Shrinking budgets, acquisition workforce mistakes drive bid protests, experts say

Data from the Government Accountability Office clearly show an upward trend in the number of bid protests, and procurement analysts told BNA there several explanations for the increase.

Chief among these, they said, are smaller federal budgets that allow for fewer overall contracts, along with a shrinking, less skilled acquisition workforce prone to mistakes.

Total federal spending on contracts fell to $516.8 billion in FY 2012 from $538.6 billion in FY 2011, according to USASpending.gov. Spending rose only 19.6 percent from $432.1 billion in FY 2006.

At the same time, contractors filed 2,475 protests, cost claims, and requests for reconsideration with GAO in fiscal year 2012, a five percent increase from FY 2011 and a 94 percent increase from the 1,274 protests filed in FY 2006.

Keep reading this article at: http://www.bna.com/shrinking-budgets-acquisition-n17179873902/

Bid protests are worth their costs, former OFPP chief says

Contractors on the losing side of a competitive bidding who protest to the Government Accountability Office do not hurt or game the procurement system as some critics allege, says a forthcoming study.

The percentage of contracts that spark protests is also comparatively small, while the overall impact of the protest procedure is healthy, according to Dan Gordon, the former Obama administration head of the Office of Federal Procurement Policy and now associate dean for government procurement law studies at George Washington University Law School.

In an article set for publication this spring in the Public Contract Law Journal, a copy of which was provided to Government Executive, Gordon wrote that “there exist a number of misperceptions concerning bid protest statistics that deserve attention, because these misperceptions can taint judgments about the benefits and costs of protests. In particular, even people quite familiar with the federal acquisition system often believe that protests are more common than they really are, and they believe, inaccurately, that protesters use the protest process as a business tactic to obtain contracts from the government.”

Keep reading this article at: http://www.govexec.com/contracting/2013/03/bid-protests-are-worth-their-costs-ex-procurement-chief-says/61827/?oref=govexec_today_nl

U.S. acquisition mistakes put Afghan air force’s new fleet at risk

It took an extra year and left the Air Force’s acquisition team with egg on its face, but Sierra Nevada Corp. still ended up with the $427 million contract to provide 20 light support planes to the Afghan air force.

The Air Force had to cancel the initial contract in 2011 awarded to Sierra Nevada Corp. after Beechcraft Corp. protested the award. Following the protest, the Air Force discovered mistakes made in the paper work throughout the acquisition process forcing the Pentagon to re-open the competition.

Air Force officials still chose the Super Tucano offered by Sierra Nevada Corp. and Brazil’s Embraer for a contract that could be worth up to $900 million over the life of the contract.

Keep reading this article at: http://www.dodbuzz.com/2013/02/28/u-s-acquisition-mistakes-put-afghan-air-forces-new-fleet-at-risk/

Justice computer ID contract snagged by second protest

A contested Office of Justice Programs contract for federally mandated identity verification services has been hit with a second protest from the same vendor, agency officials told Nextgov.

The protestor, NikSoft, in fall 2011, already had challenged the award to competitor LS3 Technologies for software and labor to establish the required Federal Identity, Credential and Access Management program. FICAM is a governmentwide strategy for securing the computer logins and smartcard credentials of federal employees.

Keep reading this article at: http://www.nextgov.com/cybersecurity/2012/06/justice-computer-id-contract-snagged-second-protest/56068/.

GAO rejects protest of $70 million IT contract at CDC

The Comptroller General’s Office rejected arguments from Unisys Corp. on May 7, 2012 that the Centers for Disease Control and Prevention tricked it into overbidding on a $70 million contract to combine the agency’s legacy information technology systems.

Unisys argued CDC officials misled the company into raising its proposed price tag from $61 million to $86 million to remedy staffing insufficiencies the agency pointed out in its original bid, according to the Comptroller General’s decision.

Keep reading this article at http://www.nextgov.com/cio-briefing/2012/05/gao-rejects-protest-70-million-it-contract-cdc/55640/.

4 protest $6.9B Air Force IT awards

Four companies have filed protests with the Government Accountability Office after they failed to win spots on the $6.9 billion NetCents II contract.

The Air Force in early April picked nine companies to provide commercial IT products under its NetCents II umbrella. Other portions of the $24.2 billion ceiling program are still in the source selection process, including awards to small and large businesses.

Details on the protestors and contract award winners are at: http://washingtontechnology.com/articles/2012/04/30/netcents-bid-protests.aspx?s=wtdaily_010512.

Lockheed cries foul over Northrop’s win of shipboard network contract

Lockheed Martin filed a bid protest this week over Northrop Grumman winning the Navy’s Consolidated Afloat Networks Enterprise Services contract worth up to $637.8 million.

Known as CANES, the contract is being used to outfit up to 54 ships with new computer networks. Eventually, the Navy wants new networks on 286 ships and 60-plus submarines. Other competitions will be held for work on those vessels.

But Northrop Grumman won the first contract out of the gate and will be working on guided-missile destroyers and multi-purpose amphibious assault ships, the Defense Department said. The companies were locked in a one-on-one battle for the first contract.

Lockheed Martin spokesman Keith Little said in a statement that the company protests awards “only when we believe flaws in the evaluation process preclude consideration of the best solution for the customer, as is the case with our proposal for the Navy’s Consolidated Afloat Networks and Enterprise Services program.”

Northrop Grumman spokeswoman Sudi Bruni said that the company’s proposal is the best value for the Navy. “We stand ready to help the Navy get this critical system quickly to the warfighters. We are disappointed a protest was filed.”

Lockheed filed the protest on Feb. 13 and the Government Accountability Office docket says a decision is due May 23.

About the Author: Nick Wakeman is the editor-in-chief of Washington Technology.  This article was published on Feb. 16, 2012 at http://washingtontechnology.com/articles/2012/02/16/lockheed-canes-protest.aspx?s=wtdaily_170212.

Bid protests on steady five-year climb

Bid protests filed in fiscal year 2011 continued their steady five-year climb, according to new data from the Government Accountability Office.

GAO handled 2,353 cases in fiscal 2011, compared with 2,299 in 2010 and 1,411 in 2007.

The number of protests that were sustained, however, dropped to 67 compared with 82 in 2010. The number of sustained protests was the lowest in 2009, when only 57 of 1,989 cases were sustained. In 2007, 91 cases were sustained out of 1,411 that were filed.

In its annual report to Congress, GAO said only 147 cases filed in 2011 were from GAO’s expanded bid protest jurisdiction over task orders.

2011 had the lowest sustainment rate at 16 percent for the five years covered in the GAO report. 2007 has the highest with 27 percent.

About the Author: Nick Wakeman is the editor-in-chief of Washington Technology.  Published Nov. 18, 2011 at http://washingtontechnology.com/articles/2011/11/18/2011-bid-protests.aspx?s=wtdaily_211111.

VA made mandatory an inadequate national contracting management system

The Veterans Affairs Department rolled out an electronic contract management system in its national acquisition center without first ensuring the system adequately supports contracting operations, says the VA’s office of inspector general.

The system, known as eCMS, “lacks some of the functionality required to manage and provide contract information,” the Sept. 2 report says.

VA national contracting officers also use another system, known even more prosaically than eCMS as “Contact Management,” and data from both systems is required to gain a complete acquisition solution, the national acquisition center director told auditors.

The office of acquisition and logistics (within which the national acquisition center resides) is developing an eCMS upgrade that includes integrating functions from the other system into it, but its rollout has already been delayed from September 2010 to August 2011, the report adds.

Auditors also say a review of contracts in the eCMS pulled up records with missing information. For example, the electronic file for a $19 million contract for pharmaceuticals had no acquisition plan, no evidence of market research, nor the determination of price reasonableness.

Auditors also chide the national acquisition office for taking longer than an allotted 130 days to award contracts. A sample of contracts examined by auditors found an average time to award of 422 days, with one contract requiring 1,143 days.

The acquisition director told auditors each contract delay had a legitimate reason behind it, such as a vendor protest, a contract review board decision, or staff reassignment. Auditors say that staff reassignment, at least, is a factor not outside of the control of the director, and add that contracting officers are “not being held accountable for the untimely awarding of contracts in our sample.”

– by D. Perera – Fierce Governmemt IT -  Sept. 4 2011 – http://www.fiercegovernment.com/story/va-made-mandatory-inadequate-national-contracting-management-system/2011-09-04

For more:
- download the VA OIG report, 10-01744-265 (.pdf)

Related Articles:
Veteran-preferred contracting programs rife with fraud, say VA OIG, GAO
FAA acquisition workforce plans insufficient, says OIG
New guidance for IT program and acquisition manager positions

Contractor protest derails work on Army ground combat vehicle

The Army’s $7.6 billion project to develop an advanced, high-tech replacement for the Bradley Fighting Vehicle hit a speed bump Friday when SAIC filed a protest with the Government Accountability Office against the service’s Aug. 18 award of technology development contracts for the new ground combat vehicle to BAE Systems and General Dynamics. The contracts have a combined value of $878 million.

When the Army TACOM Life-Cycle Management Command (formerly the Tank-Automotive and Armaments Command) released the procurement for the ground combat vehicle in November 2010 it said, “The Army anticipates awarding up to three contracts for the technology development phase.” But, in a surprise move, the service tapped only BAE and General Dynamics.

SAIC partnered with Boeing Co. and two German companies, Krauss-Maffei Wegmann and Rheinmetall Defence, which developed the Puma infantry fighting vehicle for the German army. The Puma went into production in 2009 and serves as the basic design for the group’s ground combat vehicle.

Vernon Guidry, an SAIC spokesman, said the company filed its protest because, “we believe the government relied on evaluation criteria outside its published request for proposal. We also believe several aspects of the bid may have been discounted because of a lack of familiarity with [the design's] non-American origins.”

Lt. Col. David Gercken, an Army spokesman, said the service issued a stop-work order to BAE and General Dynamics until the protest is resolved. Ralph White, managing associate general counsel for procurement law at GAO, said a decision on the protest is due by Dec. 5.

The Army needs a new armored troop carrier able to withstand improvised bombs like those that have caused more than 60 percent of the troop casualties in Iraq and Afghanistan. It also wants a vehicle capable of carrying a nine-man infantry squad. Those requirements have pushed its weight into the 60-ton range, said Mark Signorelli, vice president and general manager for weapons systems at BAE.

Despite this hefty tonnage — just eight tons less than the Abrams tank — Signorelli said BAE plans to take the Toyota Prius approach to developing its version of the ground combat vehicle. He said BAE’s vehicle will use hybrid-electric drive technology and include a battery pack that will supplement power from a diesel engine.

The design of the BAE ground combat vehicle, Signorelli said, is a proven, similar to diesel electric locomotives, with the engine serving as a generator, applying power directly to traction motors that power the tracks.

Robert Sorge, senior director for the ground combat vehicle at General Dynamics, said his company considered a hybrid vehicle, but given the weight, a hybrid design “did not make a lot of sense . . . It’s not practical and is more expensive.”

General Dynamics said it will stick with proven diesel engine technology and drive trains, he said.

The Army also wants developers to provide a vehicle with built-in command-and-control systems as well as optical and radar sensors that can provide a 360-degree field of view to the crew, both BAE and General Dynamics executives said.

Communications system for the ground combat vehicle will be built around a network integration kit supplied by the Army, Sorge said. This kit includes Boeing’s Joint Tactical Radio System Ground Mobile Radio, the Army’s Force XXI Battle Command Brigade and Below system that tracks and displays friendly and hostile forces on the battlefield, and a computer system that ties displays and keyboards into the network.

The Army has a tight, seven-year schedule to develop, test and then field 1,800 ground combat vehicles. An Army source said he doubted the SAIC protest would put much of a crimp in the schedule.

The service has fielded more than 6,700 Bradley Fighting Vehicles since it was first introduced in 1981.

– by Bob Brewin – NextGov – 08/30/11 – at http://www.nextgov.com/nextgov/ng_20110830_2080.php?oref=rss?zone=NGtoday