No-Poaching Agreements: You Could Be Criminally Liable
Earlier this year, the Department of Justice’s Antitrust Division (DOJ) issued the Antitrust Guidance for Human Resource Professionals (DOJ Guidelines), which signaled for the first time that DOJ would “proceed criminally against naked wage-fixing or no-poaching agreements.” “No-poaching” or wage fixing agreements are a defense against employees leaving their companies to work for competitors in tight markets. However, companies that are not careful and enter into these agreements could face substantial liability, even criminal liability. By way of example, in . . . Read More
GAO Denies Protest Based on Cybersecurity Compliance
Last month, I blogged about DoD’s draft guidance on how it will evaluate cybersecurity compliance in the award of contracts. The blog is available here . Based on this draft guidance indicating DoD may use cybersecurity compliance as pass/fail or best value criteria in evaluations, I concluded that bid protests would not be too far behind once DoD finalizes and implements the guidance. The public comment period on DoD’s draft guidance recently closed, so we may still be a little way . . . Read More
False Claims Act Cases Involving Set-Aside Contracts Held to More Stringent Requirements Following Escobar
Two years have passed since the U.S. Supreme Court issued Universal Health Services, Inc. v. United States ex rel. Escobar, a key False Claims Act (“FCA”) case that resolved a circuit court split regarding the scope and validity of the implied false certification theory and established that the materiality standard for FCA cases is “demanding.” Since that time, lower courts have been implementing those standards to varying effects. The trend has been favorable for companies facing FCA cases that allege . . . Read More
The FLSA Is 80 Years Old—Has It Made Us Wiser?
This week marks the Fair Labor Standards Act’s (“FLSA”) 80th birthday. Because I have a particular affection for birthdays, this occasion is a good time to send the FLSA some overdue love and reflect on how it continues to challenge us today. The FLSA was passed in 1938 in the midst of the industrial revolution and on the heels of the Great Depression, which perpetuated a culture of workforce abuse and child labor. The FLSA’s most basic premise is that . . . Read More
Don’t Get Disqualified Because of Organizational Conflicts of Interest
A recent decision from the Government Accountability Office (“GAO”) reiterates two important principles concerning organizational conflicts of interest (“OCIs”). First, proactive measures may allow a contractor to effectively mitigate and avoid an OCI. Second, appearances, innuendo, and suspicion are insufficient to establish that a contractor has an OCI. Hard facts are required. In Archimedes Global, Inc. , B-415886.2 (June 1, 2018), the protester challenged the agency’s decision to exclude it from a competition because of an alleged OCI. By way of background, the . . . Read More
Doing Business Internationally? Litigation Just Became More Difficult!
Over the last twenty years, the expanding world market has made it easier for domestic companies to conduct business overseas and with foreign corporations. Large and small businesses alike are going global, receiving and providing products, services, and intellectual property internationally. But, along with new international opportunities comes an increase in the complexity of business-to-business transactions. And, when business deals between domestic and foreign businesses go south, the legal implications become more difficult to navigate. Each nation and each state . . . Read More
PilieroMazza’s Commitment to Advocating for All Small Businesses and Our Clients
A recent blog has come to our attention that discusses a nearly year old case involving an Alaska Native Corporation (ANC) entity. In that case, we appealed a size determination and argued that an ANC entity was too reliant on the experience of its two subcontractors, one of which was its sister company. This situation indicated that the prime contractor may have violated the ostensible subcontractor rule by its undue reliance on its subcontractors to qualify for the contract at . . . Read More
Pursuing a CTA Team Solution? Make Sure You’re on an Eligible Team!
Contractor Team Arrangements (CTA) formed to pursue GSA Schedule task order opportunities are unique animals in the government contracting universe. A mashup of elements taken from joint ventures and more traditional prime-sub relationships, CTAs allow two or more Schedule contract holders to combine their respective Schedule contract offerings in response to an ordering agency’s solicitation. GSA guidance is clear that for Schedule obligations—such as reporting sales and paying the Industrial Funding Fee (IFF)—each CTA Team Member is considered to be . . . Read More
SAM Registration Update: Notarized Letter Requirement Change and New Deadline Looming
As most government contractors may know by now, in order to proactively fight against alleged fraudulent activity in the System for Award Management (SAM), the General Services Administration (GSA) issued a rule that required all entities to “provide an original, signed notarized letter stating that you are the authorized Entity Administrator before your registration will be activated.” On June 11, 2018, GSA issued an update to the notarized letter requirement in two parts. The first, which went into effect on . . . Read More
SBA Eliminates “Direct” Ownership Rules for HUBZone Program
On March 26, 2018, the U.S. Small Business Administration (SBA) issued a direct final rule that changed the wording of 13 C.F.R. § 126.200(b)(1) to allow indirect ownership by U.S. citizens of companies in the HUBZone program. The stated purpose of the rule change is to align more accurately the rule with the underlying statutory authority. Prior to this change the HUBZone rules required that a HUBZone company be “unconditionally and directly owned” by U.S. citizens. The rule took effect . . . Read More