Georgia Tech Procurement Assistance Center

Bipartisan bill would ban reverse auctions for federal construction contracts

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House members introduced bipartisan legislation on Thursday to improve the procurement process for federally funded construction projects.

Reps. Ro Khanna, D-Calif., and Mark Meadows, R-N.C., introduced the “Construction Consensus Procurement Improvement Act” (H.R. 5644).  If passed, it would ban federal agencies from using reverse auctions to award design and construction contracts.  This procurement method often favors businesses offering the lowest price, rather than those that are most qualified, they said.  The Senate passed its version of the bill in late December.

Reverse auctions can “compromise quality, overlook small businesses, or even require a new bidding process down the road, eliminating any initial savings,” the lawmakers said in a press release. “Reverse auctions are ultimately inappropriate platforms for design-build contracts, which require design concepts, key personnel, and technical solutions to be incorporated into any successful final decision.”

Continue reading at:  Government Executive

Supply company owner pleads guilty to $1 million fraud scheme

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The owner of three fraudulent commercial supply companies has pled guilty to cheating approximately 40 subcontractors out of more than $1 million.

From February 2010 through August 2015, Keith B. Fisher Sr. of Philadelphia used FedBid.com to submit quotes and offers for his companies KLA International Inc., Quad Trade Services Inc. and TCI Technologies. After winning federal contracts, Fisher and his associates would subcontract third-party vendors to provide goods to government agencies with the intention to not pay or only pay nominal amounts to the 40 victim vendors.

Keep reading this article at: http://www.federaltimes.com/http:/www.federaltimes.com/articles/supply-company-owner-pleads-guilty-to-1m-fraud-scheme

How a bot is changing federal tech purchasing

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18F at GSAA bot managed to clinch the final bid on a recent federal cloud contract, offering to work with an Amazon Web Services broker on an aspect of Cloud.gov for $2,866.

Sixty-nine offers from seven bidders in—and seconds before the bid closed—the bot named the lowest price in what may be the General Services Administration’s first auction with significant bot activity, a spokesperson told Nextgov.

Bots are software applications that run automated tasks over the internet. The winning vendor had built an open-source bot hoping others would use it, but no one did, according to a blog post by GSA’s digital consultancy, 18F.

Keep reading this article at: http://www.nextgov.com/cio-briefing/2016/08/how-bot-changing-federal-tech-purchasing/130687

18F app acquisition pilot could be ‘a terrible idea’

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The innovation team at General Services Administration’s 18F has been testing new ways to speed up the acquisition process, particularly when it comes to agile development of software. Today (Oct. 26, 2015), the team will be trying out what could be “a terrible idea.”

18F at GSA18F members will be posting an open competition to GitHub for work on the team’s CALC tool. The work will be paid for using the agency’s micro-purchasing authority, which lets federal offices procure products or services under $3,500 using a credit card.

The bidding will start at $3,499 and the lowest bidder will be given 10 days to produce working code. If the winning vendor fails, the next lowest bidder will have 10 days to succeed where their colleagues could not.

Keep reading this article at: http://www.federaltimes.com/story/government/acquisition/2015/10/22/micro-purchase-pilot/74392760/

Reverse auctions: Last-second bid was “late”

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In a reverse auction, a bid filed literally at the last second was excluded as late, perhaps because the reverse auction system did not process the bid until a few seconds after the deadline.

GAO-GovernmentAccountabilityOffice-SealAs a recent GAO protest demonstrates, reverse auctions – by their very nature – encourage last-second bids, but it is the prospective contractor that may pay the price if the reverse auction system does not immediately process a bid.

The GAO’s decision in C2G Ltd. Co., B-411131 (May 12, 2015) involved a Defense Logistics Agency solicitation for maintenance services on government-owned equipment.  The procurement was conducted using a a third-party reverse auction system, operated by Procurex, Inc.

The reverse auction began at 9:00 a.m. Eastern Standard Time on February 6, 2015.  The reverse auction was scheduled to end at 9:30 a.m. EST.

At 9:04:34 a.m., C2G Ltd. Co. placed a bid of $1,335,687 and became the “lead” bidder.  C2G’s “lead” bid was visible to other offerors.  C2G remained in the “lead” position until 9:28:55 a.m., when a competitor placed a bid of $1,294,725 and became the “lead” bidder.

Keep readin g this article at: http://smallgovcon.com/gaobidprotests/reverse-auctions-last-second-bid-was-late/

 

GAO doubles down on FedBid ruling

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The GAO has sustained a second protest based upon FedBid’s suspension of a contractor from its system.

For the second time in less than one week, the GAO held that the contractor’s suspension from FedBid–and resulting inability to bid on a contract–was improper because the matter was not referred to the SBA under the SBA’s Certificate of Competency procedures.

GAO-GovernmentAccountabilityOffice-SealThe GAO’s decision in Latvian Connection, LLC, B-410981 (April 6, 2015) involved a Department of the Interior RFQ for the fabrication and installation of mobile shelving system components.  The procurement was conducted through FedBid’s electronic reverse auction system.

Latvian Connection, LLC, wished to compete for the award.  However, in July 2014, FedBid suspended Latvian Connection’s FedBid user account.  The FedBid suspension notice stated, in part: “System and Business Integrity: Latvian Connection has taken actions to repeatedly and purposely interfere with FedBid’s business relationships.”

Since Latvian Connection’s FedBid account was suspended, it was unable to compete for the procurement.  Latvian Connection filed a GAO protest.  It argued, in part, that its exclusion from the competition was a negative responsibility determination, which should have been referred to the SBA.

Keep reading this article at: http://smallgovcon.com/gaobidprotests/gao-doubles-down-on-fedbidcoc-ruling/

GAO: Small business FedBid suspension was improper

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The suspension of a small business’s FedBid account was improper because the matter was not referred to the SBA under the SBA’s certificate of competency procedures.

In an important decision for small businesses participating in reverse auctions, the GAO recently held that FedBid could not properly suspend a small business’s user account for a supposed lack of “business integrity,” thereby causing the small business to be ineligible to bid on a federal solicitation, without a referral to the SBA.

The GAO’s decision in Latvian Connection, LLC, B-410947 (Mar. 31, 2015) involved a Department of State solicitation for first aid kits and related medical supplies.  DOS conducted the solicitation as a reverse auction on FedBed.  The solicitation was set aside for small businesses.

Latvian Connection, LLC, wished to compete for the award.  However, in July 2014, FedBid suspended Latvian Connection’s FedBid user account.  The FedBid suspension notice stated, in part: “System and Business Integrity: Latvian Connection has taken actions to repeatedly and purposely interfere with FedBid’s business relationships.”

Keep reading this article at: http://smallgovcon.com/gaobidprotests/small-businesss-fedbid-suspension-was-improper-says-gao/

Reverse auctions once again in lawmakers’ crosshairs

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Lawmakers are marshaling arguments to restrict the contracting tool called a reverse auction, criticizing agency reliance on a practice dominated by a single private firm at a Thursday hearing of the House Small Business subcommittee.

Rep. Richard Hanna, R-N.Y., who has introduced H.R. 1444 to limit reverse auctions, said that allowing contractors to bid electronically with increasingly lower prices to provide goods and services creates “a race to the bottom” that neither assures quality nor helps channel work to small businesses. “When reverse auctions are used properly, they can save taxpayer dollars,” Hanna said. “Unfortunately, some agencies have used reverse auctions in a manner that evades vigorous competition and contractor protections.”

Use of the tool at agencies such as the Veterans Affairs Department is dominated by a single Vienna, Va.-based firm called FedBid, which has become controversial for its lobbying practices. The Office of Federal Procurement Policy has been collecting data on the practice, but has yet to issue guidance, noted the panel’s ranking member, Rep. Nydia Velazquez, D-N.Y.

Keep reading this article at: http://www.govexec.com/contracting/2015/03/reverse-auctions-are-lawmakers-crosshairs-again/108069

GSA says small businesses benefitting from reverse auctions

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Taxpayers and small businesses are benefitting from the ReverseAuctions program, the General Services Administration said.

In fiscal 2014, 85 percent of auctions awarded through the initiative went to small businesses even though 60 percent was set aside for them, and overall, reverse auctions generated 23 percent savings off standard contract price, an Oct. 21 blog post says.

Those small-business procurements totaled more than $19 million.

Additionally, more than 21 government agencies created 900 auctions and saved more than $6 million, according to the blog.

“Competition fuels savings. GSA ReverseAuction’s fiscal year 2014 performance is a testament to this principle,” wrote Charles Wingate, chief of a branch of the agency’s Federal Acquisitions Services’ Information Technology Commodities Division, on the blog.

ReverseAuctions is an online tool for agencies to use at no additional cost to buy simple commodities and services.

Keep reading this article at: http://www.fiercegovernment.com/story/gsa-small-businesses-benefitting-reverse-auctions/2014-10-22

GSA and Air Force partner to look at savings in GSA contracts

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The General Services Administration and the Air Force established a working group to help identify ways to save money on enterprise-wide contracts, an Aug. 18 GSA blog post says.

The working group will look into which GSA contracts the Air Force can use to cut costs, but still complete its mission, the blog post says.

Those GSA contracting vehicles include strategic sourcing initiatives, reverse auctions, the Global Supply Special Order Program and its One Acquisition Solution for Integrated Services contracts.

Keep reading this article at: http://www.fiercegovernment.com/story/gsa-and-air-force-partner-look-savings-gsa-contracts/2014-08-20

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