 2011 graduate of the 8(a) Program.  Since 2011, Vigil Contracting has not been eligible to bid for contracts reserved for 8(a) program participants.

The United States contends that VMJ made false statements to the SBA regarding its eligibility to participate in the 8(a) program.  Specifically, VMJ relied almost exclusively upon Vigil Contracting to bid on and complete the work awarded to VMJ under the 8(a) program.  VMJ used Vigil Contracting’s bonding, office space, employees, contractors, software, computers, and vehicles.  Vigil Contracting employees and contractors, including John J. Vigil, made the high-level business decisions of VMJ and managed the day-to-day operations of VMJ.   Michael T. Vigil did not control VMJ, did not set the long-term policy, nor manage the day-to-day management of the business.  VMJ knowingly misrepresented these facts to SBA, in both VMJ’s initial application to participate in the 8(a) program and in an annual update to SBA.  As a result of the deception, the Army, the Navy, and the Department of Agriculture awarded VMJ several federal government contracts set aside for 8(a) program participants.

“The United States uses these set-aside contracts for a clear reason — to help small businesses owned by economically and socially disadvantaged individuals.  This program continues the promise of the American Dream by helping new small businesses get on their feet, and with more businesses on their feet, our markets are healthier and more competitive,” said U.S. Attorney Jason Dunn. “When companies lie about their eligibility to get these contracts, they prevent other deserving small businesses from getting the assistance that Congress intended.”

Source: https://www.justice.gov/usao-co/pr/36-million-settlement-resolves-procurement-fraud-investigation-against-colorado-and

GSA awards first wave of contracts in White House’s IT overhaul

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The General Services Administration on Wednesday announced awardees of the first round of contracts to support the White House’s IT Modernization Centers of Excellence.

GSA issued awards to support each of the five pillars in the administration’s IT modernization efforts: SIE Consulting Group for cloud adoption; McKinsey & Company for IT infrastructure optimization; ICF Incorporated for customer experience; Kaiser Associates for contact center; and ICF Incorporated for service delivery analytics.

Beginning with the Agriculture Department—the testbed agency for the first centers of excellence—the groups will develop strategies to tackle issues within their respective spheres, creating best practices so other agencies can quickly follow suit.

Keep reading this article at: http://www.nextgov.com/it-modernization/2018/03/gsa-awards-first-wave-contracts-white-houses-it-overhaul/146678/

2016’s most anticipated technology contracts

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This year is a big one for federal IT contracts.

The top two contract vehicles to be awarded within the next year, the General Services Administration’s Enterprise Infrastructure Solutions (now out for bid) and Alliant 2, have a collective ceiling value of $100 billion.

GSA's EIS contract timeline.
GSA’s EIS contract timeline.

Toss in close to a dozen more contracts with potential multibillion-dollar ceilings, and you’ve got a particularly active – and exceedingly important – year ahead for federal agencies, contracting officials and competing contractors.

“This is the biggest year for federal IT contract vehicles in a decade, and when the dust settles by the middle of next year, the playing field will be set for the next decade in IT services,” said Brian Friel, principal of One Nation Analytics LLC, in an interview with Nextgov.

Keep reading this article at: http://www.nextgov.com/cio-briefing/2016/03/most-anticipated-it-contracts-2016/126511

Also see: Five charts that show where the federal IT budget is going next year.

Newnan man gets two years in prison for falsely representing himself as SDVOSB on federal contracts

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Newnan, Ga., resident Arthur W. Singleton was sentenced Thursday to two years in prison for fraudulently obtaining several government construction contracts reserved for veterans with service-related disabilities.

He also was ordered to pay $181,000 in restitution.

According to U.S. Attorney Sally Quillian Yates, the charges and other information presented in court: Singleton owned a construction firm named “Singleton Enterprises” and had more than 30 years of experience in the construction industry.

In 2007, Singleton, 63, approached a Vietnam veteran (who was bedridden from surgeries related to his combat injuries) and proposed staring a business to exploit the veteran’s disabled status to get federal government contracts that were reserved exclusively for companies owned and run by service-disabled veterans. When the veteran agreed to the scheme, Singleton formed two companies using the veteran’s name.

Keep reading this article at: http://www.bizjournals.com/atlanta/news/2013/06/20/singleton-enterprises-owner-gets-two.html 

USDA backs off controversial labor rule targeting contractors

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In a win for federal contractors and contracting officers alike, Agriculture Department officials decided on Jan. 30 to withdraw a new final rule requiring companies to keep their subcontractors and suppliers in line with federal labor laws, a department spokesman told Washington Technology on Jan. 31.

Under USDA’s rule, companies contracting with the department would have to certify that they comply with labor laws and that their subcontractors of any tier and their suppliers also comply. It would have included reporting requirements for violations and the threat of tough action by the department if there were violations.

Officials took a unique approach to rule-making and added it as a direct final rule to the Agriculture Acquisition Regulation on Dec. 1. It was set to take effect Feb. 29. However, they said if the rule garnered any adverse comments, they would withdraw the rule in part or in whole.

The Council of Defense and Space Industry Associations, a group of six industry groups, objected to the rule in a letter to the USDA last week. The council said the rule overlapped more than 180 federal labor laws and regulations to implement the laws. The rule would also add additional work to both the prime contractors, which would have to monitor their subcontractors and suppliers, and the contracting officers who would review reports on compliance. Further, USDA could possibly bump heads with the Labor Department in the case of a labor law violation.

The council’s letter pushed USDA to withdraw the whole rule.

“Yesterday, USDA withdrew the Dec. 1, 2011, direct final rule adding a new clause to the Agriculture Acquisition Regulation,” the USDA spokesman said.

Alan Chvotkin, executive vice president and counsel for the Professional Services Council, a member of the overarching-industry group objecting the rule, said the USDA did well to withdraw its rule after receiving the letter from the council about the rule’s ambiguities and overlap with other standing laws.

“I’m pleased USDA acted promptly in light of well-reasoned comments from the council,” he said.

About the Author: Matthew Weigelt is a senior writer covering acquisition and procurement for Federal Computer Week. This article appeared on Jan. 31, 2012 at http://washingtontechnology.com/articles/2012/01/31/usda-withdraws-labor-law-rule.aspx?s=wtdaily_010212.

Man indicted for fraudulently winning gov’t contracts set-aside for service disabled vets

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A federal grand jury indicted a Luthersville man this week on charges of getting $2.85 million in government contracts by fraudulently claiming his business was controlled by a veteran.

Arthur Wayne Singleton, a 62-year old construction contractor, defrauded programs that set aside certain government contracts for businesses owned and controlled by disabled veterans, according to a federal indictment.

“This defendant allegedly took advantage of a service-disabled veteran of the Vietnam War, using the veteran’s name and disabled status to gain millions of dollars in federal contracts,” U.S. Attorney Sally Quillian Yates said. “Fraud like this deprives legitimate disabled veteran-owned small businesses of the opportunity to enter into construction contracts with the government.”

Attempts to reach Singleton or his lawyer Brian Steel for comment were unsuccessful.

The contract program is an important resource for disabled vets because they are often discriminated against in employment and business opportunities, said David Autry, spokesman for the  Disabled American Veterans in Washington DC.

“For whatever reason,” he said, “people prefer not to do business with them.”

Singleton approached a bed-ridden Vietnam vet, identified in the indictment only as “GT”, in 2007  and proposed they form a joint venture called  GMT Mechanical that could take advantage of set-aside construction contracts from the federal government, according to the indictment.  GT suffers from severe knee injuries and other health issues as a result of his service. Singleton, who had more than 30 years of construction and federal contract experience, completely controlled the enterprise, the indictment said, and federal rules required the disabled veteran to control the business and own 51 percent.

Singleton secured contracts from the Department of Veterans Affairs, the Department of Agriculture, the U.S. Coast Guard and the U.S. Army Corps of Engineers for construction projects around the country.  According to the indictment, Singleton paid GT $17,964 because he said he had  “to make it look as though GT was part of the business.”

The U.S. Attorney’s office has not indicted GT but declined to say whether he was a cooperating witness.

The payment to GT followed an inquiry by the VA, which sent a letter in February 2008 stating GMT Mechanical wasn’t eligible for “service-disabled veteran-owned contracts” because GT didn’t control the business or own 51 percent of it. But Singleton went ahead and submitted bids for a $290,000 contract in Iowa with the Agriculture Department, a $96,000 contract in Wyoming with the Homeland Security Department and a  $1.375 million contract in North Dakota with the Defense Department and forged GT’s signature on the bids, according to the indictment.

— by  Steve Visser, The Atlanta Journal-Constitution, 5:41 p.m. Thursday, November 10, 2011.  Find this article at: http://www.ajc.com/news/atlanta/man-accused-of-defrauding-1222311.html

House subpoenas four agencies for small-business noncompliance

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Four federal agencies were issued subpoenas by the House Small Business Committee on Oct. 20 for not complying with the Small Business Act’s procurement policies, according to a committee staffer.

The departments of Justice, Agriculture, Treasury and State were summoned to appear before the the Small Business subcommittee on contracting and workforce on Nov. 1 to testify why they are in noncompliance.

At issue is the “structure” of these agencies’ Small and Disadvantaged Business Utilization Offices (OSDBU) and “the fact that they are not reporting to the agency head or deputy head,” wrote Darrell Jordon, house committee spokesman, in an e-mail to Washington Technology.

OSDBUs were conceived in 1978 with the purpose of having federal agencies set aside contracts for small and disadvantaged businesses. The Small Business Act also has requirements that agencies report their procurement activities with small and disadvantaged businesses.

Justice, Agriculture, Treasury and State were warned of their missteps and given a chance to remedy the situation after a June Government Accountability Office small business contracting report found seven agencies not in compliance.

Following that report, letters to agencies were sent by subcommittee Chairman Mick Mulvaney (R-SC). As a result, the Interior Department and Social Security Administration are now in compliance, and a third, the Commerce Department, was pardoned due to an administrative issue.

In September, agencies were reminded of their noncompliance by memo and a hearing was held on Sept. 15 by the subcommittee to examine the GAO report and the economic impact of noncompliance.

As part of the subpoena procedure, the four agencies must produce a number of documents, including paperwork relating to their small business procurement programs, attainment of small business goals or challenges to decisions not to restrict competition to small business between Jan. 20, 2009, and Sept. 30, 2011.

About the Author: Alysha Sideman is an online content producer with 1105 Government Information Group.  Published by Washington Technology – Oct. 21, 2011 at http://washingtontechnology.com/articles/2011/10/21/small-biz-committee-subpoenas.aspx

Four departments resist call to comply with Small Business Act

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Conflicting interpretations of agency internal reporting requirements in the Small Business Act have prompted a stalemate between four departments and congressional overseers examining the performance of programs designed to assure that small businesses get a fair share of federal contracting.

The Government Accountability Office in a report had found that seven agencies were not complying with the law’s requirement that the Offices of Small and Disadvantaged Business Utilization in every department except Defense must report directly to the agency.

At a hearing Thursday with the House Small Business Subcommittee on Contracting and the Workforce, a GAO specialist reported that the State, Commerce, Treasury and Justice departments recently had declined requests that they comply.

Subcommittee Chairman Mick Mulvaney, R-S.C., told the hearing that a failure to comply presents a clear conflict of interest and is “completely unacceptable . . .  President Obama says that ‘small business contracting should always be a high priority in the procurement process,’ but his administration disregards the basic protections for small business contractors,” Mulvaney said. “Instead of just lip service, he should make sure his administration is following the law in regards to small business requirements.”

OSDBUs were created in 1978 to help reserve some federal contracts for for-profit small business concerns in which socially and economically disadvantaged individuals own at least a 51 percent interest and manage and control daily business operations. Concretely, they seek to make sure that the tendency of contracting officers to bundle contracts for larger contractors does not exclude the disadvantaged. Reporting directly to an agency’s leader rather than only to its contracting officers is considered essential to fair consideration of contract awards, and more than half the agencies GAO surveyed said their OSDBUs report only to the agency head.

On Sept. 9, Small Business Administrator Karen Mills sent a memo to all agency heads asking them to comply. “Open and direct communication between the OSDBU director and the secretary, deputy secretary or their equivalent is paramount to ensure that small businesses receive the maximum practicable opportunity to compete for and win federal contracts that allow them to grow their businesses and create jobs,” she wrote.

GAO’s June report said seven noncomplying agencies also were out of compliance in 2003. They include Agriculture, Commerce, Interior, Justice, State, Treasury and the Social Security Administration. In August, Mulvaney sent letters to the noncomplying agencies asking them to respond by Aug. 31 about how they “intend to rectify the reporting relationship.”

William Shear, director of financial markets and community investments at GAO, explained at the hearing that Commerce and Justice disagreed that they’re not in compliance, while State and Treasury made a legal argument that they are free to delegate the authority for how OSDBUs report.

Shear told Government Executive that Agriculture didn’t reply, Interior sent a letter saying it will comply, and SSA promised to comply but hasn’t followed up with documentation.

Claims by Commerce and Justice that they are in compliance, Shear said at the hearing, “don’t fit the fact pattern” obtained when auditors interviewed the OSDBUs about interaction with agency heads. He said GAO found evidence of tension and frustration at  OSDBUs in agencies that were not complying because contracting offices are not always fulfilling their needs. “But some tension is healthy,” Shear said. He noted that there are no sanctions for noncomplying agencies.

Ranking member Judy Chu, D-Calif., agreed with the call for compliance at the hearing, which also dealt with mentor-protégé programs and SBA’s performance on data on its procurement center representatives. “Failure to comply with this requirement not only shows a callous disregard for the law, but also shortchanges small businesses that end up suffering the consequences of OSDBU’s diminished agency standing,” she said.

A spokesman for Commerce, Kevin Griffis, told Government Executive that “the department is in compliance with the law, and both its record and the progress being made to continue to improve its performance speak for themselves. In 2010, the Small Business Administration, in its Small Business procurement score card, awarded the department a grade of ‘A’ for its procurement practices — up from the previous year’s ‘C.’

Justice spokeswoman Gina Talamona said in an email that the department “fully supports the mission of the Office of Small and Disadvantaged Business Utilization. Consistent with the Small Business Act, department regulations provide that the director report directly to the deputy attorney general. Although OSDBU is located within the department’s Justice management division for administrative purposes, the director still reports to the deputy attorney general on substantive matters.”

Mulvaney said he plans to hold another hearing on OSDBUs and invite agency heads or senior officials from noncomplying agencies, adding, “They won’t enjoy it.”

— by  Charles S. Clark – Government Executive – September 16, 2011 at http://www.govexec.com/story_page.cfm?articleid=48818&dcn=e_gvet

Agencies told to go green on 95 percent of purchasing

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The Obama administration’s campaign to have agencies “lead by example” in sustainable purchasing became stricter this week when the Federal Acquisition Regulations Council released an interim rule on green procurement.
Following up on President Obama’s 2009 executive order on green management, the draft published Tuesday in the Federal Register would require agencies “to leverage agency acquisitions to foster markets for sustainable technologies, materials, products and services.”
It tasks the head of each agency with ensuring that 95 percent of new contract actions are for products and services that are energy efficient, water efficient, bio-based, environmentally preferable or non-ozone depleting, adhering to criteria set out by the Environmental Protection Agency and the Agriculture Department. With the exception of weapons systems, agencies also must aim to procure items that contain recycled content and are nontoxic.
The toughened policy is being spearheaded by the Defense Department, NASA and the General Services Administration. It requires all federal contractors to support the government’s goals in environmental management, and includes new requirements for electronic or other paper-saving methods for submitting documents required by contracts.
“In the face of changing environmental circumstances and our nation’s heightened energy demands, the federal government must lead by example to create
a clean-energy economy that will increase prosperity, promote energy security, protect the interests of taxpayers and safeguard the health of our environment,” the rule states.

Agencies have until Aug. 1 to submit comment.

– by Charles S. Clark – Government Executive – June 1, 2011 – http://www.govexec.com/story_page.cfm?articleid=47921&dcn=e_gvet

2010’s Top 10 contracts (so far)

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From huge multiple award contracts to significant awards to single winners, we look at the largest contract awards announced during the first three months of 2010.

Contracts announced during January, February and March had values that ranged from $266 million to $2.8 billion.

Our rankings are based on the ceiling value of the contract, and not the actual value of any work performed to date.

Readers are expected to supply their own drum roll and Lettermanesque quips, so on with the countdown…

No. 10. General Atomics wins Air Force UAS support contract

General Atomics Aeronautical Systems Inc. won a $266 million contract for program and technical support for the MQ-1 Predator and MQ-9 Reaper unmanned aerial systems.

Work will include program and configuration management, logistics, technical services, flight and operations, software maintenance and data collection.

General Atomics also will handle urgent and depot repairs, inventory control and spare part management.

 9. SAIC captures $351M Navy contract for technical and engineering support

Under a five-year, $351 million Navy contract, Science Applications International Corp. will support the Naval Surface Warfare Center-Crane Division and the Joint Special Operations Response Department.

The department provides the Defense and Homeland Security departments with training and support involving sensors, communications, mobility and special munitions and weapons.

 8. General Dynamics wins $387M Army contract

General Dynamics Corp. will provide a variety of technical support and training advisory services to the Army under a five-year contract that could be worth as much as $387 million.

The Army’s Program Executive Office for Simulation, Training and Instrumentation, needs technical, management and professional engineering support services for the procurement and fielding of constructive training systems.

Services to be performed by General Dynamics consist of engineering, integration, exercise and experimentation support; gaming, materiel purchases, maintenance, supply support and post-fielding support.

7. CGI Federal wins $395M follow-on State Department contract

Under a $395 million, 10-year blanket purchasing agreement, CGI Federal Inc. will provide systems integration and consulting services and support for more than 5,000 State Department and U.S. Agency for International Development users of the Joint Financial Management System at more than 300 posts and missions around the world.

CGI has three goals under the contract – modernize systems, provide business information and financial data and lower the total cost of ownership for its customers.

6. SRA wins $500M contract to modernize farm programs

SRA International will work with the Agriculture Department under a $500 million contract to help the agency modernize the technology and business processes it uses to serve farmers across the country.

The Application Transformation and Modernization Systems Integrator blanket purchase agreement was awarded through the General Services Administration schedule and will tap into Recovery Act funds.

The contract will be used to modernize how farm benefit programs and services are delivered. Goals include streamlining business processes, rapidly implementing new farm programs, modernizing technology platforms, and improving access and convenience for producers, ranchers and farmers.

5. SAIC secures $625M Navy award

Science Applications International Corp. won a $625 million contract from the Navy’s Program Executive Office of Command, Control, Communications, Computers and Intelligence. The contract calls for the company to develop software as well as modify and enhance existing C2 systems.

SAIC will provide software engineering, design, development, integration and modification, as well as test and evaluation services. The company also will provide integrated logistics support, and configuration and program management services as required, SAIC said in a statement.

4. Raytheon wins $886M award to boost GPS accuracy

Raytheon Co. has won a contract from the Air Force worth $886 million to develop a new element of the Global Positioning System that will improve the accuracy of information from GPS satellites.

The contract is the first of two development blocks of the advanced control segment (OCX), which should have a significant effect on GPS capabilities.

The OCX system will include anti-jam capabilities and improved security, accuracy and reliability and will be based on a modern service-oriented architecture to integrate government and industry open-system standards.

3. Lockheed scores $940M anti-IED award/p>

Lockheed Martin Corp. will produce Improvised Explosive Device jammers for the Navy under a indefinite-delivery, indefinite-quantity contract that has a ceiling value of $940 million.

In the first task order, Lockheed will build Symphony Radio Controlled Improvised Explosive Device Defeat jammer systems. The Symphony systems are approved by the U.S. government for sale through the Foreign Military Sales program to allied, coalition and partner nations for operations in Iraq, Afghanistan and in other nations.

Symphony is programmable and designed for easy installation, operation and maintenance on diverse platforms used by security forces worldwide. It also is compatible and interoperable with other communications systems and jamming devices, the statement said.

2. Lockheed, Northrop win CANES contracts worth nearly $1B

Defense contracting giants Northrop Grumman Corp. and Lockheed Martin Corp. will assist the Navy with its Consolidated Afloat Networks and Enterprise Services program known as CANES. Each won separate contracts. Lockheed Martin’s has a ceiling of $937 million and Northrop’s is worth $775 million.

The contract is designed to streamline and consolidate Navy information technology networks aboard its ships, and will help the Navy deploy new technologies.

The Navy wants next-generation command and control systems and wants to integrate shipboard servers, workstations, and networking systems with the Navy’s shore-based Next Generation Enterprise Network (NGEN) and the naval portion of the Global Information Grid.

1. CSC, Stanley share $2.8B State Department contract

Computer Sciences Corp. and Stanley Inc. each won a prime contract to run non-immigrant visa application processing for the State Department. The Global Services Strategy contract is worth $2.8 billion over 10 years and the two companies will compete for task orders for work around the world.

The contract builds off a pilot program CSC ran in Mexico to process non-immigrant visa applications. Non-immigrant visas are for tourists, business visitors, students and others who wish to come to the United States, but aren’t planning to become immigrants.

During 2008, 8 million visa applications were processed, according to an industry source close to the competition.

By Nick Wakeman – Washington Technology – Apr. 09, 2010 – About the Author: Nick Wakeman is the editor of Washington Technology.

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