BLOG: SBA Issues Proposed Rule Changing Receipts Calculation to 5 Years, Implementing Small Business Runway Extension Act
On June 24, 2019, the Small Business Administration (SBA) published its long-awaited proposed rule changing the period of measurement for a receipts-based size calculation from three years to five years. This change was prompted by the Small Business Runway Extension Act (the Runway Act), which became law on December 17, 2018. SBA was slow to implement this change because SBA believes that the Runway Act amended a section of the Small Business Act that does not apply to SBA. “Nevertheless,” SBA says, . . . Read More
BLOG: Learn from Others’ Mistakes and Avoid an FCA Claim
The recent settlement reached by International Business Machines Corporation (IBM), Cúram Software Ltd. (Cúram), and the Department of Justice provides a useful lesson for government contractors—especially contractors in the healthcare industry. The $14.8 million settlement follows allegations that Cúram-IBM violated the False Claims Act (FCA) by making material misrepresentations in a proposal to support the development of Maryland’s Health Insurance Exchange website and IT platform. Specifically, Cúram made a presentation in which it stated that its software could make eligibility . . . Read More
BLOG: Use It Or Lose It – U.S. Supreme Court Holds Employers Who Wait Too Long to Raise EEOC Claim Objection to Title VII Discrimination Lawsuit May Forfeit Objection
Recently, in Fort Bend County, Texas v. Davis, the U.S. Supreme Court was faced with a jurisdictional question: If a plaintiff fails to exhaust her remedies by first filing an Equal Employment Opportunity Commission (“EEOC”) claim, is she jurisdictionally barred from suing her employer for discrimination under Title VII of the Civil Rights Act of 1964 (“Title VII”)? In typical lawyerly fashion, the Supreme Court drew a distinction between “mandatory” and “jurisdictional” and answered with an “it depends.” This blog addresses the . . . Read More
BLOG: What Will Happen to the DoD’s Mentor-Protégé Program?
As many of our clients know, there are several mentor-protégé programs run either by the SBA or specific agencies that are intended to help small businesses develop and enhance their ability to serve as a prime contractor or subcontractor in federal contracts. For example, the SBA has the 8(a) mentor-protégé program and the all-small mentor-protégé program, and it also approves agency mentor-protégé programs, such as the Department of Homeland Security’s program, which is designed to help small businesses obtain and . . . Read More
BLOG: Corporate Transactions and Affiliation Pitfalls
As a small business grows and expands, it may have opportunities to bring on new investors, provide equity incentives to obtain, incentivize and retain key employees and directors, and enter into acquisitions and other transactions with other entities. These investments and transactions can support the business’s stability and future growth but may also raise unintended affiliation issues. Because the Small Business Administration (SBA) includes the business’s affiliates when determining its size, pursuing these transactions may affiliate the business with other . . . Read More
BLOG: Halting Employee’s Right to Report Cybersecurity Noncompliance Can Land Government Contractors in Hot Water
Last week signaled a potential rude awakening for government contractors subject to cybersecurity requirements. A California U.S. district court ruled that allegations against Aerojet Rocketdyne could progress following a former employee’s complaint that the company terminated his employment after he disclosed cybersecurity failures to the company’s board of directors and refused to sign documents indicating that the company was compliant. Among the employee’s chief allegations is a charge that the company violated the False Claims Act by falsely representing its . . . Read More
BLOG: Challenging a Negative CPARS: What Remedies Are Available?
As any experienced government contractor knows, poor performance under a federal contract can have significant consequences. Not only can it lead to contract termination and damages, but it can also affect a contractor’s ability to obtain future work, as agencies are generally required to consider past performance information posted on the Contractor Performance Assessment Reporting System (“CPARS”) when making source selection decisions. Because a CPARS rating is generally valid for 3 years (6 years for construction/architect-engineer contracts), a contractor may . . . Read More
BLOG: In Win for Whistleblowers, Supreme Court Clarifies Statute of Limitations for False Claims Act Actions Where Government Elects Not to Intervene
Recently, in Cochise Consultancy, Inc. v. United States ex rel. Hunt, the Supreme Court resolved a circuit split and clarified in a unanimous decision that the statute of limitations period for qui tam actions where the Government declines to intervene could extend to ten years, if the plaintiff can show when the Government knew or should have known of the material facts related to the alleged false claim. The Supreme Court noted that under the False Claims Act, 31 U.S.C. § . . . Read More
BLOG: Justice Department Issues New False Claims Act Guidance on Cooperation Credit That May Reduce FCA-Defendant Liability
Last week, on May 7, 2019, the U.S. Department of Justice (“DOJ”) announced the issuance of formal guidance to clarify the manner in which the DOJ allocates credit to defendants who cooperate with government investigations in False Claims Act (“FCA”) matters. In a press release from the Office of Public Affairs, the DOJ explained that it “has taken important steps to incentivize companies to voluntarily disclose misconduct and cooperate with [DOJ] investigations[.]” Specifically with regard to the FCA, the DOJ . . . Read More
BLOG: SBA Proposes to Implement Certification Requirement for WOSB/EDWOSBs and Revise Economic Disadvantage Criteria for 8(a) Eligibility
A few years ago, we wrote about how through the 2015 NDAA, Congress directed SBA to end self-certification for WOSBs and EDWOSBs and implement a certification process. On May 14, 2019, SBA issued the proposed rule which, if finalized, would implement a certification requirement for WOSBs and EDWOSBs. In this proposed rule, SBA has also proposed revising the economic disadvantage criteria for 8(a) companies, particularly for initial eligibility purposes, and to make these consistent between the 8(a) and EDWOSB programs. WOSB/EDWOSB . . . Read More