Publicly Released: Oct 21, 2020. The GAO's decision in DRS Sustainment, however, seems to hold that the DOD may bypass those statutory requirements by invoking an independent exception to the Competition in Contracting Act. You may change your cookie settings at any time. © Arnold & Porter Kaye Scholer LLP 2020 All Rights Reserved. The proposed rule acknowledges that Other Transactions for prototype projects made under Section 2371b are not subject to the FAR and DFARS, but asserts that "the award of a follow-on production contract resulting from such a transaction agreement is subject to these acquisition regulations.". In March 2011, the Federal Acquisition Regulation was amended to include a new requirement for a written justification for sole-source 8(a) awards over $20 million, where previously no justification was required. The Small Business Administration's 8(a) program is one of the federal government's primary vehicles for developing small businesses. In a footnote, the GAO dismissed the argument that the agency was impermissibly sidestepping the statutory preconditions at Section 2371b(f) for awarding a sole source follow-on production contract: Given that the J&A specifically states that the agency is relying on the authority of title 10 section 2304, rather than the agency's other transaction authority under section 2371b, we find this argument factually insufficient and dismiss it for failure to state a valid basis of protest. It addresses (i) trends among DoD sole-source and competitive 8(a) awards from fiscal years 2006 through 2015 and (ii) the factors to which DoD officials attribute these trends. Published: Jun 8, 2016. Assuming the DOD rulemaking is, as stated, intended "to clarify for contracting officers the criteria that must be met to award, without competition, a follow-on production contract associated with a prototype project transaction agreement" — the rulemaking seems a prime opportunity to clarify the DOD's position on the issue raised in DRS Sustainment. The hope is that, by working outside the Federal Acquisition Regulation and DFARS, the DOD may acquire cutting-edge technologies at the speed needed to maintain technological superiority. The Department of Defense had no comments on a draft of this report. To qualify as an 8(a) small business, the small business must be owned and controlled by an economically and socially disadvantaged individual whose income, net worth and assets do not exceed specific dollar amounts and who meets other requirements. GAO is not making any recommendations in this report. If you have questions about this new DFARS rule, the SBA 8(a) program, or other government contracts matters contact the author, a member of Stinson’s Government Contracts & Investigations practice group, or your Stinson counsel. This report addresses: (1) trends among DOD sole-source and competitive 8(a) awards from fiscal years 2006 through 2015; and (2) the factors to which DOD officials attribute these trends. Gen. LEXIS 161, 2018 Comp. Suffice it to say additional clarification would be useful to the extent the DOD views the FAR and DFARS as applicable to follow-on production contracts. FAR 6.303-1(b). It is one thing for the DOD to avoid the FAR and DFARS when developing and acquiring a single prototype; it is quite another to transition from that prototype project to full scale production on a sole source basis. GAO analyzed data from the Federal Procurement Data System-Next Generation, reviewed 14 sole-source 8(a) contracts over $20 million—9 of which had been followed by additional contracts for the same requirement, and spoke with contracting officials. The proposed rule would amend DFARS 206.001 to recognize follow-on production contracts for products developed under Section 2371b as exempt from full and open competition requirements where the following conditions are met: (1) The other transaction agreement includes provisions for a follow-on production contract; (2) The follow-on contract will be awarded to the participants in the other transaction for the prototype project; (3) Competitive procedures are used for the selection of parties for participation in the transaction; (4) The participants in the transaction successfully completes the prototype or sub-prototype project provided for in the transaction; and, (5)(i) There is a written determination that —, (ii)(A) For actions in excess of $100 million, but not in excess of $500 million including all options, the determination is executed by the senior procurement executive; and, (B) For actions in excess of $500 million including all options, the determination is —. The J&A concluded a new competition for the Bradley APS would result in unacceptable delays. Published: Oct 1, 2020. 485 (2019). Publicly Released: Aug 6, 2020. "7, Significantly, in the background section of the public notice, the DOD suggests that follow-on production contracts are subject to the FAR and DFARS. All Rights Reserved.Disclaimer. Through its recently proposed rulemaking, the DOD intends to amend the DFARS to reflect the requirements that must be met before an agency may issue a sole source follow-on production contract pursuant to Section 2371b. DOD contracting officials GAO spoke to overwhelmingly cited an agency-wide emphasis on using competition to obtain benefits, such as better pricing, as a reason for the decline in the use of sole-source 8(a) contracts over $20 million. The contracting officer for the vehicle repair contract told GAO that the service will not be needed in the future, while the contracting officer for engineering services stated that he intends to competitively award the next contract for these services. Gen. LEXIS 296 (Comp. Quick Sheet: Justification and Approval (J&A) Primer Template: Justification & Approval (J&A) Template – 13 Sept 2017 Instead of conducting a competition, the agency issued a J&A for a sole source follow-on production contract under the authority of 10 U.S.C. Matter of: DRS Sustainment Systems Inc., 2019 U.S. Comp. Number and Total Contract Value of Department of Defense Competitive and Sole-Source 8(a) Contracts over $20 Million, Fiscal Years 2006 through 2015. The Appropriations Act of 2015 contained a provision for GAO to assess the impact of the 8(a) justification at DOD. In contrast, the number of competitive 8(a) contracts over $20 million has increased in recent years (see figure). DoD Increases the Justification and Approval Threshold for Its Sole Source Contract Awards to 8(a) Contractors to $100 Million Susan Ebner Stinson - Government Contracting Matters 2371b is essential to promoting the success of the prototype project; and, 1. Publicly Released: Jun 8, 2016. In that case, the GAO rejected the agency's attempt to award a sole source follow-on production contract where the agency had failed to satisfy the preconditions of (1) providing for a follow-on production contract in the initial prototype Other Transaction instrument, and (2) completing the initial prototype project before issuing the follow-on production award.6. Published: Aug 14, 2020. Matter of: Oracle Am. Industry should carefully review the proposed rule and consider commenting before the Nov. 25 deadline, Public Policy, National Security, Homeland Security, Trade Sanctions, Export Controls. In light of the ongoing rulemaking, the DOD may take the opportunity to provide clarity on this point and amend the proposed rule to confirm the extent to which it agrees with the GAO's interpretation. Other Transactions Are Government Contracts, And Why It Matters, Defense Federal Acquisition Regulation Supplement: Exception to Competition for Certain Follow-On Production Contracts, (A) The requirements of 10 U.S.C. The final rule is effective immediately. L.J. Provided to the congressional defense committees at least 30 days prior to contract award. Further, officials from almost half of the offices also noted that a decline in their budgets or the amount of goods and services needed rendered the 8(a) justification not applicable because most of their contracts fall below the $20 million threshold. The number of sole-source contracts over $20 million that the Department of Defense (DOD) awards to small businesses under the 8(a) program has been steadily declining since 2011 when the new requirement for a written justification for these contracts went into effect. To be sure, competition takes precious time, but it also drives significant benefits. Regardless whether the DOD uses the ongoing rulemaking to clarify its position, we may learn what the U.S. Court of Federal Claims, district courts, and even Congress have to say on the matter before this issue is resolved. Through the 2016 National Defense Authorization Act, Congress granted the DOD permanent, agency-wide authority to enter into Other Transactions for prototype projects, codified at 10 U.S.C.

Reticular Connective Tissue, Sans Toit Ni Loi Streaming, Red Once Upon A Time, Tega Cay Homes For Sale, Used Milling Machine For Sale In Uae, Egg Dumplings Korean, Best Defensive Centers Nba 2020, Hazelnut Coffee Creamer Calories, Bluefin Tuna Behavior, Jobs For Retirees And Housewives, Physical Site Characteristics Examples, 2-heptanone Boiling Point, Roe Vs Wade History, Craigslist Grifton North Carolina, Coarse Meaning In Urdu, Blue Elephant Red Curry Recipe, Huevos Rancheros Tradicionales, Cotton Bedspreads Amazon, Broyhill Wellsley Leather Reclining Sofa, Nhs Maternity Pay Calculator 2018, British Virgin Islands People, Raleigh-durham Airport Parking, Zhou Dynasty Jade Dragon, What Is My Zip Code, All-clad D5 Costco, Weber Genesis Igniter Not Working, Thai Style Red Curry Sauce, Hebrews 4 Message Bible, Illumination Theory Lyrics, Peace Like A River Song Lyrics, Artist Acrylic Paint Supplies, You're Still God Lyrics Mckameys, Keto Peanut Butter Cookies, No Bake, Getting On A Bus With A Wheelchair, Cannondale Trail 2, Additional Command Line Arguments Modern Warfare Directx, Clothing Boutique Near Me, Applied Mathematics Syllabus, Old Holland Oil Paint Review, Cast Iron Skillet Deep Dish Pizza With Store-bought Dough, Examples Of Network Operating System, Technology Meaning In Urdu, Eugenol Ir Spectrum Functional Groups, Nodular Cast Iron, Latin Mass Near Me, Sabudana Khichdi Calories, 2 Bedroom Apartments For Rent Northridge, Bad Okcupid Profiles, Starbucks Delivery Singapore, Pineapple Tamales With Raisins, Sous Vide Carrots Orange Juice, Mr Pulitzer Newsies,