Georgia Tech Procurement Assistance Center

GAO: Agency’s oral advice didn’t amend solicitation

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An agency’s oral advice, given at a pre-proposal conference, did not amend the solicitation or legally bind the agency.

In a recent bid protest decision, the GAO reiterated that offerors rely on oral advice from agencies at their own risk–particularly when the oral advice in question appears to contradict the plain language of the solicitation.

GAO’s decision in Technology and Telecommunications Consultants, Inc., B-415029 (Oct. 16, 2017) involved an Air Force solicitation seeking IT services in support of the Air Command Personnel Recovery Division.  The solicitation was issued as a competitive 8(a) set-aside under the GSA’s 8(a) STARS II GWAC.

The solicitation provided a list of tasks that the awardee wold be expected to perform.  Under one of these tasks, the solicitation stated that the awardee would be expected to provide support to the Air Force Special Operations Command at Hurlburt Field, Florida.  However, the solicitation did not state that offerors were required to propose an employee specifically dedicated to AFSOC support.

Keep reading this article at: http://smallgovcon.com/gaobidprotests/gao-agencys-oral-advice-didnt-amend-solicitation/

GSA blames poor wording for STARS contract snafu

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The General Services Administration is blaming “ambigous” language in an email to bidders on its $10 billion 8(a) contract for giving the mistake impression that it had made contract awards.

The email was intended to give notice that GSA was extending the selection process for the Streamlined Technology Acquisition Resources for Services (STARS) II governmentwide acquisition contract, according to a statement made June 23 by Mary Davie, assistant Federal Acquisition Service commissioner for integrated technology service at GSA.

Davie said the agency intends to award its major governmentwide small-business IT contract by the end of July, although it may have caused some confusion about awards.

GSA asked for a monthlong extension to try to get better prices from the companies bidding on its five-year, $10 billion contract. But because of the language issues some companies believe they had a spot on the IT GWAC and then lost it, Davie said.

A first correspondence, sent June 1, intended to say that officials, who are reviewing bids for STARS II, were continuing their review of submissions. The second letter, sent June 21, gave companies an opportunity for written discussions and called for a final proposal and pricing revision, Davie wrote.

“The second letter did specifically rescind a portion of earlier communications, which appeared to indicate that offerors were considered to be ‘apparently successful.’ This phrasing was ambiguous and should not have been used in these communications,” Davie said.

That second e-mail message, sent to companies, states: “Any part of previous communications from GSA stating or implying that offerors were deemed apparently successful is hereby rescinded.”

GSA was giving the small businesses time to re-examine the prices they offered in their initial bid proposals and adjust the pricing to “amplify its potential to be favorably considered,” the second message also states. Officials included the median price and prices in the 25th percentile as a guide for companies to make their revisions.

GSA had to get the extension to get better prices, Davie said.

“It would not have been possible to ask for more competitive pricing without going back to offerors to ask for an extension, provide them with an opportunity for additional discussions, and then request a final proposal revision,” Davie said.

She added that GSA’s GWAC program office is responding to contractors’ questions as part of the written discussions.

Although GSA’s follow-up message may be awkward, Larry Allen, president of Allen Federal Business Partners, said it’s better than being criticized throughout the life of the contract because of high prices.

About the Author: Matthew Weigelt is acquisition editor for Federal Computer Week – June 24, 2011 at http://washingtontechnology.com/articles/2011/06/24/gsa-stars-ii-gwac-davie-ambiguous.aspx?s=wtdaily_270611

Oops, GSA takes back major contract awards

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General Services Administration officials quickly rescinded an e-mail message
sent to small businesses telling them they had won spots on its major small
business governmentwide IT contract, according to an e-mail message obtained by
Washington Technology and Federal Computer Week.

Officials wrote in a follow-up message, which came a day after the award
notice, that they were checking prices again for the 8(a) Streamlined Technology
Acquisition Resources for Services (STARS) II contract. The message contained an
unsubtle suggestion that bidders might want to offer lower prices.

“Any part of previous communications from GSA stating or implying that
offerors were deemed apparently successful is hereby rescinded,” agency
officials wrote. “This discussion e-mail serves as notice that GSA has made the
decision to hold additional discussions, with an emphasis on pricing.”

STARS II is a 5-year, $10 billion indefinite-delivery, indefinite-quantity
(IDIQ) IT contract. GSA issued the first solicitation for the GWAC in July 2009.
Officials expect an award this month, according to GSA.gov.

GSA officials didn’t immediately respond to requests for comment..

Prices are becoming a central theme in the government as Congress and the
Obama administration attempte to rein in spending.

GSA is giving the 8(a) small businesses time to reexamine the prices they
offered in their initial bids and adjust the pricing to “amplify its potential
to be favorably considered,” according to the follow-up message.

The opportunity for price revisions is not merely a request for an update,
but it will play into GSA’s evaluations. “This is a competitive 8(a) procurement where comparative analysis with other
offerors’ pricing in response to this [Final Proposal Revision] opportunity, and
possibly other price analysis, will occur in order to assess price
reasonableness [or] unreasonableness,” GSA wrote.

In the rescission e-mail message, GSA gave companies pricing averages from
the initial bids as a guide for what’s been offered so far to let companies know
where their prices compare to other bidders.

Observers speculated that someone may have sent out an email too soon, or a
senior management official could have recognized in the 12th hour that the
agency needed look over the prices again.

“Oops,” Larry Allen, president of Allen Federal Business Partners, said about
the initial message.

Either way, the STARS GWAC is “a crown jewel” of GSA and its small business
contracts. It’s next to the GSA’s Schedules in importance to the agency, he
said.

The follow-up rescission message may be awkward, but, Allen said, it’s better
than being criticized throughout the life of the contract because of high
prices.

Nevertheless, the small-business aspect, such as getting a good mix of
various business types, likely would get officials’ attention from the outset
before prices, he said. STARS offers customer agencies an avenue to boost their
small-business contacting percentages, which has helped to make the GWAC
successful.

Across the government though, pricing has become another essential topic in a
time when funding is set to diminish. It’s important enough that the Defense
Department made Shay Assad, a senior procurement policy official, the first
director of defense pricing in May.

That appointment points to the weight of the pricing issue, said Hope Lane, a
government contract consultant at Aronson Consulting.

“The government has to start implementing austerity measures,” said Lane, who
focuses on GSA Schedules.

It isn’t surprising that GSA may have rescinded its award notice in order to
make contractors improve their prices, she said. As agencies hunt for the best
value for their money, GSA’s STARS GWAC has to prove that it can actually save
money, or GSA will lose business to another IDIQ hosted by another agency, she
said.

“IT, in particular, is a competitive market among GWACs,” she said.

This mix-up may cost GSA by way of protests to the contract. Allen said the
likelihood of protests just jumped much higher.

About the Author: Matthew Weigelt is acquisition editor for Federal Computer Week –
June 22, 2011 – http://washingtontechnology.com/Articles/2011/06/22/GSA-rescinds-STARS-II-GWAC-award.aspx?p=1

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