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FED GOV CON - NDAA 2019: Focus on Bid Protests, OTAs, and Commercial Contracting Changes
1. FED GOV CON
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6. About Our Speaker:
Mary Beth Bosco
HOLLAND & KNIGHT
Government Contracts attorney
representing small and large businesses
in connection with regulatory
compliance, investigations and audits,
and transactions.
7. NDAA 2019: Focus on Bid
Protests, OTA, and Commercial
Contracting Changes
8. • 2019 NDAA IMPORTANT CHANGES AND TRENDS:
Bid Protests
Commercial Item Contracting
Supply Chain
OTA
2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates
9. • BID PROTEST PROCESS TREND
2019 NDAA continues to reflect congressional concern with the bid protest process
and its impact on procurements.
In this year’s NDAA, congress has focused on protests that are filed at GAO, and if
unsuccessful, are then taken to the Court of Federal Claims.
Congress is requiring DoD to prepare a report analyzing these “double” protests,
including success rates, impact on procurement planning, and costs.
In addition, not later than 12/1/2019, DoD must develop a plan and schedule for an
expedited bid protest process for DoD contracts with a value less than $100,000.
2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates
10. • BID PROTEST PROCESS TREND
Not later than 12/1/2019, DoD must develop a plan and schedule for an expedited
bid protest process for DoD contracts with a value less than $100,000.
This provision represents a partial implementation of the Section 809 Panel’s
recommendation that DoD be granted its own protest authority, outside of GAO and
COFC.
Should we expect to see the creation of a new process similar to the GSBCA’s
authority to hear protests regarding telecommunications procurements in the
1990s?
2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates
11. • BID PROTEST PROCESS TREND
Not later than 12/1/2019, DoD must develop a plan and schedule for an expedited
bid protest process for DoD contracts with a value less than $100,000.
This provision represents a partial implementation of the Section 809 Panel’s
recommendation that DoD be granted its own protest authority, outside of GAO and
COFC.
Should we expect to see the creation of a new process similar to the GSBCA’s
authority to hear protests regarding telecommunications procurements in the
1990s?
2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates
12. COMMERCIAL ITEMS
Splits “commercial item” into two categories: Commercial products and
Commercial Services.
Recognizes that state and local governments may be included in the definition
of commercial customers.
Effective date of January 1, 2020.
2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates
13. COMMERCIAL PRODUCTS
(1) A product, other than real property, that—
(A) is of a type customarily used by the general public or by
nongovernmental entities for purposes other than governmental purposes; and
(B) has been sold, leased, or licensed, or offered for sale, lease, or
license, to the general public. OR
2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates
14. COMMERCIAL PRODUCTS
(2) A product that—
(A) evolved from a product described in paragraph (1) through advances in
technology or performance; and
(B) is not yet available in the commercial marketplace but will be available in the
commercial marketplace in time to satisfy the delivery requirements under a Federal
Government solicitation.
(3) A product that would satisfy the criteria in paragraph (1) or (2) were it not for—
(A) modifications of a type customarily available in the commercial marketplace;
or
(B) minor modifications made to meet Federal Government requirements.
2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates
15. COMMERCIAL PRODUCTS
(6) A nondevelopmental item if the procuring agency determines, in
accordance with conditions in the Federal Acquisition Regulation, that—
(A) the product was developed exclusively at private expense; and
(B) has been sold in substantial quantities, on a competitive basis, to multiple
State and local governments or to multiple foreign governments.
2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates
16. COMMERCIAL SERVICES
(1) Installation services, maintenance services, repair services, training services, and
other services if—
(A) those services are procured for support of a commercial product, regardless of
whether the services are provided by the same source or at the same time as the
commercial product; and
(B) the source of the services provides similar services contemporaneously to the
general public under terms and conditions similar to those offered to the Federal
Government;
2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates
17. COMMERCIAL SERVICES
(2) Services of a type offered and sold competitively, in substantial quantities, in the
commercial marketplace—
(A) based on established catalog or market prices;
(B) for specific tasks performed or specific outcomes to be achieved; and
(C) under standard commercial terms and conditions.
3) A service described in paragraph (1) or (2), even though the service is transferred
between or among separate divisions, subsidiaries, or affiliates of a contractor.
2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates
18. COMMERCIAL PRODUCTS AND SERVICES
DoD Task of Identifying Exemptions for Commercial Products and Services Expands
2017 NDAA stated that for all provisions and clauses promulgated after January 1,
2015, there must be an exemption for commercial products and services unless DoD
makes a determination that an exemption is not in the best interests of the
government.
2019 NDAA moves the review time back to October 13, 1994.
2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates
19. OTHER TRANSACTION AGREEMENTS
2018 NDAA expressed a desire to increase the use of OTAs for science and technology and
prototyping programs.
Also allowed follow-On production contracts may be awarded to consortia of industry and
academic institutions.
2019 NDAA continues expansion of OTA usage:
DOD to collect and analyze data related to the Department’s use of OTAs, report
annually to Congress on the data collected, and update policy and guidance
related to the use of OTAs.
Follow-on production OTAs, to allow them even if predecessor prototype
projects had not been completed.
2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates
20. SUPPLY CHAIN
“The Secretary of Defense shall develop a process and procedures for limiting foreign
access to technology through contracts, grants, cooperative agreements, or other
transactions, when such limitation is in the interest of national security.”
On December 21, 2018, President Trump signed into law H.R. 7327, the “Strengthening and
Enhancing Cyber-capabilities by Utilizing Risk Exposure SECURE Technology Act.”
The law creates a Federal Acquisition Security Council to set policy and standards to address
supply chain risk.
The Council has the ability to make recommendations to exclude sources for federal
procurement actions.
2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates