FedBid scrutinized

FedBid is under scrutiny-- again. The reverse auction company’s actions are being examined closely in two protests recently upheld by the Government Accountability Office.

Raul Espinosa, a critic and small business principal, and Scott Amey, general counsel for the Project on Government Oversight watchdog group, say other vendors may have been hurt by similar actions as those in the GAO protests. “These decisions are exposing potential problems,” Amey told Set-Aside Alert.

On Nov. 26, the GAO upheld a protest by FitNet Purchasing Alliance, a gym equipment supplier headed by Espinosa. The Interior Department improperly evaluated FitNet based on an Activity Card alert issued by FedBid, GAO ruled.

The contracting officer’s reliance upon the FedBid alert was “unreasonable” and constituted “disparate treatment,” the GAO said. “The agency’s decision not to award the contract to FitNet amounted to a determination of nonresponsibility, which the agency should have referred to the SBA,” the GAO decision stated.

FedBid Marketing Vice President Andres Mancini told Set-Aside Alert that FedBid agreed with the GAO that the contracting officer should have performed due diligence in addition to checking the Activity Card alert.

The GAO did not rule on another point of contention between FitNet and FedBid, regarding the suspension of FitNet’s account on FedBid in a key period during the procurement.

Mancini told Set-Aside Alert FitNet’s account was temporarily suspended because Espinosa made a “fraudulent alteration” of FitNet’s Activity Card.

Espinosa told Set-Aside Alert that he was “forced” to admit to altering FitNet’s Activity Card to regain access to FedBid, which he did because he needed the access to prove his due process was violated.

“The act of allowing the posting of performance alerts, as well as that of suspending contractors, constitute illegal 'defacto debarment practices' which IGs must investigate,” Espinosa said. He is urging further investigations and asking affected vendors to contact him (904-347-4726).

In July, the GAO upheld a protest by AeroSage LLC, a small business fuel supplier. GAO agreed with AeroSage that FedBid, acting on behalf of the Justice Department, improperly imposed additional requirements on AeroSage that were not spelled out in advance.

FedBid previously was in the news due to a Veterans Health Administration scandal. FedBid has denied any improper actions.

More information: GAO FitNet decision: http://www.gao.gov/assets/670/667235.pdf
GAO AeroSage decision: http://www.gao.gov/assets/670/664627.pdf

Defense authorization bill allows sole-source contracts for WOSBs

Congress OKs $1.1 trillion for U.S. government

FedBid scrutinized

GSA professional services schedules migration to begin Jan. 1

Defense Dept. to review LPTA

Column: Finding those elusive program managers

Washington Insider: