HUD s PBCA PROCUREMENT: WHAT TO EXPECT. Presented by Andrew Mohr and C. Kelly Kroll Cohen Mohr LLP Washington, D.C.
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1 HUD s PBCA PROCUREMENT: WHAT TO EXPECT Presented by Andrew Mohr and C. Kelly Kroll Cohen Mohr LLP Washington, D.C. January 14, 2016
2 Procurement Contract Or Cooperative Agreement Does It Matter? Procurement Contracts Grants/Cooperative Agreements o Formalized process o Flexible Process o Many Regulations o Fewer Regulations o Process review o Minimal process review o Rigid Scope of Work o Flexible Scope of Work o Strict schedule of milestones or deliverables o General timetables
3 The Procurement Process General Overview Agency determines it has a need for goods and/or services. Agency drafts a solicitation. Agency posts a solicitation on Federal Business Opportunities ( Interested parties prepare offers in response to the solicitation requirements and submit offers by the required due date. The contracting officer or source selection authority evaluates the offers and makes award(s).
4 The Procurement Process First Steps Data Universal Numbering System (DUNS) an offeror must obtain a DUNS number from Dun and Bradstreet. Available for free for federal contractors. Register in the System for Award Management (SAM) system which requires the completion of several federal representations and certifications. If already registered in SAM then you may need to change the Purpose of Registration from Federal Assistance Awards Only to All Awards.
5 The Procurement Process Prior to the release of the formal solicitation HUD may: o Issue Requests for Information (RFI) o Hold Industry Days o Release a draft solicitation for comment
6 The Procurement Process Types of Solicitations two basic kinds o Sealed Bidding Invitations for Bids (IFB) o Competitive Proposals Requests for Proposals (RFP)
7 The Procurement Process Types of Contracts o Fixed-Priced Contracts o Cost-Reimbursement
8 The Procurement Process Fixed-Priced Contracts o firm-fixed-price contracts, o fixed-price contracts with economic price adjustment, o fixed-price incentive contracts, o fixed-price contracts with either prospective or retroactive price re-determination, and o firm-fixed-price, level-of-effort
9 The Procurement Process Cost-Reimbursement Contracts o cost contracts, o cost-sharing contracts, o cost-plus-incentive-fee contracts, o cost-plus-award-fee contracts, and costplus-fixed-fee contracts
10 The Procurement Process Solicitation will probably be: o A competitive procurement/rfp o Firm Fixed Price o Multiple Award, i.e., single awardee for each State
11 The Procurement Process WHERE: The RFP will be published on and most likely on HUD s website given its past practices. WHEN: We don t know so check frequently!
12 The Procurement Process The RFP Broken Down into Sections A-M o Section A Contract Form/SF33 Point of Contact Amendment Acknowledgements Signature Page DUE DATE
13
14 The Procurement Process The RFP Sections A-M o Section B Supplies and Services and Pricing Contract Line Items Period of Performance/Options Pricing Guidelines o Section C Statement of Work
15 The Procurement Process The RFP Sections A-M o Section D Packaging and Marking o Section E Inspection and Acceptance o Section F Deliveries of Performance
16 The Procurement Process The RFP Sections A-M o Section G Contract Administration Data o Section H Contract Requirements o Section I Contract Clauses o Section J List of Attachments
17 The Procurement Process The RFP Sections A-M o Section K Representations and Certifications o Section L Instructions to Offerors o Section M Evaluation Factors for Award
18 The Procurement Process HELPFUL HINTS o A team of people should scour and scrutinize every word of the solicitation including clauses incorporated by reference. This is a TEAM effort. o Make sure you understand everything if not sure ask questions! o Make checklists of action items and assign items to the proper parties internally with set deadlines. o Respond appropriately to the specifications and follow the structure established by the solicitation.
19 The Procurement Process HELPFUL HINTS o Be clear give specific information about your entity and how it will perform the SOW. Do not parrot back the solicitation requirements. o Set yourself apart from others. Why are you the best? Put it in the proposal but apply it to the specific work being solicited. o Offer competitive pricing. You may not get another chance. o Proofread!
20 The Procurement Process Before the RFP Due Date Pre-Proposal Conference Questions and Answers Amendments
21 The Procurement Process After the RFP Due Date Determination of a Competitive Range Discussions/Clarifications FPRs Notice of Award
22 Contract Compliance Will PHAs have to comply with: o Service Contract Act? o Equal Opportunity Clauses? o E-Verify? o Small Business Subcontracting Plans? Private companies will have a higher administrative burden.
23 Subcontracting A small business is a concern that: o Is organized for profit; o Has a place of business in the U.S.; o Operates primarily within the U.S. or makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor; o Is independently owned and operated; and o Is not dominant in its field on a national basis
24 QUESTIONS
25 POINTS OF CONTACT Andrew Mohr, Esq. C. Kelly Kroll, Esq. COHEN MOHR, LLP 1055 Thomas Jefferson St., N.W., Suite 504 Washington, DC (202) office
26 HUD s PBCA PROCUREMENT: PROTESTS Presented by Andrew Mohr and Daniel J. Strouse Cohen Mohr LLP Washington, D.C. January 14, 2016
27 What Are Bid Protests? Legal challenge brought by an offeror or potential offeror to ensure fair and legal procurement. Generally challenges to terms of solicitation or contract award. Protests can be filed pre-award, post-award, and sometimes in between
28 Prevalence of Protests FY 2015 FY 2014 FY 2013 FY 2012 Cases Filed 2,639 2,561 2,429 2,475 Sustain Rate 12% 13% 17% 18.6% Effectiveness Rate 45% 43% 43% 42%
29 Where to Protest? Directly With The Agency Government Accountability Office (GAO) Court of Federal Claims
30 Agency Level Protests Protest filed with the Contracting Officer, reviewed one level above CO Generally ineffective Most effective in pre-award context Least expensive
31 Court of Federal Claims Protests Most expensive protest process Longest process Unpredictable
32 GAO Protests Most Common Form of Protest Filed Less expensive than Court of Federal Claims Discovery process Uniform body of case law Chance for appeal at Court of Federal Claims
33 The Automatic Stay Greatest benefit to filing a protest with GAO Pre-Award Protest: Prevents award of contract until protest resolved. CAUTION: Still file a proposal Post-Award Protest: Prevents performance of contract if protest filed within applicable deadlines.
34 Exceptions to Automatic Stay Suspension automatically kicks in, but government may override Pre-award: Head of agency finds urgent and compelling circumstances to award and award likely within 30 days Post-award: Head of agency finds in best interest to perform or urgent and compelling circumstances will not permit waiting for GAO decision.
35 Pros and Cons Agency PROS Inexpensive Informal Least Intrusive CONS Difficult to Win Lose Automatic Stay GAO PROS Automatic Stay Uniform Case law Discovery Relatively Inexpensive CONS May upset customer May not lead to award Public Information is limited Court PROS CONS Decisional Body of law Length of Time Expensive
36 Pre-Award Protests A pre-award protest is a challenge related to the terms of a solicitation. General purpose is to ensure that the solicitation provides all offerors with a fair opportunity to compete for contract award
37 Pre-award protest issues Terms that unduly restrict competition Terms that are ambiguous Terms that inaccurately set forth the agency s requirements Evaluation scheme will not provide the expected result Lack of clarity
38 Post-Award Protests A post award protest is a challenge to the agency s award decision. Focus on agency s evaluation of proposals
39 Post-Award Protest Issues Agency misevaluated your proposal Agency misevaluated awardee s proposal Agency did not comply with the evaluation criteria (See Sections L & M) Agency conducted improper discussions Agency failed to conduct a proper tradeoff Agency treated offerors unequally
40 Removal From Competiive Range Removal from the competitive range Only when evaluations include discussions Different set of timeliness rules
41 Timelines For Filing GAO Protests Extremely Stringent and Often Fast Timelines Critical to ensure timely filing, or will be dismissed Timeline for automatic stay may be shorter than timeline for having protest heard
42 Timelines for Automatic Stay Pre-Award Notify protest prior to award decision Agency cannot award while protest is pending Post-Award 5 days after a required debriefing OR 10 days after award Whichever is later
43 Counting the days Start date: The day after the triggering event (date of award; date of debriefing) End date: Date agency receives notice from GAO GAO may not notify the same day you file File early!
44 Timelines for Filing Pre-Award: If challenging terms of solicitation, prior to due date for proposals. NOTE- still submit a proposal Any other pre-award protest, 10 days after knew or should have known Post-Award: 10 days after knew or should have known Debriefing exception 10 days after debriefing
45 To Protest Or Not To Protest That is the Question
46 Impact of Protests Delays in Procurement and Performance Additional Costs (Direct and Indirect) Change in Contract
47 Solicitation Is Issued Agency issues solicitation on April 1, Proposals due on July 20, 2016
48 What to Look For Do you understand what you are being asked to do? Is the work broader or narrower than expected? Are the evaluation criteria clear? Do the evaluation criteria or terms of the PWS restrict competition? Do the evaluation criteria broaden the competition? Do the terms of the solicitation appear to favor some offerors over others? How will price be evaluated?
49 Concerns? Ask questions Discuss concerns with contracting officer Consult with an attorney, if desired
50 Pre-Award Protest Business Considerations Can this be resolved without a protest? Can this be resolved with an agency level protest? (Will this impact stay?) How will customer react? How much will this cost?
51 Filing A Pre-Award Protest File with contracting officer and at protests@gao.gov File prior to due date and time for submission of proposals if solicitation impropriety File within 10 days of when knew or should have known any other protest ground (by 5:30 Eastern). Will know filed if receive confirmation from GAO
52 After Proposal Submission Does the agency conduct discussions? Are you excluded from the Competitive Range? Request a Debriefing Must take first date offered Debriefing Request should be for preaward debriefing Request must come within 3 days of notice of exclusion If agency provides option for post-award debriefing, decline.
53 Competitive Range Debriefing Debriefing may be done orally or in writing Must include Evaluation of significant elements of proposal Summary of rationale for eliminating proposal Reasonable responses to relevant questions Will not include Number of offerors Identity of offerors Content of proposals Ranking of offerors Evaluation of other offerors
54 Filing A Competitive Range Protest File with contracting officer and at protests@gao.gov File within 10 days of debriefing (if debriefing requested on time). Must file by 5:30 to be timely If award had not been made, stay would prevent award from being made. Will know filed if receive confirmation from GAO
55 Agency Notifies You Of Unsuccessful Offer
56 What do you do? Request a debriefing within 3 days (ASAP) Prepare for debriefing Prepare questions for debriefing (written or oral) Request redacted Source Selection Decision Obtain as much intel (legally) as possible Information obtained in debriefing Weaknesses, significant weaknesses, deficiencies Overall evaluated cost or price, technical rating of awardee and you Ranking of offerors Summary of rationale for award Reasonable responses to questions
57 Why do you need information? Protest grounds must be specific and factually based. Initial protest is an attempt to get your foot in the door. More information to follow.
58 What to look for? Improper evaluations disregard portions of your proposal Unequal evaluations awardee received scores you didn t; you received weaknesses awardee didn t. Fair assessment of your proposal? Accurate price? Following of evaluation criteria?
59 Do I protest? Business Decision Cost Likelihood of protest success? Likelihood of contract award? Relationship with the government? Incumbency? Sufficient facts?
60 You ve filed Now What Process is the same for each type of protest Agency has 30 days to file a response to protest, and must include all relevant documents. NOTEdocuments may be protected Protester (and intervenor) have 10 days to file comments on report, along with any supplemental protests Agency receives opportunity to respond to supplemental protests. Protester can comment after that. GAO decision within 100 days of initial protest filing
61 You could win too! Other offerors may decide to protest your award GAO permits intervention Not your fight but you can assist the government
62 POINTS OF CONTACT Andrew Mohr, Esq. Daniel J. Strouse, Esq. COHEN MOHR, LLP 1055 Thomas Jefferson St., N.W., Suite 504 Washington, DC (202) office
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