bid protests briefing

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www.smithlaw.com ©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P. 2012 FEDCON Conference Bid Protests Presented By: Peter J. Marino Jackson Wyatt Moore, Jr. Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, LLP (919) 821-6688 [email protected] [email protected]

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FEDCON Summit

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Page 1: Bid Protests Briefing

www.smithlaw.com

©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.

2012 FEDCON Conference

Bid Protests

Presented By:

Peter J. Marino

Jackson Wyatt Moore, Jr.

Smith, Anderson, Blount, Dorsett,

Mitchell & Jernigan, LLP

(919) 821-6688

[email protected]

[email protected]

Page 2: Bid Protests Briefing

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©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.

Bid Protest Trends - GAO

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Actions 2011 2010 2009 2008 2007

Cases Filed 2,353 2,269 1,989 1,652 1,411

Merit Decisions 417 441 335 291 335

Sustain Rate 16% 19% 18% 21% 27%

Effectiveness Rate 42% 42% 45% 42% 38%

Source: Government Accountability Office:

http://www.gao.gov/assets/590/586259.pdf

Page 3: Bid Protests Briefing

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©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.

The What? “Bid Protest” Defined

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“[A] [written] action by an interested party objecting to

a solicitation by a Federal agency for bids or

proposals for a proposed contract or to a proposed

award or the award of a contract or any alleged

violation of statute or regulation in connection with a

procurement or a proposed procurement.”

28 U.S.C. §1491(b)(1); FAR 33.101.

Page 4: Bid Protests Briefing

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©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P. 4

Who Can Protest? An interested party…

An interested party is an “actual or prospective

bidder or offeror whose direct economic interest

would be affected by the award of the contract or

failure to award the contract.”

31 U.S.C. § 3551(2); 4 C.F.R. § 21.

Page 5: Bid Protests Briefing

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©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P. 5

. . . A bidder….

• Did you submit a bid?

• Subcontractor to a disappointed bidder cannot protest.

Eagle Design & Management, Inc., No. 04-1200C

(Court of Federal Claims, 2004)

• Spin-offs? ITT, B-406405 (2012)

• Joint Ventures?

Page 6: Bid Protests Briefing

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©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P. 6

… and a Potential Winner

• Protester must show it had a substantial chance of

receiving the award but for the agency’s error in the

procurement process. Rex Service Corp. v. United

States, 448 F.3d 1305 (Fed. Cir. 2006)

• Were you eligible to win? Pro South Encon, B-405267,

B-405268 (2011).

• “Next in Line”? Earth Resources Technology, Inc., B-

406659 (2012)

Page 7: Bid Protests Briefing

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©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P. 7

Who Can Protest? … Two-Time Protestors

• Offeror who failed to participate in original protest

generally cannot protest corrective action in response

to the original protest.

• However, that protestor can still protest the final award

that results from the corrective action. North Wind, Inc.,

B-404880.4 (2011)

Page 8: Bid Protests Briefing

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©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P. 8

When? Quickly!

• Timeframes very short. 4 C.F.R. § 21.2.

– Improper solicitation? Protest before proposal deadline.

– Other protests? Generally 10 days after basis of protest

known

– Size Protests? 5 working days after bid opening or after

receipt of notification of awardee (for RFPs and RFQs)

• Timeframes to request debriefing very short.

– 3 days after notice of exclusion from competition or notice of

contract award. 48 C.F.R. §15.505.

Page 9: Bid Protests Briefing

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©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P. 9

What, Part Two? Protest Basis

• What is your basis?

– Specification deficiencies.

– Winner not qualified for 8(a) or other set-aside.

– Award given to non-responsive bidder.

• Failure to follow directions. Irving Burton, B-401983.3 (2010)

• Evaluation deficiencies (unequal treatment, etc.).

• Conflicts of interest in procurement process/OCI.

• Technical merits (hard, if agency has explained reasoning).

Page 10: Bid Protests Briefing

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©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P. 10

What, Part Two? Protest Basis

IDIQ : Agency’s Decision to Use

• FAR 16.504(c) – preference for MACs

• Court of Federal Claims has upheld use of

MACs/IDIQ’s for construction services. Tyler

Construction Group, No. 2008-5177 (July 25, 2009)

• Agency must document a decision to overcome MAC

preference. Information Ventures, Inc., B-403321

(Sept. 10, 2010)

Page 11: Bid Protests Briefing

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©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P. 11

What, Part Two? Protest Basis

• IDIQ: Task Orders - Protest Power Limited. Solute

Consulting, No. 12-37C (Ct. Fed. Claims, Mar. 13,

2012). Exceptions:

• Protests that exceed scope, period of maximum value of

IDIQ contract may be protested, regardless of value of

the order

• Other grounds only if task order value exceeds $10M.

Kevcon, B-406418 (Mar. 7, 2012)

Standard: “Material difference” between work in task order

versus work in contract.

Page 12: Bid Protests Briefing

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©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P. 12

Where?

Non-Size Protests

• Agency.

• Government Accountability Office.

• Court of Federal Claims.

Size Protests

• Agency, who forwards to the SBA.

Page 13: Bid Protests Briefing

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©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P. 13

Where? – The Agency

• Least formal, least expensive.

• Protester can request an independent review of the

merits of its agency protest at a level above the CO.

55.103(d)(4).

• Note: agency protest extends deadline for GAO

protest filing, but not agency review of the protest.

33.103(d)(5); 4 C.F.R. 21.2(a)(3).

• Format Requirements: FAR 33.103(d).

Page 14: Bid Protests Briefing

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©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P. 14

Where? – GAO

• Procedures: 31 U.S.C. 3551; 4 CFR 21.

• Strict timing deadlines.

– Comply or risk dismissal.

– File before GAO’s close of business, or the protest will be

dated the next day (important for pre-award protests).

– File Before bid opening for solicitation improprieties.

– Within 10 days after protest basis known for any other basis.

– Within 10 days after debriefing (when requested).

Page 15: Bid Protests Briefing

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Where? – GAO

• A GAO Protest Can Stay Contract:

– Protest before award prohibits agency from

awarding contract.

– Protest within 10 calendar days after award or within

five days after a debriefing date is offered to the

protester, the Contracting Officer must suspend

contract performance or terminate the contract.

Page 16: Bid Protests Briefing

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©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P. 16

Where? Court of Federal Claims

• Only court forum to pursue a preaward or postaward

protest. 28 U.S.C. 1491(b).

• Party can file with COFC after GAO protest, or instead

of the GAO protest.

• COFC not bound by GAO decision, but it is given

deference.

Page 17: Bid Protests Briefing

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©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P. 17

Where? Court of Federal Claims

• No automatic stay.

• Depositions, discovery is allowed.

• Standard: A “significant error” in the procurement

process resulted in “competitive prejudice” to the

protestor. Alfa Laval Separation, Inc. v. United States,

175 F.3d 1365 (Fed. Cir. 1999)

Page 18: Bid Protests Briefing

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©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P. 18

Where? Size Protests

• Protest filed with contracting officer. CO will forward to

SBA. 13 CFR 121.1003.

• A Business is “other than small” for a particular size

standard set out in the procurement. 13 C.F.R.

121.1001 through 121.1007.

• Protest must be in writing specify reason and present

evidence for claiming business is “other than small”.

Page 19: Bid Protests Briefing

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©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P. 19

Where? Size Protests

• SBA has 10 days to make size determination and notify

contracting officer unless the SBA obtains more time.

FAR 19.302.

• SBA may ask challenged business for more

information; failing to provide may result in an “other

than small” determination. 13 CFR 121.1008(d).

• Results of size determinations are entered into SBA

database.

Page 20: Bid Protests Briefing

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©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P. 20

Why? Business Considerations

• Get the contract.

• Make a point.

• Keep contract in the interim if you are an incumbent.

• Do you really want to sue your (potential) client?

Page 21: Bid Protests Briefing

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©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.

Questions?

Jackson W. Moore Peter J. Marino

[email protected] [email protected]

(919) 821-6688 (919) 821-6607