NDAA to limit reverse auctions for small biz

A little-discussed provision in the House version of the National Defense Authorization Act of fiscal 2015 appears to severely restrict reverse auctions for small business contracting.

The provision, authored by Rep. Richard Hanna, R-NY, places limits on reverse auctions. While it was originally described as aiming at construction contracts, the scope later expanded.

Renee Gemala, a press aide for Hanna, said the provision applies to contracts covered by the Small Business Act or Vets First.

“Under the bill, reverse auctions would be disallowed when the government seeks to award a ‘covered contract,’ so long as the contract is suitable for small businesses or is set-aside under one of many small business preference programs,” Steven Koprince, contracting attorney, wrote in his blog.

“This broad definition applies to a great many government contracts.”

Steve Kelman, a Harvard professor on a FedBid advisory board, urged the Senate to reject the measure as bad for taxpayers.

“The actual language prohibits reverse auctions for all services, as well as "for goods in which the technical qualifications of the offeror constitute part of the basis of award," Kelman wrote in a blog.

More information: Koprince blog: http://goo.gl/kDoSWg
Kelman blog: http://goo.gl/hNCu5e

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