New rule on losses

Small businesses that intentionally misrepresent their size or status to win a federal contract are facing a larger potential liability under a new rule going into effect on Aug. 27.

The Small Business Administration released the new rule to implement provisions of the 2010 Small Business Jobs Act.

The new rule states that there will be a “presumption of loss” equal to the entire value of the contract if there is a misrepresentation. Previously, the liability may have been limited to just the portion of the work done.

The new rule may be an incentive for additional whistleblower False Claims Act lawsuits, because damages could be substantially increased, according to an article in Fierce Government.

The new rule also requires small businesses to update their status in the System for Awards Management (SAM) annually, or, if no update is performed, the business will no longer be identified as a small business.

The new rule also requires an authorized official to sign off on the company’s size or status certification by signing the certification page for a contract or grant as well as documentation in SAM.

More information: Federal Register notice:http://goo.gl/AaYIj
Fierce Government article:http://goo.gl/PrsTg

OASIS RFP coming

The General Services Administration is planning to release a solicitation for the $12 billion OASIS professional services procurement vehicle--small business track--on or around July 24, the agency announced.

The controversial OASIS (One Acquisition Solution for Integrated Services) program is meant to standardize and make more efficient the way that federal agencies purchase professional services.

More information: FBO.gov notice http://goo.gl/V8QGG

‘Chilling effect’ feared

Federal vendor groups are worried about a “chilling effect” on vendor-industry communications as a result of a recent inspector general report accusing General Services Administration managers of improperly intervening in contracts.

The GSA IG report of June 4 alleged that Federal Acquisition Service managers interfered in negotiations between contracting officers and vendors on Multiple Award Schedule contracts. A FAS supervisor was placed on administrative leave.

The IG advised that FAS managers not intervene in a negotiation unless there is misconduct or “serious administrative issues.” Furthermore, the FAS was advised to document all conversations and correspondence with contractor officials about specific contracts and offers, including dates, times, participants and specific details of information exchanged.

The Coalition for Government Procurement, TechAmerica, and the Professional Services Council wrote in a letter to FAS Commissioner Tom Sharpe that those recommendations would hinder needed communications.

“We are concerned that the OIG’s recommendations and GSA’s corrective actions will have a chilling effect on the role of GSA’s procurement managers in the operation of the MAS program,” stated their June 27 letter. “The recommendations create a disincentive for managers to step in when their attention and expertise is needed to break through obstacles to successful negotiations.”

The groups asked GSA to name an ombudsman to help mediate between the government and contractors.

More information: Industry letter to FAS, via Federal News Radio: http://goo.gl/Vl6c9

GSA reverse auctions

The General Services Administration launched a new reverse auction online platform— reverseauctions.gsa.gov.

“Using a government-run reverse auctions tool is a fantastic innovation for GSA’s customers, and we expect that it will drive even more savings and speed into the acquisition process,” said FAS Commissioner Thomas A. Sharpe, Jr. said in a statement.

Federal agencies expect the new auction platform will be used primarily for office supplies, laptops, tablets and monitors, as well as for simple services like warranty, training and installation.

The reverse auction platform also allows for set-asides for small businesses, GSA said.

Low-wage contractors

Seventeen House Democrats are trying to raise pay for federal contract workers, particularly for those that staff the cafeterias and concessions at iconic federal facilities such as the National Zoo and Smithsonian museums.

The lawmakers said the contract workers are paid little relative to federal workers, while the contract employers benefit from the visibility and prestige of working for the federal government.

The members wrote to the White House with their concerns, recommending that contracting officers ought to consider “living wage” requirements in awards.

More information: White House letter http://goo.gl/XpfI0