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napolik

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Posts posted by napolik

  1. Quote

    (1) Do you think that Brooks Act qualifications-based procedures followed by one-on-one negotiations with the selectee might be less costly, less time-consuming, and produce better contracts than FAR Part 15 proposal-based source selection procedures?

    My answer is “Yes” assuming agencies’ management are willing to use the BA procedures and assuming the agencies’ workforces are trained to use them.

    I never negotiated a contract using 36.6 procedures, but I used variants when using FAR 8.4 procedures:

    Quote

    The agency will assess the résumés, experience, past performance, and the price of quotes in accordance with FAR Subpart 8.4. Non-price factors, when combined, are significantly more important than price. After this assessment, the contracting officer may award a contract to the contractor he or she determines to represent the best value, or may obtain additional information from and negotiate with that contractor to improve the terms of the deal reflected in its quote. If the contracting officer is unable to negotiate a favorable deal with the contractor, he or she reserves the right to negotiate and reach agreement with another firm submitting a quote that was not assessed initially to be the best. This process will continue until a contract has been reached or until all those firms submitting a quote have been considered. If agreement on a deal cannot be reached with any of the firms, negotiations may be reopened with all firms or the solicitation may be canceled.

    I am not sure that many agencies would use them because the various agencies’ workforces are trained merely to apply procedures to implement a process, not to achieve results. It is my unscientifically proven opinion that the majority of agencies do not seek to negotiate the substance. They seek to conduct only FAR 15.3 type exchanges pertinent to proposal weaknesses and deficiencies.

    Quote

    (2) If your answer to the first question is yes, then what problems would an agency face in making the switch from Part 15 to Brooks Act procedures?

    The biggest problems would arise from the unwillingness and inability of agencies’ managements, supervisors and contract specialists to identify and negotiate good deals. Most agencies would prefer to avoid the exercise of discretion and to expand the scope of automated procurement systems so that they could evaluate proposals, identify compliant proposals, conduct exchanges and make source selections.

  2. I always preferred hard copies anyhow!

    Quote

    Perhaps had the GAO been told the actual number of offerors which had e-mailed proposals rejected, it would have reached a different conclusion. Or it might have done so, had it been informed that at least one e-mail sent by [Offeror I] was not accounted for, see supra note 14, or that there was no record of any e-mail sent by [Offeror O] to the e-mail address designated in the Solicitation. On this last point, the Court is particularly concerned that the GAO, which does not recognize the extension of the Government Control exception to cover e-mailed proposals, see Sea Box, Inc., 2002 WL 31445297, at *2, was not told that the agency employed this exception to accept the [Offeror O] proposal. The GAO found FAST’s proposal “was never received at the agency email address designated for receipt of proposals,” FAST, 2014 WL 7660997, at *2; AR at 757, yet the same was true of [Offeror O’s] proposal. Knowledge that an exception was made for [Offeror O] may have resulted in a different outcome before the GAO. Cf. Philips Healthcare, 2012 WL 3611711, at *4 (explaining that one of the purposes of the “late is late” rule is that it “ensures equal treatment of all offerors”). Although not necessary for FAST to prevail, the Court concludes that the agency’s failure to disclose to the GAO the full extent of problems encountered by offerors in e-mailing their proposals, and its application of the Government Control exception to the benefit of another offeror, was to plaintiff ’s prejudice by preventing a fully informed consideration of the protest grounds raised by FAST.  (Federal Acquisition Services Team, LLC v. U. S., No. 15-78C, February 16, 2016)  (pdf)

     

  3. FAR 12.102, Applicability, states that

    Quote

    (a) This part shall be used for the acquisition of supplies or services that meet the definition of commercial items at 2.101.

    (b) Contracting officers shall use the policies in this part in conjunction with the policies and procedures for solicitation, evaluation and award prescribed in Part 13, Simplified Acquisition Procedures; Part 14, Sealed Bidding; or Part 15, Contracting by Negotiation, as appropriate for the particular acquisition.

    Unquote

    FAR 12.207, Contract Type, states at (b) (1) (ii) (C) (3) that

    Quote

    When making a change that modifies the general scope of—

    (i) A contract, follow the procedures at 6.303;

    (ii) An order issued under the Federal Supply Schedules, follow the procedures at 8.405-6; or

    (iii) An order issued under multiple award task and delivery order contracts, follow the procedures at 16.505(b)(2).

    Unquote

    Question: Given FAR 12.102(b), why does FAR Part 12 address issues involving FAR 8.4 and 16.5?

  4. When evaluating proposals for the award of multiple award contracts, it is common to use “sample” task orders to obtain technical and price information you will use to make source selections. Afterwards, the agency issues the solicitation and evaluated proposals for the first “real” task order. There is no reason why you cannot use the evaluation of first “real” task order as the basis for making your multiple award contract source selections and for issuing your first task order.

     In your Section M, tell the potential offerors

    1. You will award multiple award contracts based upon your evaluation of technical and price proposals for the first task order to be issued under the contracts.

    2. You will also award the first task order under the multiple award contracts at the same time you award the contracts.

  5. Monsieur Edwards has addressed this issue in a WIFCON blog post here:

    http://www.wifcon.com/anal/analcomproc.htm.

    He offers much sound advice. Here is one extract:

    Quote

    Do not follow the FAR Part 15 Process Model when making simplified acquisitions. When using simplified acquisition procedures to buy complex supplies or services worth in excess of $25,000 and for which a synopsis must be published, and if planning to ask for more information than just a price quote, either: (a) select one firm for one-on-one negotiations based on experience, past performance and a price quote and then negotiate to agreement on details, or (b ) narrow the competitive field of competitors on the basis of experience, past performance and a price quote before asking for more detailed proposal information, providing a specification or statement of work and clauses for price quote development by fax or email. Do not use FAR Part 15 terminology or refer to FAR Part 15 in the RFQ. Do not establish a competitive range, negotiate with more than one firm at a time, or solicit revised quotes or offers from more than one competitor.

    Unquote

  6. You can evaluate the -8 option in several ways: 1) you can state that the final -9 option period will be multiplied by 50% and that the result will be added to the valuated prices for the base period and all -9 option periods; 2) you can ask the contractor to propose prices for the six months following the end of the last -9 option period and add them to the evaluated price for the base and -9 option periods; or 3) you can get prices for multiple 6 month periods corresponding to the end of the base period and each -9 options.

    I like option 1 as a) GAO will allow it, 2) it is easy, and 3) it probably reflects the most beneficial outcome for the government in terms of price, performance and minimal admin burden.

  7. "In times long past, this agency was the home of a mighty, noble race of beings who called themselves the 1102s. Ethically and technologically they were a million years ahead of humankind, for in unlocking the mysteries of nature they had conquered even their baser selves, and when in the course of eons they had abolished sickness and insanity, crime and all injustice, they turned, still in high benevolence, upwards towards space. Then, having reached the heights, this all-but-divine race perished in a single night, and nothing was preserved above ground."

    SPS preserves a lot:

    212.301 Solicitation provisions and contract clauses for the acquisition of commercial items.

    See DoD Class Deviation 2013-O0019, Commercial Item Omnibus Clause for Acquisitions Using the Standard Procurement System, issued September 25, 2013. This class deviation allows the contracting officer to use the SPS clause logic capability to automatically select the clauses that are applicable to the specific solicitation and contract. The contracting officer shall ensure that the deviation clause is incorporated into these solicitations and contracts because the deviation clause fulfills the statutory requirements on auditing and subcontract clauses applicable to commercial items. The deviation also authorizes adjustments to the deviation clause required by future changes to the clause at 52.212-5 that are published in the FAR. This deviation is effective for five years, or until otherwise rescinded.

  8. Unfortunately, there seems to be an inverse correlation between keystrokes and professional knowledge. There was a time when one had to read the ASPR, DAR or FAR to create solicitation and contract documents. Reading the regulations to create the documents caused one to become knowledgeable in the provisions and clauses. But, that was last millennium. Now the automated procurement systems relieve 1102s of the obligation and benefits of reading the regulations.

    Once a Luddite, always a Luddite.

  9. Don,

    The GAO considers 5 things when reviewing protests involving price realism:

    1. If the solicitation doesn't provide for an eval of realism, the agency is not required to do so.

    2. If the solicitation doesn't provide for the eval of realism, the agency must not evaluate realism.

    3) If the solicitation provides for the evaluation of the realism of proposed prices, the agency must perform the analysis. Even if the solicitation doesn't use the term "price realism", an analysis is required if (1) the agency will consider if the proposed price is adequate/too low for the proposed tech approach and (2) the solicitation reserves the right to reject proposals or assess risk if the price is too low.

    4. If FAR 52.222-46 requires agencies to assess the realism of professional compensation plans, it must do so.

    5. If the solicitation provides for the evaluation of price realism, the agency has the discretion as to the manner and depth of the realism eval.

    See the Ralph White slides on realism here: https://www.acc.com/chapters/ncr/upload/Slides-BidProtest2015.pdf.

    I would require that the realism evaluation be stated explicitly in Section M, or its non-UCF equivalent. And, the section M factors must correspond to Section L submission requirements.

    I do not like solicitations that diffuse factors throughout the solicitation, particularly when they are buried in a clause incorporated by reference..

    I wonder how many small businesses would read FAR clauses incorporated by reference and discover an eval factor in 52.222-46?

    XXXXXXXXXXXXXXXXXXXXX

    PS:

    Apparently, small businesses are not the only organizations susceptible to overlooking clauses incorporated by reference. It seems the Army did too, in at least one instance.

    Look at the first complete paragraph on page 26 of this COFC decision:

    http://www.uscfc.uscourts.gov/sites/default/files/opinions/ALLEGRA.CRASSOCIATES011812.pdf.

  10. As I remember this thread, there is no mention in Section M of how the labor rate data will be assessed.

    What evaluation factor will be used to assess the compensation plan?

    Will FAR 22.103 be cited in a section M factor? The last sentence of 22.103 says : "Plans indicating unrealistically low professional employee compensation may be assessed adversely as one of the factors considered in making an award."

    The last paragraph of FAR 52.222-46 says: "Failure to comply with these provisions may constitute sufficient cause to justify rejection of a proposal."

    I think a section M factor is needed, but the GAO disagrees with me "In the context of a fixed-price labor hour contract...".

    Quote

    As discussed above, FAR clause 52.222-46 states that the agency will evaluate an offeror’s proposed compensation plan "to assure that it reflects a sound management approach and understanding of the contract requirements," and further states that the evaluation "will include an assessment of the offeror’s ability to provide uninterrupted high-quality work." FAR § 52.222-46(a). As relevant here, the clause also states that the compensation plan "will be considered in terms of its impact upon recruiting and retention, its realism, and its consistency with a total plan for compensation." Id. In the context of a fixed-price labor hour contract, our Office has held that this FAR clause anticipates an evaluation of whether an awardee understands the contract requirements, and has proposed a compensation plan appropriate for those requirements--in effect, a price realism evaluation regarding an offeror’s proposed compensation. See Apptis Inc., B-403249, B-403249.3, Sept. 30, 2010, 2010 CPD ¶ 237 at 9. The depth of an agency’s price realism analysis is a matter within the sound exercise of the agency’s discretion. Navistar Defense, LLC; BAE Sys., Tactical Vehicles Sys. LP, B-401865 et al., Dec. 14, 2009, 2009 CPD ¶ 258 at 17.

    Unquote

    Portfolio Management Solutions, LLC; Competitive Choice, Inc., B-408846; B-408846.4, December 12, 2013.

    Live and learn!

  11. If the CO thinks the offeror's proposed FFP rates are too low, s/he can verify that the offeror fully understands the requirements.

    I cannot understand why the CO is asking for detailed rate info in a competitive environment. Assuming competition exists, price reasonableness is an easy determination to make. If the CO is concerned about excessively low rates, then different issues arise.

    Typically, requests for price breakdowns in competitive procurements are associated with price realism assessments. If price realism is the CO's concern, he or she needs to announce a price realism eval factor. Absent a factor for price realism (i.e. assessment of the correlation between proposed rates/ proposed price and proposed personnel/ materials/ technical approach), the CO's only way to deal with low prices would be a determination of non-responsibility. This can be thwarted by a firm "buying in" or by a small business viewed favorably by the SBA.

    Take a look at this recent GAO decision: Lily Timber Services, B-411435.2, August 5, 2015. http://www.gao.gov/products/B-411435.2#mt=e-report.

  12. I am unaware of any collection / analysis of solely SBA OHA decisions.

    Try looking at contract lawyers desk books that address GAO, COFC, BCA and SBA OHA decisions. Here is an example:

    https://www.jagcnet.army.mil/ContractLawDocLib.

    For specific issues, you can go to the SBA OHA site here: https://www.sba.gov/oha/decisions.

    Or, you can use google after inserting the letters SBA OHA at the beginning of your search description.

  13. While I support the renewed “professionalization” of the contracting workforce, I am pessimistic that the workforce’s knowledge of law, regulation and market environment will improve. If anything happens to workforce knowledge, it will decline. This is due to the transfer of non-professional workload to the professional workforce.

    If I recall correctly, the professionalization of the contracting workforce began in the early 90s with the establishment of an educational requirement – a bachelor’s degree with 24 credit hours of business or business related subjects. Unfortunately, this laudable event was accompanied by other events that have undercut the effort to improve the professionalism of 1102s.

    First, there was the introduction of automated procurement systems (APS) driven, not by clerk typists (1106s), but by contract specialists. Increasingly, the contract specialists spend more time and effort learning how to create documents and to enter data in the APS than learning the substance of their profession.

    Currently, I work in a space adjacent to a staff of 1102s whose raison d’etre is an APS. All day long, 1102s line up to get help with the application of the APS to their specific procurements. If only they spent as much time reading the SOWs, the regs, the GAO and COFC decisions, and materials on the market they are seeking to use.

    Prior to my current experience, I cannot count the number of times I, or a colleague, was told a particular procurement strategy or tactic cannot be accomplished because SPS or PRISM won’t allow it.

    Because of the introduction of the APS, I believe contract specialists devote more time to learning their APS than to learning the substance of their “profession”.

    Closely related to the impact of APS is the impact of FPDS. FPDS entries and corrections are accomplished by 1102s. How many hours do contract specialists spend on the FPDS? Why can't 1106s do this?

    Next, while the procurement leaders were celebrating the new educational standards for 1102s, they were also eliminating 1105s, procurement agents. The work on small purchases – now simplified acquisitions – was transferred from 1105s to 1102s. I guarantee you that much/ most of the time 1102s spent/ spend on this new work was/ is spent on forcing the small purchases into the office APS.

    Until the procurement hierarchy demonstrates clearly the importance of procurement knowledge vice knowledge of APS, FPDS and small purchase, the test methodology is irrelevant. This demonstration will be the reduction or elimination of time 1102s spend on the creation of APS, FPDS and small purchase.

    Restore document preparation and reporting tasks to 1106s; return small purchases to 1105s.

  14. I think you better get your small business specialist involved. See the following excerpt from the CFR:

    13 CFR 125.2 - What are SBA's and the procuring agency's responsibilities when providing contracting assistance to small businesses?

    § 125.2 What are SBA's and the procuring agency's responsibilities when providing contracting assistance to small businesses?

    (a) General. The objective of the SBA's contracting programs is to assist small business concerns, including 8(a) BD Participants, HUBZone small business concerns, Service Disabled Veteran-Owned Small Business Concerns, Women-Owned Small Businesses and Economically Disadvantaged Women-Owned Small Businesses, in obtaining a fair share of Federal Government prime contracts, subcontracts, orders, and property sales. Therefore, these regulations apply to all types of Federal Government contracts, including Multiple Award Contracts, and contracts for architectural and engineering services, research, development, test and evaluation. Small business concerns must receive any award (including orders, and orders placed against Multiple Award Contracts) or contract, part of any such award or contract, and any contract for the sale of Government property, regardless of the place of performance, which SBA and the procuring or disposal agency determine to be in the interest of:

    (1) Maintaining or mobilizing the Nation's full productive capacity;

    (2) War or national defense programs;

    (3) Assuring that a fair proportion of the total purchases and contracts for property, services and construction for the Government in each industry category are placed with small business concerns; or

    (4) Assuring that a fair proportion of the total sales of Government property is made to small business concerns.

    ( b ) SBA's responsibilities in the acquisition planning process.

    (1) SBA Procurement Center Representative (PCR) Responsibilities.

    (i) PCR Review.

    (A) SBA has PCRs who are generally located at Federal agencies and buying activities that have major contracting programs. At the SBA's discretion, PCRs will review all acquisitions that are not set-aside or reserved for small businesses above or below the Simplified Acquisition Threshold, to determine whether a set-aside or sole source award to a small business under one of SBA's programs is appropriate and to identify alternative strategies to maximize the participation of small businesses in the procurement. This review includes acquisitions that are Multiple Award Contracts where the agency has not set-aside all or part of the acquisition or reserved the acquisition for small businesses. It also includes acquisitions where the agency has not set-aside orders placed against Multiple Award Contracts for small business concerns.

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