Unicor Banned From Competing In Small Business Set Asides For Services
Client Alert | less than 1 min read | 02.14.05
On February 3, 2005, in response to two protests filed by small business contractors challenging the award of a contract to UNICOR (Federal Prison Industries or "FPI") under a total small business set-aside procurement, the SBA determined that UNICOR is other than small under the applicable size standard. UNICOR contended that, irrespective of its size, "it is eligible to compete for this procurement because recent changes in the law [specifically, March 26, 2004, amendments to the FAR] now define small business set asides as including FPI," but the SBA held that those requirements are not mandatory if the solicitation involves "acquiring services," as opposed to purchasing items listed on FPI's schedule.
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Recent sustain decisions by the U.S. Government Accountability Office (GAO) in Fluor Federal Solutions, LLC and Reliance Test & Technology send a clear message: when an agency tries to fix a Procurement Integrity Act (PIA) violation by committing a second one, the cure can be just as fatal as the disease. The cases involved the U.S. Air Force’s $1.8 billion procurement for O&M services at Elgin Air Force Base. During discussions, the Air Force inadvertently released a pricing overview slide with all offerors’ bottom-line evaluated costs to Reliance Test & Technology, which immediately notified the agency of the error. In response, the Air Force decided to level the playing field by providing the same information to all the other offerors in the procurement, stating, “[o]fferors may consider this disclosure in their [final proposal revision].”
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