Georgia Tech Procurement Assistance Center

Defense agencies continue awarding contracts to suspended firms, report finds

By

At least nine major contractors, working primarily for defense-related agencies, have benefited from waivers under a 1981 law that allows federal officials to override the firms’ suspensions for such misconduct as fraud, bribery and theft.

That’s according to a new study of 22 contract decisions released this week by Bloomberg Government. Using a Freedom of Information Act request filed with the General Services Administration, the publication also found that some agencies had failed to forward the required documentation on the waivers to GSA.

Such household names as IBM, BP and Boeing have benefited from the law, wrote reporter Sam Skolnik.

Keep reading this article at: https://www.govexec.com/contracting/2018/08/defense-agencies-continue-awarding-contracts-suspended-firms-report-finds/150424

In doubt? Check with GTPAC!

By

Your team at the Georgia Tech Procurement Assistance Center (GTPAC) stands ready to offer you advice about any aspect of government contracting — especially when you have any doubt about the legitimacy of a contract-related service or solicitation.

We’ve published many articles before about government contracting scams (click here to see previous articles), and once again we want to bring another one to your attention.

Just a few days ago, a GTPAC client contacted one of our Counselors and asked about the legitimacy of a request for a quotation he received, supposedly from the Dept. of Defense (DoD).  Once we examined the email and the attachment that our client sent us, we told him to run — not walk — away from it!

Here Are the Details

The email was purportedly from a DoD official soliciting a quote for some laptops and computer drives.

We examined the email and its attachment, including the following:

  • We called the phone number in the email which was answered by a person who didn’t identify himself.  When we asked questions, he said that he’d have the person identified in the email call us back with details.  No one called back.
  • We checked the identity of the person who supposedly sent the email.  The email’s Quote form identified him as Deputy Director for Procurement at AT&L.   We determined that, in reality, he is DoD’s Deputy Director for Earned Value Management.  AT&L (Acquisition, Technology and Logistics) is a unit within DoD that no longer exists; it’s been reorganized into two groups: research and engineering (R&E) and acquisition and sustainment (A&S).  (See details of that reorganization by clicking here.)
  • We also identified the DoD official’s real email address and his actual phone number; they were not the email address or phone number shown in the email and on the Quote form that was sent to our client.
  • We noted that the federal solicitation number shown on the Quote form was not in the correct format, and the Quote form itself was not a form we have ever seen before.
  • The wording of the email was sloppy and unprofessionally prepared.

Based on the above, we advised our client to not respond because we believe this is a probable scam which will lead to an order to ship the products to a bogus shipping address, for which payment will never be received.  We also alerted the appropriate DoD officials of this probable scam.

What You Should Do

It’s as simple as 1-2-3.

  1. Stay alert to possible scams involving government contracting.  There are many scams in circulation literally every day.
  2. Don’t let the temptation of landing a sale overtake your common sense.  If it looks like easy money, it’s probably bogus.
  3. Whenever you are in doubt, contact GTPAC for advice.  We’ll be happy to check things out for you and provide you with our opinion.  It’s as simple as forwarding anything suspicious to us at: gtpacatl@innovate.gatech.edu.

Remember, the GTPAC team is here to help you succeed in the government marketplace!

P.S.:  If your business is located outside the state of Georgia, you can find a procurement technical assistance center (PTAC) by clicking here.

 

2 men stole minority businesses’ IDs to get public contracts

By

Authorities say two upstate New York contractors used the stolen identities of two minority-owned businesses to fraudulently obtain public construction contracts worth millions of dollars.

The state inspector general, attorney general and labor commissioner say Tuesday that 47-year-old Michael Martin and 52-year-old D. Scott Henzel have been indicted on charges that include identity theft and scheme to defraud.

Authorities say the two Albany-area men ran a now-defunct contracting company that took over two minority-owned businesses and used those businesses to land millions of dollars in public works projects.

Keep reading this article at: https://www.newsobserver.com/news/politics-government/national-politics/article215022305.html

New login required for SAM

By

To do business with the federal government, you need an account in the System for Award Management (SAM).

Whether you already have a SAM account or need to set one up, you need to know there is a new login procedure.

All users attempting to login to SAM are now automatically re-directed to first create a Login.gov user account.  If you already have a SAM username and password they no longer work, and you will be unable to access your SAM account until you have created a Login.gov account.

Creating a Login.gov Account
In order to create a Login.gov account, you will need each of the following:
  1. The email address and password associated with your SAM account.
  2. Access to the same email account to receive all confirmation emails.
  3. A working telephone number through which you can receive the security code that will be sent to you from Login.gov.
Need help with any step of the SAM registration process?

Never fear!  The Georgia Tech Procurement Assistance Center (GTPAC) will provide you with help at no charge.  Simply contact the GTPAC counselor located nearest you; our staff directory is at: http://gtpac.org/team-directory.  (Businesses located outside the state of Georgia can obtain free help from their nearest procurement technical assistance center.  Consult the national contact list at: http://www.aptac-us.org/find-a-ptac.)

Other recent changes to SAM

Each business must mail an original, signed notarized letter to GSA’s Federal Service Desk within thirty (30) days of their SAM activation or risk having their SAM registration deactivated.

Because of recent fraudulent activity associated with the SAM database, the General Services Administration (GSA) issued a rule in late March 2018 that requires all SAM registrants (“entities”) to provide an original, signed notarized letter identifying your company’s “authorized Entity Administrator.”   The notarized letter must follow a strict format.  GSA’s notarized letter template is available here: SAM_Notary_Letter_Template_4.12.18_GSA_version

In instances where businesses have federal contract awards or contract payments pending, GTPAC — and the other PTACs across the country — can offer special assistance to expedite the processing of their notarized letters.  When contacting your PTAC counselor, be sure to let us know if you are facing either of those two circumstances.

Don’t get stuck with an expired SAM registration — be alert to changes in the renewal process

By

If your business is registered in the federal government’s System for Award Management (SAM), you must renew your registration annually.

Be alert: Change is coming!

Whether you are familiar with the SAM renewal process or a newcomer to the process, things are about to change on June 29th.

Beginning June 29, 2018, two changes take place:

  • A new login process for SAM takes effect.  As a result of the new process, all users attempting to log in to SAM will be automatically be re-directed to create a Login.gov user account.  Your current SAM username and password will no longer work beginning on June 29th, and you will be unable to access your SAM account until you have created a Login.gov account.  (See “Creating a Login.gov Account” below.)
  • You’ll have more time to submit a notarized letter.  Businesses who create or update their registration in SAM also will no longer need to have an approved Entity Administrator notarized letter on file before their registration is activated or renewed.  Once your SAM account is activated, you’ll have 30 days to submit the notarized letter.  (See “Creating a Notarized Letter” below.)
Creating a Login.gov Account
In order to create a Login.gov account, you will need each of the following:
  1. The email address and password associated with your SAM account.
  2. Access to the same email account to receive all confirmation emails.
  3. A working telephone number through which you can receive the security code that will be sent to you from Login.gov.

Remember, once June 29, 2018 arrives, your SAM username and password will be deactivated, and you will no longer be able to access your SAM account with those credentials.

Creating a Notarized Letter

Each business must mail an original, signed notarized letter to GSA’s Federal Service Desk within thirty (30) days of their SAM activation or risk having their SAM registration deactivated.

Because of recent fraudulent activity associated with the SAM database, the General Services Administration (GSA) issued a rule in late March 2018 that requires all SAM registrants (“entities”) to provide an original, signed notarized letter identifying your company’s “authorized Entity Administrator.”   The notarized letter must follow a strict format.  GSA’s notarized letter template is available here: SAM_Notary_Letter_Template_4.12.18_GSA_version

Need help with any step of the SAM registration or renewal process?

Never fear!  The Georgia Tech Procurement Assistance Center (GTPAC) will provide you with help at no charge.  Simply contact the GTPAC counselor located nearest you; our staff directory is at: http://gtpac.org/team-directory.  (Businesses located outside the state of Georgia can obtain free help from their nearest procurement technical assistance center.  Consult the national contact list at: http://www.aptac-us.org/find-a-ptac.)

In instances where businesses have federal contract awards or contract payments pending, GTPAC — and the other PTACs across the country — can offer special assistance to expedite the processing of their notarized letters.  When contacting your PTAC counselor, be sure to let us know if you are facing either of those two circumstances.

SBA’s IG questions eligibility of women-owned small businesses to receive contract set-asides

By

Federal contracting officers, along with firms representing themselves as woman-owned small businesses (WOSBs) did not comply with federal regulations in 50 instances of sole-source contract awards.  As a result, there is no assurance that the contracts were awarded to firms eligible to receive sole-source awards under the WOSB program administered by the Small Business Administration (SBA).

That’s the conclusion reached by the SBA’s Office of Inspector General (OIG) in a report issued on June 20, 2018.

The OIG undertook its review of SBA’s WOSB program to determine whether the sole-source provisions that Congress included in the 2015 National Defense Authorization Act (NDAA) were being effectively implemented.   Congressional intent was to expand the number of federal contracts being awarded to WOSBs and streamline the process by which WOSB status could be validated.  Thus, in its review, the OIG wanted to determine whether sole-source contract awards comply with program requirements, and whether firms that receive the set-asides conform to the self-certification requirements.

The OIG selected a sample of 56 contracts, worth $55.7 million, to review.  The sample represented 81 percent of the sole-source contracts awarded to WOSBs between the period of Jan. 1, 2016 and Apr. 30, 2017.  The OIG determined that federal regulations were not followed by federal officials or the WOSB firms themselves in connection with 50 of the 56 contracts.  The 50 contracts were valued at $52.2 million.  Based on its findings, the OIG determined that there “was no assurance that these contracts were awarded to firms that were eligible to receive sole-source awards” under the WOSB program.

The weaknesses noted in the OIG’s report are similar to those noted in a review conducted in 2015.  Then, the OIG recommended that SBA should increase its training and outreach to both federal contracting officials and businesses regarding their responsibilities under the WOSB program.

Once again, in its latest report, the OIG makes a series of recommendations to SBA administrators to remedy the newly-identified problems.  Among them:

  • The SBA should prevent contracting personnel from awarding contracts to ineligible firms by implementing a certification process that includes “reviewing, analyzing, and making an affirmative decision that applicants are eligible to participate” in the WOSB program.
  • SBA also should strengthen controls in FPDS-NG to preclude agencies from using ineligible NAICS codes for the WOSB program’s contracts.

Overall, the OIG is recommending that the WOSB program should be operated more in line with other certification programs operated by the SBA.  In response to these recommendations, however, the SBA estimates that it will take at least another year before it implements a WOSB certification process.  SBA management also states it does not have the responsibility for improving the integrity of data in FPDS-NG.

The OIG concludes that since errors are likely to continue to be made in NAICS code selection and that WOSB firms will be allowed to continue to self-certify, the program is subjected to “unnecessary risks of fraud and abuse.”  In light of this condition, the OIG’s recent report offers six specific recommendations the SBA should take now to expand oversight and prevent agencies from awarding contracts to ineligible firms.

Military bought thousands of boots labeled ‘Made In the USA’ — but they were from China

By

Five executives with a former leading manufacturer of U.S. military boots have been sentenced in federal court for saying the boots were made in Tennessee when they were actually produced in China.

According to an indictment filed in U.S. District Court, the actual Chinese manufacturer of the boots was told to include “USA” on the label of Wellco boot uppers that were then shipped to the U.S. The “Made in China” tags were removed, the indictment says. Soles were affixed to the boots at Wellco’s plant in Morristown, Tennessee, and elsewhere, according to the document.

From 2006 through 2012, the U.S. Department of Defense paid at least $138 million to Wellco for military footwear, according to the indictment.

Keep reading this article at: https://taskandpurpose.com/wellco-execs-military-boots-china/

See earlier articles at:

 

Free help available to aid businesses with new SAM registration and renewal requirements

By

If your business needs assistance in either establishing or renewing your registration in the federal government’s vendor database known as the System for Award Management (SAM), you can get free help.

Whether you are seeking SAM registration for the first time or you need to accomplish your annual renewal in SAM, the Georgia Tech Procurement Assistance Center (GTPAC) will provide you with help at no charge.  (Businesses located outside the state of Georgia can obtain free help from their nearest procurement technical assistance center.  Consult the contact list at: http://www.aptac-us.org/find-a-ptac.)

New SAM Registration Requirements

There are new registration and renewal procedures that are now in place.  Because of recent fraudulent activity associated with the SAM database, the General Services Administration (GSA) issued a rule in late March 2018 that requires all registrants (“entities”) to provide an original, signed notarized letter identifying your company’s “authorized Entity Administrator.”   The notarized letter must be submitted and approved before your registration will be activated.

The notarized letter template is available here: SAM_Notary_Letter_Template_4.12.18_GSA_version

An update to the notarized letter rule was issued by GSA on June 11, 2018.  The update is in two parts:

  1. Effective June 11, 2018, entities who create or update their registration in SAM to apply only for federal assistance opportunities such as grants, loans, and other financial assistance programs  no longer need to have an approved Entity Administrator notarized letter on file before their registration is activated.  (Note that this does not include entities competing for federal contracts.)
  2. Effective June 29, 2018, all non-Federal entities who create or update their registration in SAM also will no longer need to have an approved Entity Administrator notarized letter on file before their registration is activated.  This rule includes businesses that are competing for, or that currently have, federal contracts.

It is important to note that all entities must mail the original, signed notarized letter to GSA’s Federal Service Desk within thirty (30) days of activation or risk having their SAM registration deactivated. 

New SAM Log-In Requirements Take Effect June 29, 2018
GSA is also implementing a new login process for SAM which takes effect on June 29, 2018.  As a result of the new process, all users attempting to log in to SAM on or after June 29, 2018 will be automatically directed to create a Login.gov user account.  Your current SAM username and password will no longer work beginning on June 29th, and you will be unable to access your SAM account until you have created a Login.gov account.
In order to create a Login.gov account, you will need each of the following:
  1. The email address and password associated with your SAM account.
  2. Access to the same email account to receive all confirmation emails.
  3. A working telephone number through which you can receive the security code that will be sent to you from Login.gov.

Remember, once June 29, 2018 arrives, your SAM username and password will be deactivated, and you will no longer be able to access your SAM account with those credentials.

Free Help Is Available!

As mentioned in the second paragraph of this article, GTPAC (or, if you’re located outside Georgia, your local PTAC) will help you with all aspects of the SAM registration and renewal processes.  Simply contact the GTPAC counselor located nearest you; our staff directory is at: http://gtpac.org/team-directory.

In instances where businesses have federal contract awards or contract payments pending, GTPAC and the other PTACs across the country can offer special assistance to expedite the processing of their notarized letters.  When contacting your PTAC counselor, be sure to let us know if you are facing either of those two circumstances.

Further Details

For more help with the SAM registration process, including how to protect your company’s interests, please read:

 

 

Scam Alert: Malicious e-mail spoofs being sent to vendors

By

The Defense Logistics Agency (DLA) is reporting that a fake solicitation is being sent to vendors in the form of a Request for Quotation (RFQ).

The fake email solicitation, purporting to be from DLA, has been targeting GSA STARS II vendors.

The emails are not from DLA.mil.  Instead, they are coming from a “Reply-To” address ending in @dla-mil.us, which is not a government address.

In some cases, “stars2@american consultants.com” has been identified to supposedly send messages on behalf of a DLA Contract Specialist — these are also fake.

Some of the bogus emails suggest that vendors use the “stars2” Google Group at https//groups.google.com/a/americanconsultants.com to obtain more information or to unsubscribe from the email communication.  Be advised that “stars2” is not a DLA affiliated group.

Always remain cautious of emails that arrive in your inbox that are not explicitly addressed to you.  Sometimes scammers attempt to hide their actions by addressing their targets in the “bcc” line.

Also, please be aware that the phone number in these recent bogus emails is not a DLA phone number.  In addition, the RFQ form in the email is not an official government form, nor is the signature block legitimate.

DLA’s notice about this matter can be seen here: Vendor Phishing Notice -DLA – 8 June 2018.  The notice shows copies of the bogus emails.

Bottom line: Vendors should always remain vigilant about suspicious emails, and be cautious about opening email attachments.  Questions or comments can be directed to DLA at CERTFusionCell@dla.mil.

In addition, if you ever have a question about the legitimacy of any emails having to do government contracting opportunities, especially those which solicit a fee, please feel free to contact the Georgia Tech Procurement Assistance Center (GTPAC) for advice.  GTPAC can be emailed at gtpacatl@innovate.gatech.edu.

To read previous articles about scams involving government contracting, visit http://gtpac.org/?s=scam

Judge imposes maximum sentences in Fort Gordon bid-rigging conspiracy

By

Two men who took part in a bid-rigging and bribery scheme involving $54 million in contracts at Fort Gordon received the maximum prison terms of five years last Wednesday despite the recommendation from the U.S. Attorney’s office for a reduction in their sentence.

Calvin Lawyer, 60, and Dwayne O. Fulton, 59, admitted in November to their roles in the conspiracy that ran from 2008, when Lawyer retired as a full colonel and started his own business called Communications Research Engineering and Consultant Group with the goal of obtaining government contracts. But Lawyer didn’t need to compete with other contractors because he paid bribes to ensure he got no-bid contracts from his former subordinate Col. Anthony Roper.

After learning they were under investigation in 2016, Lawyer, Roper and his wife, Audra Roper, and Fulton, who worked for the large defense contractor Kratos Defense & Security Solutions inc., fabricated documents to try to cover their tracks.

Keep reading this article at: http://www.augustachronicle.com/news/20180523/judge-imposes-maximum-sentences-in-fort-gordon-bid-rigging-conspiracy

Read earlier posts about this case here:

Contracting News

Read More

Contracting Tips

Read More

GTPAC News

Read More

Georgia Tech News

Read More