Bid Protests

The Court of Federal Claims recently held that a company could not rely on its affiliate’s Federal Supply Schedule (FSS) contractor status in order to comply with the solicitation. The procurement at issue involved the purchase of glucose test strips from an FSS contract. The Federal Acquisition Regulation (FAR) and the solicitation prohibited entering into the FSS blanket purchase agreement (BPA) with a non-schedule contractor. However, the Defense Health Agency (DHA) awarded the BPA to Abbott Diabetes Care Sales Corp. (Abbott), who did not have the required FSS contract but its affiliate Abbott Laboratories Inc. (ALI) did. Arkray (the protester) argued that Abbott improperly relied on the FSS of its corporate affiliate to provide the strips.

The court had previously remanded the case to the DHA to determine whether Abbott could “properly hold itself out as” having an FSS as required by the solicitation. On remand, the DHA decided to proceed with the BPA award because it concluded Abbott was either acting as ALI’s agent under its FSS contract or the companies were sufficiently closely related enough to allow Abbott to rely on ALI’s FSS contract to satisfy the terms of the solicitation.Continue Reading Offeror Needs Own FSS Contract to be Eligible for FSS BPA

The government contracting industry is extremely competitive, which is not a surprise given the $500+ billion dollars in federal procurement spending up for grabs each year. This competition certainly gives government contractors ample incentive to seek out any useful information that may provide even a small advantage in their procurement activities. Bid protest decisions can be one such source of useful information, often providing valuable insight into the procurement process.

One bid protest decision may focus on a contractor’s mistakes which led to its proposal being rejected from competition, serving as a how-to-guide of sorts showing contractors what not to do. Another bid protest decision may instead highlight errors made by the agency, giving contractors a blueprint of what agency actions/inactions to look out for in their own procurements that may lead to sustainable protests. Whatever the issue, knowledgeable contractors can utilize this information to avoid missteps and properly protect their interests in the potentially lucrative government contracting space.

Another useful aspect of bid protest decisions is that some decisions, while pointing out avoidable defects in proposals, can also shine a light on obscure rules and regulations which may open up contracting avenues not otherwise considered. GAO released a bid protest decision last week which may provide an example of this notion.Continue Reading Learning from Bid Protests: Non-GSA Contract Holders Can Submit Offers Through a Contract Holder—If They Follow the Rules