fair and open competition | The Contracting Education Academy

August 10, 2020 By cs

HUD IG warns agencies to watch out for bidding fraud

Procurement officials should be watching for signs of bid rigging and collusion, according to a report from the Housing and Urban Development Department inspector general.

The report on anticompetitive bidding is part of the HUD Officer of Inspector General Fraud Bulletin series, which provides guidance on how to spot and deter bad actors seeking to abuse the uncertain circumstances of the pandemic. Though the report does not indicate whether anticompetitive bidding schemes have taken place during the pandemic, it encourages procurement officers to keep their eyes open.

“In a disaster environment, such as the one created by the COVID-19 pandemic, competitive pricing can be impacted by the lack of competition, the scarcity of products, the urgent need to acquire products and services quickly, and the lack of substitute product availability,” the report reads. “Although this does not mean that anticompetitive fraud schemes have occurred, the fluid environment increases the risk that they will.”

Collusion prevents the market from allowing the product with the best quality at the best price from rising to the fore during the bidding process, according to the report. Anticompetitive schemes include practices like submitting “token bids” to make it look as though the winning company beat out the competition, when really it was chosen by colluding parties behind the scenes. Other schemes involve agreements to abstain from bidding or withdraw from the bidding process in order to ensure one company wins.

Keep reading this article at: https://www.nextgov.com/cio-briefing/2020/07/hud-ig-warns-agencies-watch-out-bidding-fraud/167263/

March 3, 2020 By cs

Overstock.com protest could delay GSA commercial e-marketplace pilots until April or beyond

The General Services Administration (GSA) recently responded to an Overstock.com protest of the agency’s commercial e-marketplace solicitation, which could delay pilots until April — assuming revisions aren’t ordered.

Overstock filed its pre-award bid protest with the Government Accountability Office on Jan. 15 arguing some of the solicitation’s terms are ambiguous and restrict competition. The internet retailer further argued GSA didn’t allow sufficient time for companies to respond, according to a person with knowledge of the situation.

Overstock had until Feb. 24 to respond to GSA’s agency report based on anything it learns. The protest itself is covered by a protective order limiting disclosure to lawyers for the private parties.

Section 846 of the 2018 National Defense Authorization Act directed GSA to work with nontraditional government contractors on allowing agencies to purchase up to $250,000 — the simplified acquisition threshold — in commercial items. GSA’s initial pilot will focus on e-marketplaces like Amazon or Overstock, where competition between sellers occurs at the item level.

Keep reading this article at: https://www.fedscoop.com/overstock-gsa-e-marketplace-protest/

May 21, 2018 By AMK

GAO clarifies competition standards for simplified acquisitions

A recent GAO decision has shed light on the question of what an agency must do to adequately promote competition during a simplified acquisition.

There is still no bright line for determining which agency actions meet this threshold. However, the recent decision in Bluehorse Corp., B-415641 et al. (Feb. 6, 2018), established that merely inquiring about a solicitation, without taking further action as recommended by the procuring agency, is not enough to force an agency to include a company in a limited competition.

To promote contracting efficiency, the FAR allows for special simplified acquisition procedures to be applied to certain procurements that do not exceed the regulatory threshold. An agency is not required to use the ordinary full and open competition standards to conduct these simplified acquisition procurements. However, what exactly is required of a federal agency under a simplified acquisition procedure has yet to be clearly defined by the applicable provisions of the FAR and the relevant GAO case law. The FAR requires the agency to “promote competition to the maximum extent practicable” and establishes that this standard can generally be met through the solicitation of at least three sources. See FAR § 13.104.

Keep reading this article at: http://smallgovcon.com/gaobidprotests/gao-clarifies-competition-standards-for-simplified-acquisitions/

March 29, 2016 By AMK

Pentagon opens investigation into contracts with ULA

The internal watchdog for the U.S. Dept. of Defense (DoD) has opened a probe into whether the Pentagon’s contracts with United Launch Alliance (ULA) were properly awarded after a former ULA executive implied the government rigged a recent procurement in favor of the company.

Atlas 5 rocket launch from Cape Canaveral with a U.S. Navy communications satellite in January 2015. Photo credit: ULA — **Atlas 5 rocket launch of a U.S. Navy communications satellite from Cape Canaveral in January 2015.** Photo credit: United Launch Alliance.

The investigation inside the Pentagon is the latest twist in one of the space industry’s leading storylines in recent years — the contentious rivalry between ULA, the sole launch services provider for the U.S. government for nearly a decade, and newcomer SpaceX led by billionaire tycoon Elon Musk.

DoD’s inspector general is looking into assertions made by Brett Tobey, ULA’s former vice president of engineering, during a March 15 seminar at the University of Colorado-Boulder.

Tobey discussed ULA’s decision last year not to bid in a head-to-head competition with SpaceX for the launch of a Global Positioning System navigation satellite. At the time, ULA said it did not submit a proposal for the launch due to restrictions on the use of Russian engines on the Atlas 5 rocket and because it lacked accounting systems required in the structure of the Air Force’s request for bids.

Keep reading this article at: http://spaceflightnow.com/2016/03/24/pentagon-opens-investigation-into-contracts-with-ula/

May 15, 2014 By AMK

Federal contracting’s bright side

Reviewing government contracting trends over time often yields some surprising results. Then again, sometimes it doesn’t.

One result is while the acquisition environment may appear dire in the short run, the overall picture is quite optimistic. For example, while spending increased dramatically during the early 2000s, owing to two of the longest wars in American history, the “severe” drop off in government contracting that started in 2010 leaves spending still almost 40 percent higher than in 2002, adjusted for inflation. Not so bad for the government contractor community!

Of course, contract spending by the Department of Defense dwarfs that of all other agencies combined. Yet, while some agencies have seen significant drops, the overall reduction is mitigated by the huge amount of spending that continues.

Keep reading this article at: http://www.federaltimes.com/article/20140508/BLG06/305080010/Federal-contracting-s-bright-side

Procurement officials should be watching for signs of bid rigging and collusion, according to a report from the Housing and Urban Development Department inspector general.

The General Services Administration (GSA) recently responded to an Overstock.com protest of the agency’s commercial e-marketplace solicitation, which could delay pilots until April — assuming revisions aren’t ordered.

A recent GAO decision has shed light on the question of what an agency must do to adequately promote competition during a simplified acquisition.

The internal watchdog for the U.S. Dept. of Defense (DoD) has opened a probe into whether the Pentagon’s contracts with United Launch Alliance (ULA) were properly awarded after a former ULA executive implied the government rigged a recent procurement in favor of the company.

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