Notable protest is denied by GAO

If you’ve followed this story since November of last year, the GAO has just announced that Boeing and Lockheed’s protest has been denied for this $80 billion dollar bomber contract.

GAO Denies Boeing’s Protest of Bomber Contract

Defense News

WASHINGTON — The Government Accountability Office has denied Boeing’s protest of the US Air Force’s decision to award Northrop Grumman a contract to build the Long Range Strike Bomber, allowing Northrop to move forward with engineering and development work after a three-month delay. Continue reading

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Are mentor-protégé team awards under greater scrutiny?

SBA 8(a) Mentor-Protégé Joint Ventures Beware: No Guarantee of Exemption from the Rules of Affiliation

BY REGINALD M. JONES ON DECEMBER 15, 2014
The Federal Government Contracts & Procurement Blog

Just because an 8(a) small business and a large business have been approved to participate in the Small Business Administration’s (SBA) 8(a) mentor-protégé program under 13 CFR § 124.520 does not mean that any joint venture between the two companies will be automatically exempt from the rules of affiliation.

In a recent, first of its kind, decision, a joint venture consisting of an approved mentor-protégé team was awarded, and then lost, a multi-million dollar U.S. Army Corps of Engineers (Corps) small business set-aside contract to design and build an Army Reserve Center because the SBA found the joint venture partners to be affiliated under the SBA’s rules of affiliation (13 CFR § 121.103).

After award, the contracting officer questioned whether the joint venture agreement submitted by the joint venture partners satisfied the SBA’s rules and initiated a size protest with the SBA Area Office.  The Area Office determined that the joint venture agreement did not itemize all major equipment, facilities, and other resources to be provided by each party, failed to specify the responsibilities of the parties, and did not show how the joint venturers would meet the minimum performance requirements.

Continue reading the full article…

Protests Up & Sustains Down – A Brief Review Of GAO’s FY 2014 Bid Protest Stats

Following up on our last article about Protest Statistics, this article delves deeper into the numbers reported by the GAO which show a decrease each year in the number of sustained protests.

Article by Derek R. Mullins
Sheppard Mullin Richter & Hampton

On November 18, 2014, the U.S. Government Accountability Office (“GAO”) published its Annual Report to Congress (B-158766, November 18, 2014), which contains the statistics for bid protests filed at GAO in FY 2014. Frankly, it’s a mixed bag – protests are up, sustained protests are down, but the overall “effectiveness rate” (where the agency grants some type of remedy or corrective action for a protestor) remains flat. Because there are many who think that the bid protest process is broken, it might be worth a closer look at some of the statistics to see if bid protests are being abused (as some in Government might claim) or if the process is working.

Here are the statistics taken from the report (along with those for FYs 2010-2013)

PROTEST STATISTICS FY 2014 FY 2013 FY 2012 FY 2011 FY 2010
Cases Filed 2,561 2,429 2,475 2,353 2,299
(up 5%) (down 2%) (up 5%) (up 2%) (up 16%)
Cases Closed 2,458 2,538 2,495 2,292 2,226
Merit (Sustain + Deny) Decisions 556 509 570 417 441
Number of Sustains 72 87 106 67 82
Sustain Rate 13% 17% 18.60% 16% 19%

Read the full article with additional statistics here.