By Anton Reut & Brian Friel

GSA is about to revise the Alliant procurement rules to allow more bidders in the tent. The primary problem is the stringent rules on contractor teaming arrangements (CTA). In this article, we explain the forthcoming changes in the rules and what this means to you.

The rules in the current Alliant draft are a stumbling block for many small business bidders. The most onerous rules are these: (1) Not allowing bidders to count the experience of their subcontractors; and (2) not allowing Joint Venture (JV) bidders to use any experience other than that from an existing JV. These rules impact many small business bidders who deserve a piece of this huge contract.

Recent experience on GSA’s large VETS 2 GWAC program leads us to believe that GSA will provide relief to small business bidders on Alliant 2. The September draft RFP for VETS included the same anti-teaming rules we see in Alliant. However, the November 2015 National Defense Authorization Act requires agencies to let small business bidders form new teams to bid on contracts such as Alliant 2 and VETS 2. This law was passed in response to small business complaints they were shut out of another GSA contract, the OASIS professional services contract, which had blocked small businesses from forming new teams.

When the final RFP for VETS 2 came out on April 21, GSA obeyed the new law and changed the teaming rules. This enabled small businesses to form new joint ventures and count the experience of subcontractors.

Forthcoming Changes in the Alliant 2 Solicitation

On April 21, the Alliant Procurement Contracting Officer (PCO) posted a statement warning bidders not to use the templates in the draft RFP because, “the probability of significant changes . . . is very high.” That is probably at least in part a reference to the expected changes in teaming.

VETS 2 allows bidders to form new joint ventures or contractor teaming arrangements (CTA). VETS 2 allows prime bidders to obtain evaluation points for the capabilities of their teaming partners. Joint venture bidders can count the experience of not only the JV itself but also the JV member companies.

This change allows small companies that would not have a chance of winning a prime contract on their own to partner with companies that are better positioned to win. The change also allows a prime bidder to join another team as a subcontractor.

There are several big caveats. For one, prime bidders won’t be able to count their subcontractors’ certifications toward their point totals. For another, the final RFP for VETS 2 adds two new categories–Organizational Risk Assessment (L.5.5.1) and Limitations on Subcontracting Compliance Risk (L.5.5.2). These provisions have the potential of mitigating some or all of the points gained by teaming, depending on how a bidder structures their partnership.

It is instructive for bidders to look at some of the ways GSA will likely liberalize the Alliant 2 solicitation:

1. For small business teams, allow subcontractors’ prime contract projects to count for relevant experience / past performance and leading edge technology points.
2. Provide a more flexible interpretation of allowable small business JV experience.
3. Allow small businesses to bid both as primes and as subcontractors on other primes’ teams.

A company may be able to form a JV or a CTA with a company or companies with complementary points that would increase the odds of selection. It’s most likely that partner companies could contribute relevant experience or leading edge technology points, not accounting, certification, or clearance points.

GSA will also likely penalize the formation of new teams by awarding a new category of points to companies that bid on their own, use an existing joint venture, or use only subcontractors that it has previously worked with.

We believe that, the anticipated liberalization of the teaming rules will apply to Small Business but will probably not apply to Large Business. This is because the new law mandating more liberal teaming rules does not include Large Business. However, we are watching to see the following:

1. If organizational risk assessment points are included in the final unrestricted RFP, the effect would favor both large businesses and small businesses that do not form new teams.
2. If there are any PSC additions,
3. If there is any shift in the weighting of point elements.
Impact of the Changes in Teaming

The impact of the change in teaming rules will be significant. Companies will have to carefully consider how to form the right team to increase their chances of winning. Small companies that would have been left out now have a chance to participate. Small business primes will have to decide whether they’ll go it alone or bring on subcontractors to improve their score.

OUR team has spent considerable time and effort analyzing OASIS, Alliant 2, and VETS 2 to determine scores and rankings for our clients. We are advising them that the “Cut Score” will very likely be raised to a higher level , and therefore we are working with them to ensure they are taking the appropriate steps to maintain and/or improve their position above our analysis of the “Cut Score.”

What Should Bidders do — with this Reprieve?

These changes have given Alliant 2 bidders a reprieve. There is now an extra 5 – 6 weeks before the final RFP comes out. Companies should determine what they bring to the table. What experience they have in the various Product Service Codes (PSCs) and get on a team as a prime or a sub.

It will be possible for small businesses that were not qualified by themselves — to build a team of partners they have worked with before and win a contract.

However, companies that want to take advantage of this opening have to move right now. There is no way a bidder will have time to complete a winning proposal after the final RFP is released.

The key item is the self assessment. This is a challenge for those companies that have not done one before. We have prepared a templated solution that helps companies quickly and reliably determine / verify their score. To know where they stand in relation to other bidders and in relation to the estimated “cut line.” And hopefully develop a strategy to raise their score. As a sage once said, “He who hesitates is lost.”

If you have any questions or would like to know more, please contact us here.