ENDLESS STREAM OF IDIQ PROTESTS NOT IN BEST INTEREST OF SMALL BUSINESSES

GSA’s latest attempt to establish a small business IDIQ contract for IT solutions hit yet another roadblock last week with the filing of two more pre-award protests.  At least two companies aren’t happy with the way GSA addresses small business joint ventures and other small business rules. The Court of Federal Claims will examine the matter, a process that could take many months and will almost surely be more than the timeline for a GAO protest.  While protests can be a good thing in government acquisition by ensuring that agencies follow applicable rules, too many protests can sink a program.  Companies of all sizes need to remember that there is no inherent right to obtaining a government contract.  While a solicitation may not be written to your liking that doesn’t mean it is inherently flawed. This is especially important advice to small businesses.  Small business IDIQ contract holders, even those competing on unrestricted vehicles, usually do better as a percentage than the government’s overall small business prime award goal of 23%.  This, of course, means that there must be an IDIQ on which they can participate.  While companies of all sizes protest, small business protests have already done great damage to acquisition programs that would have benefitted more small firms than not.  GSA’s Alliant II SB was sunk.  NIH’s CIOSP IV is greatly delayed and is likely to be more so now that the agency is reportedly sending out rejection letters to unsuccessful offerors.  Now, Polaris is delayed again by protests.  Small businesses need to put themselves in the shoes of government acquisition professionals.  What’s the use of trying to help small firms with specialized IDIQ contracts if all they do is protest, driving up costs and increasing delays?  It wouldn’t be surprising if some did away with small business IDIQ’s, leaving firms to compete on the open market for set-asides or with larger companies that can offer the ease an IDIQ vehicle features.  The result would be less business for more small businesses, not really the goal that either the government or this industry segment was aiming for.  Protests on obvious errors of law or regulation are one thing, but successive protests on subjective issues are another.  Understand what that means for your business and act accordingly.