The SBA’s Two New Recertification Rules
The Small Business Administration (“SBA”) has issued two more regulations that will require that small businesses recertify their size when they engage in a merger and/or acquisition (“M&A”). The regulations, published in conjunction with the final limitation on subcontracting regulation and the new mentor-protégé program, further limit the ability of small businesses to engage in acquisitions that could impact their continued performance of small business set-aside contracts. Both are certain to make it more difficult for small businesses to engage . . . Read More
SBA Simplifies Minority Shareholder Affiliation Rule for Loan Program Applicants
SBA recently issued a final rule redefining the rules of affiliation for firms applying to SBA’s business loan programs. The final rule separates and distinguishes the loan program affiliation rules from SBA’s government contracting and business development programs. Moreover, the final rule simplifies the guidelines for determining affiliation for small business eligibility as it relates to the loan programs. Case in point—the minority shareholder rule. Under the new minority shareholder rule, when no single owner (individual or entity) holds more . . . Read More
How the New Defend Trade Secrets Act of 2016 Impacts Government Contractors
By Kimi Murakami The overwhelming bipartisan passage by both the House and Senate of the new Defend Trade Secrets Act of 2016 (“DTSA”) which was signed into law (18 U.S.C. §§ 1831-1839) by the president on May 11, 2016, marks not only an unusual display of political unity in Washington, but also presents an ideal moment for federal government contractors to assess and update their policies and procedures relating to trade secrets. To make sure you are ready for the . . . Read More
7 Key Risks for Contractors in Transit Procurements
By Michael A. de Gennaro Your company has reviewed an RFP issued by a municipal authority to select a firm to operate and maintain transit services, and the business team has signed off on the economics of submitting a bid. As your company’s counsel, you have been tasked with identifying the legal risks of the procurement, with the aim of identifying the “most important” considerations. In many instances, legal review will be approached as more or less a formality, with . . . Read More
Negotiating the Start Date Provision of Your Office Lease
In negotiating an office lease, business owners should pay particularly close attention to the terms and conditions regarding the start date of their office lease. Many landlords will begin negotiations regarding the start date of an office lease by providing an “estimated” date on which the tenant will be able to move in to the office space, stating that if the actual date on which the space becomes available is different than the estimated date, there will be no penalty . . . Read More
Contracting Globally – Part 2: International Traffic in Arms Regulations
By Kimi Murakami There are two major regimes that govern exports from the United States. One is the Export Administration Regulations (“EAR”) administered by the U.S. Department of Commerce’s Bureau of Industry and Security and, second, the International Traffic in Arms Regulations (“ITAR”) enforced by the U.S. Department of State’s Directorate of Defense Trade Controls (“DDTC”). A recent blog article discussed EAR compliance and this blog will address the requirements of ITAR. Similar to issues relating to EAR discussed in . . . Read More
SBA Announces New WOSB Online Portal
By Josh Humi Recently, the Small Business Administration (“SBA”) announced a new online portal to serve women-owned small businesses (“WOSBs”). The new portal allows WOSBs to manage their SBA-related documents, complete SBA application forms online, and receive notices of deadlines. In addition, the new portal supports self-certifications for WOSBs. SBA will be transferring existing repository documents to the new online portal, so WOSBs will not need to re-submit documents which they have already submitted to SBA. Furthermore, SBA is now managing all WOSB requirements through . . . Read More
Negotiating the Landlord Services Provision of Your Office Lease
In negotiating an office lease, business owners should pay particularly close attention to the provisions detailing the services that the landlord will be required to provide and the terms and conditions regarding those services. Business owners often have significant negotiating power with respect to such provisions, and therefore have the potential to custom-fit the services that the landlord will be required to provide to the specific needs of their business. Landlord services that business owners should consider include: Heating and . . . Read More
CFIUS Annual Report Shows Items of Interest for Government Contractors
By Kimi Murakami The Committee on Foreign Investment in the United States (“CFIUS”) recently issued its Annual Report to Congress regarding transactions that they reviewed during 2014. Below are highlights of trends and issues gleaned from the report, as well as a few best practices that contractors performing work for the U.S. federal government may find interesting regardless of whether your business may soon be the target of a non-U.S. buyer. What is CFIUS? To guard against foreign investment that . . . Read More
Creativity and Controlled Risk: A Recipe for a Successful M&A Transaction
One prevailing theme in merger and/or acquisition (M&A) transactions is risk allocation. How much risk is either the buyer or seller willing to assume? And, separately, what level of risk must either party assume in order to get the deal done? Assuming neither party has all the negotiating leverage, both parties will need to take on some amount of risk. There is a life adage that says “time heals all wounds.” In M&A transactions, however, the opposite is true; and, . . . Read More