Reporting Executive Compensation: What If You Don’t Report?
Government contractors are accustomed a myriad of reporting requirements. One such requirement that has caused much consternation is the FAR’s executive compensation clause which, as of October 1, 2015, applies to all contracts exceeding $30,000, as opposed to the pre-inflationary adjustments threshold of $25,000. The clause requires contractors to report their five most highly-paid executives and list their total compensation for the preceding fiscal year. Most contractors are–not surprisingly, given the nature of the information–very reluctant to disclose such information . . . Read More
SBA Gradually Approves of Hiring Key Personnel from an Alleged Ostensible Subcontractor
By Julia Di Vito The Small Business Administration (“SBA”) is undergoing a gradual shift in its views on small business prime contractors proposing to hire “key personnel” from their subcontractors in the context of the ostensible subcontractor rule. As most small business subcontractors who have been involved in a size protest know, the ostensible subcontractor rule provides that when a prime contractor is unusually reliant on the subcontractor, SBA will deem the prime contractor affiliated with its subcontractor in performing . . . Read More
SBA Approval of 8(a) Joint Ventures – What Is Required Beyond the Regulations?
By Kimi Murakami Over the past several months, our firm has been approached by Section 8(a) companies throughout the country who have been advised by their SBA district offices that their 8(a) joint ventures would not be approved by the SBA. This disappointing news came in spite of the fact that the 8(a) company felt it had met the requirements for 8(a) joint ventures in the SBA rules (see 13 C.F.R. § 124.513). Based on the varied reasons for these . . . Read More
Counterfeit Parts Rule: Do You Know Where Your Parts Came From?
By Michelle Litteken You may have heard about DFARS 252.246-7007, Contractor Counterfeit Electronic Part Detection and Avoidance System, also known as the “Counterfeit Parts Rule.” The rule requires contractors who provide electronic parts to the Department of Defense (“DOD”) to establish a counterfeit electronic part detection and avoidance system. When the Counterfeit Parts Rule was issued in May 2014, it drew a great deal of criticism from contractors because of the obligations and risks that it imposed. Up until now, . . . Read More
UPDATED: Dissatisfied with an Unsatisfactory Rating? Contractor Options for Challenging CPARS
By Megan Connor In March 2014, we published a blog about challenging an unfavorable interim or final Contractor Performance Assessment Report System (“CPARS”) rating. Because of changes in the regulations, we wanted to update that post for contractors interested in challenging their CPARS. The FAR provides that contractors must be given a minimum of 14 calendar days to submit comments, rebutting statements, or additional information upon receipt of a CPARS. If you disagree with anything in a CPARS, you should . . . Read More
DC Proposes New Law Requiring 16 Weeks of Paid Family and Medical Leave
By Corey Argust On October 6, the Council of the District of Columbia introduced the Universal Paid Leave Act of 2015. As written, the proposed bill would provide District employees with the ability to take up to 16 weeks of paid family and medical leave within a 12-month period. If adopted, the new law would provide employees working in the District with the most generous paid family leave in the United States, surpassing the current maximum of six weeks of . . . Read More
SBA Proposes Simplified Affiliation Tests for Business Loan Programs
Keep it simple, says SBA, in a recent proposed rule that would redefine the rules of affiliation for firms applying to SBA’s business loan programs, including the 7(a) Loan Program and 504 Loan Program (collectively, the “Business Loan Programs”). Per the proposed rule, changing conditions in the economy and a constantly-evolving small business community have spurred SBA to seek ways to improve the efficiency of its Business Loan Programs. To that end, SBA is proposing to simplify guidelines for determining . . . Read More
Negotiating the Renewal Option of Your Office Lease
In negotiating an office lease, business owners should be sure to negotiate a potentially-valuable, tenant-friendly option that landlords often grant: one or more renewal options of the lease. Under a renewal option of a lease, a tenant has the option to renew the lease for a new term, immediately subsequent to the end of the existing term. And having this option can result in a potentially-significant dividend for the business, particularly if there is a ceiling on the potential rent . . . Read More
Proposed Changes to Federal Rules of Civil Procedure for ESI
By Ambi Biggs With the widespread use of electronic communication methods, discovery is often the most onerous, time-consuming and costly aspects of litigation. Case law has established that a party has a duty to preserve information when litigation is reasonably anticipated, so litigants’ discovery duties begin before the complaint has even been filed in court. Failure to preserve information, including electronically stored information (“ESI”), can lead to sanctions ranging from instructing a jury that it may draw an adverse inference . . . Read More
Making the Most of Your Minority-Owned Business Status
Congratulations! You’re already successfully operating your business as a small disadvantaged business in accordance with the Small Business Administration’s (SBA) regulations, perhaps as a part of SBA’s 8(a) Business Development Program, enabling you to compete for certain federal contracting opportunities. But are you taking advantage of all the opportunities available to you Many state and local agencies, as well as a multitude of private companies, also have goals or requirements to set-aside contracts for businesses that are owned and controlled . . . Read More