FEDCON Summit

1. 2012 FEDCON Conference
Bid Protests
Presented By:
Peter J. Marino
Jackson Wyatt Moore, Jr.
Smith, Anderson, Blount, Dorsett,
Mitchell & Jernigan, LLP
(919) 821-6688
pmarino@smithlaw.com
jmoore@smithlaw.com
www.smithlaw.com
©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.

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Bid Protest Trends - GAO
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
©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.
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The What? “Bid Protest” Defined
“[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.
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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.
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. . . 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?
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… 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)
©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.
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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)
©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.
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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.
©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.
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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).
©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.
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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)
©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.
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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.
©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.
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Where?
Non-Size Protests
• Agency.
• Government Accountability Office.
• Court of Federal Claims.
Size Protests
• Agency, who forwards to the SBA.
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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).
©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.
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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).
©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.
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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.
©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.
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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.
©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.
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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)
©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.
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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”.
©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.
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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.
©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.
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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?
©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.
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21. Questions?
Jackson W. Moore Peter J. Marino
jmoore@smithlaw.com pmarino@smithlaw.com
(919) 821-6688 (919) 821-6607
www.smithlaw.com
©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.