CGI CASE SHOWS BENEFITS OF NOT JUST ACCEPTING TERMS YOU DON’T LIKE

CMS decided to fundamentally change the payment terms of their re-compete of a contract providing Medicare claims support.  While most responding companies simply capitulated to the proposed new change, CGI Federal did not.  They believed that CMS’ proposed payment terms violated regulations governing commercial item contracts and protested the solicitation.  This illustrates two important factors of which all contractors need to be aware:  First, don’t just accept a contract provision you can’t live with and Second:  Know when in the business cycle to protest.  Cutting through the details, the appellate court in this case agreed with CGI.  Payment terms sought by CMS were not consistent with the FAR.  Make sure you know the rules that should govern your federal business.  Don’t assume that your customer knows or that something in the RFP or RFQ actually belongs there.  If you’re selling commercial solutions, insist on only those rules that govern those types of acquisitions.