Georgia Tech Procurement Assistance Center

GAO says strict bid compliance with Buy American Act exception requirements not necessary

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The GAO recently sustained a protest finding that it was unreasonable for the Department of Energy (DOE) to reject a bid simply because it failed to strictly comply with all of the requirements for an exception to the BAA.

In Addison Constr. Co., B-416525, Addison Construction Company submitted a bid to construct a capacitor bank for DOE in Arizona. Addison’s bid informed DOE that a portion of the construction materials used would be foreign, not domestic. Addison’s bid requested an exception to the BAA pursuant to FAR clause 52.225-9, available when the cost of domestic construction material is “unreasonable” (i.e., it exceeds the cost of foreign material by more than six percent).

Under FAR clause 52.225-9, a contractor seeking an exception to the BAA construction materials requirement on the basis of unreasonable cost must include the following with its bid: price, quantity, unit of measure, and a description of the foreign and domestic materials at issue, along with a detailed justification for the use of foreign construction materials, a “reasonable survey of the market,” and a completed price comparison table in the format provided in FAR clause 52.225-9(d). In addition, the clause requires the contractor to provide the time of delivery or availability of the materials, the location of the construction project, specific supplier information (including the name, address, and telephone number for the supplier, and a copy of the supplier’s response or a summary thereof), and “other applicable supporting information.”

Keep reading this article at: https://www.lexology.com/library/detail.aspx?g=5c1472f9-6d91-4b8e-8983-ca1b544bf880 

10 problems DHS wants innovative small businesses to solve in 2019

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The Homeland Security Department released a list of 10 bleeding-edge research areas it plans to pursue in fiscal 2019 in partnership with innovative small businesses.

The department’s Science and Technology Directorate and Countering Weapons of Mass Destruction Office announced Friday the tentative list of technical areas for this year’s Small Business Innovation Research, or SBIR, program. In the coming year, Homeland Security SBIR officials are proposing research into topics including using drones to detect radiological threats, sharing cyber threat data, using blockchain for forensic analysis, and advanced identity management—from DNA to cyberspace.

“The SBIR program provides an opportunity for innovative small businesses to find solutions that meet the technology needs of the department’s operational components and the nation’s first responders,” William Bryan, senior official performing the duties of the undersecretary for science and technology, said in the announcement.

Homeland Security’s SBIR program obligated almost $250 million across 805 awards from its start in 2004 through 2015, the latest year with data available on the SBIR.gov dashboard. The program hit its height in 2006 with almost $29.9 million in funds obligated to 95 projects.

In 2015, Homeland Security’s program obligated $20.7 million to 48 projects. This amount is relatively small when compared to the largest SBIR awarders that year: the Energy Department at $193.6 million, Health and Human Services at $714.4 million and the Defense Department at $956.9 million.

The list for 2019 includes eight topics under the Science and Technology Directorate and two more under the CWMD office’s program.

Keep reading this article at: https://www.nextgov.com/emerging-tech/2018/12/10-problems-dhs-wants-innovative-small-businesses-solve-2019/153230/

Former company president settles False Claims Act case related to defective bullet proof vests

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Richard C. Davis, the founder and former president and CEO of Michigan-based Second Chance Body Armor, Inc., recently agreed to resolve claims under the False Claims Act in connection with his role in the sale of defective Zylon bullet-proof vests purchased by the United States for federal, state, local and tribal law enforcement agencies, the Justice Department has announced.

Mr. Davis will relinquish his interest in $1.2 million in assets previously frozen by the United States and will pay an additional $125,000 to the United States.  This settlement is based on Mr. Davis’ ability to pay.

Background

Second Chance sold body armor to state, local and tribal law enforcement agencies reimbursed by the Department of Justice’s Bulletproof Vest Partnership (BVP) program and to federal agencies under contracts with the General Services Administration. The United States alleged that Second Chance’s vests were defective due to the loss of their ballistic capability when exposed to heat and humidity. The United States also alleged that by 2001, Davis was aware that Second Chance’s Zylon body armor was degrading at what he described as a “disappointing” rate.

The United States further alleged that, rather than using a $6 million payment from Toyobo Co. Ltd., the manufacturer of Zylon fiber, to fix the degradation problem, Second Chance pocketed the money and Davis and other Second Chance owners began meeting with various investment bankers in an effort to sell Second Chance. These efforts to sell the company allegedly stopped after a Forest Hills, Pennsylvania police officer was shot through his Second Chance Zylon vest in June 2003. Second Chance filed for bankruptcy in 2004 and was liquidated.

Subsequent tests by the National Institute of Justice (NIJ) of Zylon-containing vests found that more than 50 percent of used vests could not stop bullets that they had been certified to stop. The performance of Second Chance Zylon vests were reported to be among the worst.  The NIJ removed all Zylon-containing vests from its list of compliant products, and Zylon is no longer used in ballistic vests.

Settlement

“The Department of Justice will pursue those who attempt to fraudulently profit at the expense of the United States, particularly when the stakes are life or death,” said Acting Associate Attorney General Jesse Panuccio.  “Bullet proof vests protect the brave men and women of our nation’s law enforcement community, and those who manufacture and sell these products have a solemn duty to ensure their safety and efficacy.”

The settlement resolves, in part, allegations filed in a lawsuit by Aaron Westrick, Ph.D., a former employee of Second Chance, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case as to the allegations against Davis. Dr. Westrick will receive $28,750 plus a share of whatever the government ultimately recovers from the previously frozen funds.

This settlement is part of a larger investigation of the body armor industry’s use of Zylon.  The United States has previously recovered over $132 million from 18 corporations and individuals who participated in the sale of Zylon body armor. The Civil Division has transferred over $22 million of these recovered funds to the BVP program to replace BVP funds which had been used to purchase Zylon vests. The funds transferred to the BVP program will be used to fund the purchase of additional ballistic-resistant vests for state, local and tribal law enforcement officers. The United States is continuing to pursue claims against Honeywell International Inc., which allegedly sold a laminated version of Zylon for use in police armor.

The investigation and litigation of this matter were handled by the Civil Division’s Commercial Litigation Branch; the General Services Administration, Office of the Inspector General; the Department of Commerce, Office of Inspector General; the Defense Criminal Investigative Service; the U.S. Army Criminal Investigative Command; the Department of the Treasury, Office of Inspector General for Tax Administration; the Air Force Office of Special Investigations; the Department of Energy, Office of the Inspector General; and the Defense Contracting Audit Agency.

The claims settled by this agreement are allegations only, and there has been no determination of liability.  The lawsuit partially resolved by the settlement is captioned United States ex rel. Westrick v. Second Chance Body Armor, et al., No. 04-0280 (PLF) (D.D.C.).

Source: https://www.justice.gov/opa/pr/former-second-chance-body-armor-president-settles-false-claims-act-case-related-defective

Augusta man sentenced for theft of government funds

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U.S. Attorney Sherri A. Lydon states that Phillip Thompson of Augusta, GA was sentenced for conspiracy involving theft of government funds, a violation of Title 18, United States Code, § 371.

U.S. District Judge J. Michelle Childs, of Columbia, SC sentenced Thompson to 23 months in jail after a sentencing hearing. The judge further ordered that Thompson repay $4,580,469.83 in restitution and, after his release from the Bureau of Prisons, that he serve three years on supervised release.

Facts presented in court established that Thompson worked at the Savannah River Site for Wise Services, and that, beginning in September of 2009 and continuing for several years, Thompson was involved in a scheme in which he and a co-defendant stole money using false and fraudulent invoices. An investigation by the U. S. Dept. of Energy’s Office of the Inspector General (OIG) and the Federal Bureau of Investigation (FBI) revealed that Thompson and his co-defendant stole more than six million dollars.

April G. Stephenson, Acting Inspector General for the Dept. of Energy, states: “The Office of Inspector General remains committed to ensuring the integrity of our contractors and subcontractors. Those who choose to abuse their positions of trust while hiding behind sophisticated embezzlement and fraud schemes, will be held accountable.”

The Energy Department’s OIG and the FBI investigated the case.  Assistant U.S. Attorney John C. Potterfield of the Columbia, SC office prosecuted the case.

Source: https://www.justice.gov/usao-sc/pr/augusta-man-sentenced-theft-government-funds

Read The Augusta Chronicle’s account of this story at: http://www.augustachronicle.com/news/20180703/columbia-county-man-gets-23-months-in-prison-in-mox-fraud-case

6 companies score $258 million in supercomputing contracts

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The Energy Department is investing hundreds of millions of dollars in researching powerful but energy-efficient computers.

The department is awarding $258 million in research contracts to six companies developing supercomputing technology. Over the next three years, those companies are expected to build out the hardware, software and applications for an exascale computing system 50 times faster than today’s most powerful computers, according to the Energy Department. The department is aiming to have one exascale system by 2021.

IBM, Intel, Hewlett-Packard, Advanced Micro Devices, Cray Inc. and NVIDIA were awarded research contracts and are expected to invest hundreds of millions of dollars of their own money, bringing the total cost of the project to about $430 million.

Keep reading this article at: http://www.nextgov.com/emerging-tech/2017/06/6-companies-score-258m-supercomputing-contracts/138769

DOE rescinds $5 billion award due to contractor sale after bid submission

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GAO-GovernmentAccountabilityOffice-SealA string of recent decisions have found the U.S. Government Accountability Office (GAO) struggling with the impact of corporate transactions on pending proposals.

  • FCi Federal, Inc., B-408558.7, B-408558.8, Aug. 5, 2015, 2015 CPD ¶ 245 (overturning award where “as a result of the sale . . . the original proposal, upon which the award decision was based, no longer reflects the intended approach to performance”).
  • Wyle Labs., Inc., B-408112.2, Dec. 27, 2013, 2014 CPD ¶ 16 (overturning award where the awardee had recently engaged in a corporate reorganization).
  • IBM U.S. Federal, B-409806 et al., Aug. 15, 2014, 2014 CPD ¶ 241 (noting that a corporate reorganization did not appear “to have any significant cost or technical impact on performance of the requirements”).

These decisions have led to significant uncertainty as to what best practices should be adopted by contractors in significant transactions.

Continuing this confusion is yet another case where an apparently successful offeror has lost its contract because of a transaction.  Last week, the National Nuclear Security Administration (NNSA) rescinded the award of a nearly $5 billion contract to a Lockheed Martin company—Nevada Site Science Support and Technologies Corporation (NVS3T)—after learning that the company had been sold to Leidos Innovations Corporation after submission of the bid.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=526492

Oct. 4th boot camp to show small and medium size manufacturers how to engage Energy Labs

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mitec-boot-campBusinesses in the energy sector are invited to come to the Georgia Tech Research Institute (GTRI) in Atlanta on October 4, 2016 to learn about a new program designed to help small- to medium-sized enterprises access national lab capabilities and assets.

The MITEC (Manufacturing Impacts Through Energy and Commerce) boot camp is part of the commitment of the U.S. Departments of Energy (DOE) and Commerce to support U.S. manufacturing by connecting businesses with the resources they need to succeed.

Attendees will get a chance to spend a few hours to learn how you can engage with two DOE National Labs — National Renewable Energy Lab (NREL) and Oak Ridge National Lab (ORNL) — to scale a material, utilize a set of mixed equipment for testing with expert advice from a scientist and/or engineer, and more. Leading experts will also provide information on several federal funding opportunities to work with the labs.

Attendees also will have a chance to learn how to work with the the Georgia Manufacturing Extension Partnership (GaMEP) to integrate new ideas and technologies into your manufacturing.

The featured keynote speaker will be Dr. Thomas R. Kurfess who served as the Assistant Director for Advanced Manufacturing at the Office of Science and Technology Policy in the Executive Office of the President. He had responsibility for coordinating Federal efforts in advanced manufacturing R&D.

Panels will discuss the capabilities and resources of the national laboratories, how to access these resources, and other assets available for Georgia businesses. Ample time will be provided for networking and visiting exhibits.

Qualified companies must be Georgia-based, have under 500 employees, and be involved in one or more of the advanced energy technology areas listed below:

  • solar
  • wind
  • geothermal
  • water power
  • bioenergy
  • fuel cells
  • batteries
  • vehicle technology
  • smart buildings
  • energy efficiency
  • advanced materials
  • advanced manufacturing
  • additive manufacturing

Participants also must be willing to take a 10-minute pre-event survey.

The cost to attend is $25 which includes free on-site parking, presentation, boxed lunch, coffee/
water and afternoon snack.  The event will take place from 9:00 am to 3:00 pm.

Register at: https://www.eventbrite.com/e/manufacturing-impacts-through-energy-and-commerce-boot-camp-georgia-tickets-26648346923

sponsors

Questions may be directed to Kate Ringness at kate.ringness@americanjobsproject.us

Other dates and cities for this event are September 14, 2016 at NextEnergy in Detroit, Michigan and October 6, 2016, at James Madison University in Harrisonburg, Virginia.  Details at: http://energy.gov/eere/cemi/manufacturing-impacts-through-energy-and-commerce-mitec-state-boot-camps

U.S. files False Claims Act complaint against two Energy Dept. contractors performing work at Savannah River Nuclear Site

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The Justice Department (DOJ) announced on Friday (Mar. 18, 2016) that it has filed a complaint under the False Claims Act in the U.S. District Court for the District of South Carolina against two companies for allegedly overcharging the Department of Energy under a management and operations contract at the Savannah River Nuclear Site in Aiken, South Carolina.

The contractors in question are Savannah River Nuclear Solutions, LLC (SRNS) and Fluor Federal Services, Inc. (FFSI).  SRNS is a joint venture of FFSI, Newport News Nuclear Inc. and Honeywell International.

Justice Dept. seal - CopyThe Dept. of Justice (DOJ) brief alleges that the contractors, since August 2008, “knowingly included unallowable costs in inflated claims to the United States Department of Energy (DOE), while falsely representing that such costs had not been claimed under the contract.”  The costs in question include unallowable home office and bid and proposal costs as well as inflated claims.

The False Claims Act bars any person from knowingly presenting to the Government a false or fraudulent claim for payment or approval.

DOE’s Savannah River Site is a 310-square-mile site located in Aiken, Barnwell and Allendale counties, South Carolina. The Savannah River Site was constructed in the early 1950s to produce weapons-grade plutonium and tritium for use in the United States’ nuclear weapons arsenal. The Savannah River Site is managed by the DOE-Savannah River Operations Office, located in Aiken, South Carolina, whose mission is to serve the national interest by ensuring the safe, open, and cost effective clean-up and maintenance of the Site and its nuclear materials.  SRNS holds a contract with DOE to manage Site facilities.

The case is captioned United States v. Savannah River Nuclear Solutions and Fluor Federal Services, Inc., 1:16-825-JMC (D.S.C).  The claims asserted in the United States’ complaint are allegations only, and there has been no determination of liability.

A copy of the DOJ brief can be downloaded here: https://www.justice.gov/opa/file/833651/download

Source: https://www.justice.gov/opa/pr/united-states-files-suit-against-savannah-river-nuclear-solutions-llc-and-fluor-federal

 

Lockheed Martin to pay $5 million to settle contract violations, whistleblowers to receive $920,000

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Lockheed Martin Corporation and subsidiaries Lockheed Martin Energy Systems and Lockheed Martin Utility Services (collectively, Lockheed Martin) have agreed to pay the United States $5 million to resolve allegations that they violated the Resource Conservation and Recovery Act (RCRA) and, in misrepresenting their compliance with RCRA to the Department of Energy (DOE), knowingly submitted false claims for payment.

Energy Dept.The settlement action relates to Lockheed Martin’s contracts with DOE to operate the Paducah Gaseous Diffusion Plant in Paducah, Kentucky.

 

The government’s lawsuit alleged that Lockheed Martin violated RCRA, the statute that establishes how hazardous wastes must be managed, by failing to identify and report hazardous waste produced and stored at the facility, and failing to properly handle and dispose of the waste.  The government further alleged that this conduct resulted in false claims for payment under Lockheed Martin’s contracts with the Department of Energy.

Of the $5 million settlement amount, Lockheed Martin will pay $4 million to resolve the government’s False Claims Act allegations and its subsidiaries (Lockheed Martin Energy Systems and Lockheed Martin Utility Services) will each pay $500,000 – $1 million total – in RCRA civil penalties.

Justice Dept. seal - Copy“Government contractors are required to follow the same federal laws that apply to everyone else,” said U.S. Attorney John E. Kuhn, Jr. for the Western District of Kentucky.  “These companies do not get a pass on compliance, especially when their responsibilities include managing and disposing of hazardous waste.  Today’s settlement should serve as a reminder that my office and the Department of Justice will pursue all credible allegations of false claims and of environmental regulatory violations.”

Lockheed Martin operated the Paducah Gaseous Diffusion Plant under contracts with the Department of Energy and a government corporation, the U.S. Enrichment Corporation, from 1984 to 1999.  During that time, Lockheed Martin was responsible for the facility’s uranium enrichment operations.  Enriching uranium increases the proportion of uranium atoms that can be used to produce nuclear fuel for weapons and civilian energy production.  As the name of the plant suggests, the process used was called “gaseous diffusion.”

In addition to uranium enrichment, Lockheed Martin was responsible for environmental restoration, waste management, and custodial care at the site, which occupies 3,500 acres in McCracken County, Kentucky.  Uranium enrichment operations ceased at the plant in 2013.

The settlement resolves two lawsuits filed under the qui tam, or whistleblower, provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery.  The lawsuits were filed by the Natural Resources Defense Council, Inc. and several former employees of Lockheed Martin who worked at the Paducah facility.  The United States partially intervened in the lawsuits, which were then consolidated into one action.  The whistleblowers will collectively receive $920,000 from the United States’ portion of the settlement.

The case is captioned United States, ex rel. John David Tillson, Natural Resources Defense Council, Inc., et al. v. Lockheed Martin Corp., et al., Civil Action No. 5:99CV00170-GNS (W.D. Ky.).  The claims resolved by this settlement are allegations only; there has been no determination of liability.

Source:  https://www.justice.gov/opa/pr/lockheed-martin-agrees-pay-5-million-settle-alleged-violations-false-claims-act-and-resource

Energy IG: Solyndra knowingly ripped-off government

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There’s plenty of blame to go around in the green-energy debacle of Solyndra, but the blame begins with the executives of the solar-panel company itself.

Energy Dept.That’s a big takeaway from the Energy Department inspector general’s new report on Solyndra, a company once highly touted by the White House that collapsed in 2011 after getting a $535 million federal loan two years earlier.

The IG’s report finds that executives with the California company, ahead of winning the loan, repeatedly gave the Energy Department, the credit-rating agency Fitch, and outside analysts bad, overly rosy information about its sales contracts.

“Our investigation confirmed that during the loan guarantee application process and while drawing down loan proceeds, Solyndra provided the Department with statements, assertions, and certifications that were inaccurate and misleading, misrepresented known facts, and, in some instances, omitted information that was highly relevant to key decisions in the process to award and execute the $535 million loan guarantee,” the report states.

“In our view, the investigative record suggests that the actions of certain Solyndra officials were, at best, reckless and irresponsible or, at worst, an orchestrated effort to knowingly and intentionally deceive and mislead the Department,” it adds.

Keep reading this article at: http://www.govexec.com/oversight/2015/08/energy-report-solyndra-knowingly-ripped-government/119582/

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