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January 14, 2021 By cs

COFC confirms ‘rule of two’ analysis applies before agency decides to utilize a multiple-award vehicle

The U.S. Court of Federal Claims (COFC) issued a decision on Nov. 30, 2020 that supported the Small Business Administration’s position regarding the Rule of Two analysis requirements for government acquisitions.

The central question surrounding the case was whether the U.S. Army could cancel a Federal Acquisition Regulation (FAR) Part 8 service-disabled veteran-owned small business (SDVOSB) set-aside procurement under the General Services Administration’s Federal Supply Schedule (FSS) and move the requirement to a multiple-award indefinite-delivery, indefinite-quantity (MAIDIQ) contract vehicle that the plaintiff, The Tolliver Group, Inc. (Tolliver), did not hold.

In its protest, Tolliver argued, in part, that the Army’s actions violated the Rule of Two because the agency was required to determine whether two or more small businesses were capable of performing the requirement prior to choosing to put the procurement on the MAIDIQ contract.

The COFC’s decision confirms that the Rule of Two analysis applies before an agency elects to procure a requirement from a multiple-award contract (MAC) vehicle under FAR Part 16.5.

The Rule of Two requires contracting officers to set aside any acquisition over the simplified acquisition threshold for small business participation when there is a reasonable expectation that (1) offers will be obtained from at least two responsible small business concerns and (2) the award will be made at fair market prices.

In Tolliver, the Army argued that a Rule of Two analysis was not required because—according the Small Business Jobs Act, as implemented in 15 U.S.C. § 644(r)—federal agencies have the discretion to issue MACs without first conducting a Rule of Two analysis to determine whether it should be set aside for small businesses.

Keep reading this article at: https://www.jdsupra.com/legalnews/cofc-confirms-rule-of-two-analysis-83418/

Filed Under: Government Contracting News Tagged With: Army, COFC, Court of Federal Claims, FAR, Federal Supply Schedule, FSS, GSA Schedule, IDIQ, MAC, MAIDIQ, multiple award, multiple award contract, rule of two, SBA, SDVOSB, set-aside, simplified acquisition

December 28, 2020 By cs

Vendors, consultants describe an increase in ‘bullying’ tactics by GSA to get lower schedule prices

The General Services Administration’s schedules program brings in more than $38 billion in revenue each year.

It’s one of the most well-known acquisition programs in the country with a reach across more than 100 agencies, state and local governments and the private sector companies. If a company wants to play in the federal market, usually their first step is to get on the schedule.

This is why recent actions by some GSA contracting officers trying to drive down prices, particularly for services, that some say to an unreasonable level is causing so much concern and eliciting words like “bullying” and “holding hostage” from those vendors facing this pressure that has re-emerged over the last four to six months.

Multiple vendors as well as consultants, lawyers and a major GSA-focused trade association representing hundreds of schedule holders say the pendulum has swung too far in how the Federal Acquisition Service is requiring vendors to renegotiate prices, with some being reduced by as much as 40%.

“We are getting our next five years on the schedule and [were] just finishing our 10 year[s] in total. In our entire time on the schedule, we’ve never gotten an economic price adjustment so we have not increased our rates since 2009 or 2010. GSA deemed our rates fair and reasonable at the time,” said one vendor executive, who requested anonymity for fear of reprisal. “When we recently went to modify our schedule contract, the GSA contracting officer said our prices were no longer fair and reasonable and asked us to reduce five of our rates. That just shocked us. We have multiple blanket purchase agreements and other contracts against these rates so for us to back track was unthinkable.”

Keep reading this article at: https://federalnewsnetwork.com/reporters-notebook-jason-miller/2020/12/vendors-consultants-describe-an-increase-in-bullying-tactics-by-gsa-to-get-lower-schedule-prices/

Filed Under: Government Contracting News Tagged With: e-signature, eMod, eOffer, Federal Supply Schedule, GSA, GSA Schedule, MAS, modification, multiple award contract, offer, Schedules

December 3, 2020 By cs

Contractor agrees to pay $18.98 million for alleged overcharges and use of unqualified labor

Cognosante LLC has agreed to pay the United States $18,987,789 to resolve allegations that it violated the False Claims Act by using unqualified labor and overcharging the United States for services provided to government agencies under two General Services Administration (GSA) contracts, the Justice Department. 

Cognosante, which is headquartered in Falls Church, Virginia, provides health care and IT services and solutions to federal agencies.

GSA’s Multiple Award Schedule (MAS) contracts allow the federal government to leverage its buying power to achieve favorable pricing.  Under MAS contracts, contractors negotiate with GSA to set maximum prices for goods and services subsequently ordered by agencies across the federal government.  These contracts provide streamlined access to the federal marketplace.

The settlement resolves allegations that Cognosante overcharged the United States for services performed under two GSA MAS contracts, including by providing false information concerning Cognosante’s commercial discounting practices during contract negotiations.  It also resolves allegations that Cognosante charged the United States for labor that failed to meet the qualifications in one of the contracts.

Cognosante investigated and disclosed to the United States the contractual violations resolved in the settlement.  It received credit for its disclosure and cooperation.

The settlement was the result of a joint investigation by the GSA OIG, the U.S. Attorney’s Office for the District of Columbia, and the Civil Division’s Commercial Litigation Branch.  The claims resolved by the settlement agreement are allegations only, and there has been no determination of liability.    

Source: https://www.justice.gov/opa/pr/federal-contractor-agrees-pay-1898-million-alleged-false-claims-act-caused-overcharges-and

Filed Under: Government Contracting News Tagged With: abuse, DOJ, false claims, False Claims Act, false information, fraud, GSA, IG, Justice Dept., MAS, multiple award, multiple award contract, OIG, overcharge, settlement, unqualified labor

November 27, 2020 By cs

CIA awards secret multibillion-dollar cloud contract

The Central Intelligence Agency (CIA) has awarded its long-awaited Commercial Cloud Enterprise, or C2E, contract to five companies — Amazon Web Services, Microsoft, Google, Oracle and IBM.

Under the C2E contract vehicle, the companies will compete for specific task orders issued by the CIA on behalf of itself and the 16 other agencies that comprise the intelligence community. The CIA did not disclose the expected value of the contract to Nextgov, but procurement documents issued by the agency in 2019 indicated it could be worth “tens of billions” of dollars over the next decade and a half.

“We are excited to work with the multiple industry partners awarded the Intelligence Community (IC) Commercial Cloud Enterprise (C2E) Cloud Service Provider (CSP) contract and look forward to utilizing, alongside our IC colleagues, the expanded cloud capabilities resulting from this diversified partnership,” CIA spokeswoman Nicole de Haay told Nextgov Friday.

C2E represents the CIA’s next step in cloud computing, having awarded an existing contract — dubbed C2S  —to Amazon Web Services in 2013 to provide a variety of cloud computing services for the CIA and intelligence agencies, including the National Security Agency and FBI.

Keep reading this article at: https://www.nextgov.com/it-modernization/2020/11/exclusive-cia-awards-secret-multibillion-dollar-cloud-contract/170227/

Filed Under: Government Contracting News Tagged With: C2E, C2S, CIA, cloud, cloud computing, FBI, intelligence community, multiple award contract, National Security Agency

November 10, 2020 By cs

GSA preparing switch to e-signature for Multiple Award Schedule offers and mods

Contract holders will also see new security measures being implemented in the near future for eOffer and eMod.

In less than one month, contract holders on the General Services Administration’s Multiple Award Schedule will be able to sign offers and contract modifications digitally using DocuSign. The move will come ahead of more changes that will bring additional security to two contract management portals.

On November 30, GSA will be turning on the ability to electronically sign documents in eOffer and eMod, which will become the standard method going forward. But the transition means contract holders need to prepare.

“This change to DocuSign aligns with GSA’s overall IT modernization efforts to support security and provide a solution that is legally recognized internationally,” GSA officials wrote in a post on Interact.

The post notes there will be some downtime during the transition, meaning vendors will “not be able to submit new offers and requests for modifications in eOffer and eMod” from November 25 through 29. That said, vendors will still be able to start the process for new offers and modifications—just not submit them—and will be able to work on tasks already in process.

Keep reading this article at: https://www.nextgov.com/it-modernization/2020/10/gsa-preparing-switch-esignature-multiple-award-schedule-offers-and-modifications/169653/

Filed Under: Government Contracting News Tagged With: e-signature, eOffer, Federal Supply Schedule, GSA, GSA Schedule, MAS, modification, multiple award contract, offer, Schedules

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