Subcontract Language Controls, Even When It May Not Be Fair
The language you choose to put in your subcontract matters, even if you do not understand it or applying that language might end in an unfair result. The Ninth Circuit Court of Appeals drove this point home recently in Aspic Engineering and Construction Company v. ECC Centcom Constructors, LLC. In Aspic, a contractor, ECC, was awarded two prime contracts by the U.S. Army Corps of Engineers for the construction of various buildings in Afghanistan. Aspic, an Afghani company alleged to be unfamiliar . . . Read More
Comments Submitted in Response to RIN 9000-AN35: Revision of Limitations on Subcontracting
On February 4, 2019, PilieroMazza submitted comments on RIN 3245-AG86, Proposed Rule National Defense Authorization Acts of 2016 and 2017, Recovery Improvements for Small Entities After Disaster Act of 2015, and Other Small Business Government Contracting. Includes our comments on: We Support the FAR Council’s Revisions to FAR 52.219-4, But This Clause Requires Further Modifications to Align with SBA’s Limitations on Subcontracting Rules for HUBZone Joint Ventures The FAR Council Should Propose Revisions to the HUBZone Price Evaluation Preference Clause . . . Read More
Comments Submitted in Response to RIN 3245-AG86—Proposed Rule on Small Business Government Contracting
On February 4, 2019, PilieroMazza submitted comments on RIN 3245-AG86, Proposed Rule National Defense Authorization Acts of 2016 and 2017, Recovery Improvements for Small Entities After Disaster Act of 2015, and Other Small Business Government Contracting. Includes our comments on: SBA’s Proposed Changes About Subcontracting Plans Provide Necessary Clarification SBA’s Contracting Preferences for Small Businesses in Disaster Areas Are Welcome SBA’s Clarification Regarding the Nonmanufacturer Rule and Information Technology Value Added Resellers Is Beneficial Setting Aside an Order Under a Multiple-Award . . . Read More
In the Weeds: Testing Federal Contractor Employees for Marijuana Use
Consider the following scenario: Janie is employed as a help desk clerk to perform work on a federal government contract and is a model employee. She has a perfect attendance record, performs her job responsibilities with enthusiasm, and is always a team player. Pursuant to company policy, one day Janie is subjected to a random drug test. The results show she tested positive for THC, consistent with the use of marijuana. What options does her employer have? As a government . . . Read More
The Contracting Officer Denied My Claim: Is It Time to Appeal?
The Contract Disputes Act (“CDA”) was intended to provide a straightforward process for contractors to resolve disputes that occur under a government contract. In short, a contractor may initiate a dispute by submitting a claim to the contracting officer. The contracting officer then issues a final decision, and if the contractor disagrees, it may appeal to a board of contract appeals within 90 days or to the U.S. Court of Federal Claims (“COFC”) within one year. Although this path seems . . . Read More
Not So Fast: Practical Considerations Before Novating Your GSA Schedule Contract
The acquisition market for federal contractors is booming. Acquisition can provide a buyer the opportunity to target its growth strategically by acquiring the seller’s past performance and experience, in addition to gaining the seller’s personnel and resources. Of course, part of what makes a seller attractive is the contracts found in its portfolio. While the government does not officially condone the “buying and selling” of federal contracts, a contract may be novated after an acquisition if the buyer has acquired . . . Read More
Comments Submitted in Response to RIN 2900-AQ24—VA Acquisition Regulation
On January 24, 2019, PilieroMazza submitted comments to the U.S. Department of Veterans Affairs in response to the proposed rule issued on November 29, 2018, RIN 2900-AQ24—VA Acquisition Regulation: Environment, Energy and Water Efficiency, Renewable Energy Technologies, Occupational Safety, and Drug-Free Workplace; Protection of Privacy and Freedom of Information; Other Socioeconomic Programs; and Contract Modifications. Includes our comments on: VAAR Part 826 Will Be Beneficial, But It Needs Further Clarification The VAAR Must Fully Implement the Vets Act Priority for . . . Read More
Facing Costly Litigation? An Offer of Judgment May Save You Money in the Long Run
“[I]n this world, nothing can be said to be certain, except death and taxes.” This oft-cited quote attributed to Benjamin Franklin may be timeless, but it fails to tell the whole story in the modern world—at least for businesses facing unwelcome litigation. As companies conduct more and more of their business digitally, the cost of defending a lawsuit is increasing, due in large part to the impact of electronic discovery obligations. Electronic discovery, or e-discovery, generally involves the identification, collection, . . . Read More
Using a Joint Venture for Supply Procurements
Joint ventures have been popular arrangements for chasing government contracts, particularly since the start of SBA’s All Small Mentor-Protégé program in 2016. The “ASMPP” allows any small business to enter into an SBA-approved mentor-protégé relationship with a large business. Once a mentor-protégé relationship is approved, the small business and large business can form a joint venture to pursue small business set-asides. This marriage of a small and large business to pursue small business contracts can provide a real competitive edge . . . Read More
A Five-Year Measuring Period for Economic Dependence Affiliation
Earlier this month, we wrote about the internal SBA Information Notice (Information Notice), which clarifies that the changes made by the Small Business Runway Extension Act (Runway Extension Act) are not effective immediately. The Runway Extension Act requires that receipts-based size standards be based on annual average gross receipts over five years. SBA’s regulations currently require a three-year lookback for size standards based on annual receipts. And, according to the Information Notice, until SBA revises its regulations through the rulemaking process, businesses must continue . . . Read More