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Tag: solicitation

Is being good enough, good enough?

With fierce competition for government contracts, one must ponder if meeting the minimum standards, is enough to win some of the most coveted contracts with the Federal Government. Vendors are finding they must set themselves apart from the competition. Compliance excellence is one way to do this.

According to a GOVCON Expert, the Defense Contract Audit Agency connected with approximately 5,800 contractors in fiscal 2021. They learned that not all contractors maintained accounting compliance. Using compliance gives contractors an edge. (GOVCONWire March 2, 2023)

The Gauge Report from 2022 gives an indication of how compliance gives contractors an edge:

  1. Nearly 66% of all solicitations call for adequate accounting systems.
  2. Government contracting firms put adequate accounting systems second on their list of top auditing challenges.
  3. Labor floor checks have increased. (ibid)

The six business systems relevant to the audit process are accounting, estimating, material management and accounting systems, purchasing, government property, and earned value. Contractors that show they have adequate business systems in these areas may have an advantage over the competition. According to the Gauge Report, accounting systems are one of the most frequent requirements in new solicitations. (ibid)

How does a contractor get an “adequate” rating? When a solicitation requires documentation, bidders must provide some form of evidence, such as a letter from the Defense Contract Management Agency (DCAA) stating that the system has been approved for use on government contracts. Many contractors do not have assessed systems, which excludes them from solicitations. (ibid)

There are three possible ways a firm can turn compliance into a competitive edge:

  1. Your company has been examined by an agency and it is determined to be “adequate.” Keep a copy of the report/determination and provide the documentation as part of the bid. (If however, deficiencies are found, fix them and obtain a follow-up audit), once an adequate determination is made, use the determination when bidding.
  2. Request a system review. Since DCAA or DCMA do reviews based on contractor requests, a strong relationship with a PCO is necessary to work on your behalf to “push” a request through. To note, the examination process can take months due to the current backlog
  3. Your company pays a commercial firm, such as a CPA, to conduct an independent examination. Some government solicitations will only accept examination findings performed by government agencies.

The government appears to be making progress. In a recent OASIS+ solicitation, the solicitation language is more flexible by following the latest procurement trend, a self-scoring system. In a self-scoring system, companies earn points for systems, clearances, certifications, and past performance, and all bidders meeting the minimum points requirement are eligible to win an OASIS+ contract. (ibid)

Your company can stay proactive by:

  1. Advocate for your company. When necessary, object to the restriction limiting SF1408 examinations be performed by “government officials.”
  2. Ask for clarification of vaguely worded compliance sections. Make certain you are clear on all sections as it may be the difference between winning or losing a contract.
  3. Make sure your company and the accounting department are knowledgeable and up-to-date with new accounting standards.
  4. Invest in cybersecurity, it will carry more weight than ever before. (ibid)

Questions concerning compliance excellence or how to get an adequate rating? Give us a call.

EZ-ier requirements for COVID efforts at GSA says EZGSA

GSA’s Multiple Award Schedule (MAS) program may be used by state and local governments to procure commercial products, services, and solutions necessary to respond to the pandemic. GSA is providing additional support by issuing Acquisition Letter (AL) MV-21-03 and Supplement to further aid America in response to COVID-19. (GSA Interact April 14, 2021)

AL achieves this by:

  • Temporarily waiving (3) MAS solicitation requirements in MAS provision SCP-FSS-001 when a company is proposing products/services to support COVID-19 efforts.
  • The AL waives:
  1. The requirement to possess two years of Corporate Experience
  2. The requirement to submit a Relevant Project Experience for each SIN proposed
  3. The requirement to submit an Annual Financial Statement for the previous two years (ibid)

The AL, however, does not change the following:

  • Certain vendor instructions regarding the submission of a Corporate Experience narrative, Letter of Commitment/Supply, Past Performance Information, Quality Control Plans
  • Category/SIN specific technical requirements outlined in the MAS Solicitation category attachments
  • A Contracting Officer’s overarching responsibilities especially determining fair/reasonable pricing, ensuring compliance with vendor instructions, and making a responsibility determination in accordance with FAR subpart 9.1 (ibid)

AL applies to all MAS large categories, subcategories, and SINs under the following conditions:

  • New vendors proposing products, services, and/or solutions in direct support of COVID-19 efforts
  • Current MAS contractors adding service SINs in direct support of COVID-19 efforts (ibid)

AL does not apply under the following conditions:

  • Any offers or modifications which include products, services/solutions that do not directly support COVID-19 efforts
  • To VA MAS for medical equipment, pharmaceutical services, or supplies (ibid)

GSA is doing a number of things to support the ongoing COVID-19 efforts. The following are to name a few:

  • Deferring MAS contract cancellations when minimum sales haven’t been met under I-FSS-639 Contract Sales Criteria
  • Issuing a non-availability determination for Trade Agreement, Buy American Statute Class Determination, allowing contracting officers to temporarily award non-TAA compliant product to support COVID-19 requirements
  • Purchase Exceptions from the AbilityOne Program
  • Implementation of Emergency Acquisition Flexibilities (ibid)

GSA/FAS has many mechanisms for its Federal Partners to access the vital supplies and services required to meet the COVID-19 pandemic. For companies who would like to reach the government market beyond the MAS program, the Commercial Platforms program provides options to partner with several commercial e-marketplace platforms. It is also possible to partner with an existing MAS contractor as a subcontractor, providing part of a total solution to an agency’s COVID requirements. (ibid)

Questions concerning AL, what it does, doesn’t do, or do you now qualify for GSA? Give us a call.