House Bill Proposes Improvements to Small Business Contracting Policies
By Megan Connor The House Small Business Committee approved legislation on March 25, 2015 to ensure more small businesses can compete for federal contracts and help save taxpayer money. H.R. 1481, The Small Contractors Improve Competition Act of 2015 , proposes a series of common sense improvements to small business contracting policies to promote increased competition, a healthier industrial base, and a more cost-effective federal procurement process. The bill is the result of a series of hearings examining small business contracting policies, including a full committee hearing in February and . . . Read More
GSA Proposes to Amend GSAR for Reporting of Transactional Data and Prices Paid by Ordering Activities
By Katie Flood On March 4, 2015, the General Services Administration (GSA) issued a Proposed Rule to amend the GSA’s Acquisition Regulations. The rule outlines a plan to adopt clauses requiring vendors to report transactional data from orders and prices paid by ordering activities. This includes orders placed against FSS contracts & non-FSS contract vehicles, GWACs, and IDIQ contracts. The Proposed Rule signals a shift away from GSA’s current price enforcement mechanism, the Price Reductions Clause, in favor of a . . . Read More
Your “Form” Teaming Agreement: Enforceable Contract or an “Agreement to Agree”?
Teaming agreements have become virtually universal in the world of government contracting, and their use is recognized and promoted in the Federal Acquisition Regulation. Given the prevalence of teaming agreements, it is our experience that many government contractors have developed a “form” teaming agreement, as they have with other often-used documents, such as form subcontracts. Typical provisions included in a teaming agreement often include: Allocations of a specific percentage of the work share to each team member; A pledge of . . . Read More
Seminar with SBA Speaker on Recent Proposed Rules
SBA recently released two long-awaited and significant new proposed rules—one on changes to the Mentor-Protégé program and the other on the Limitations on Subcontracting. The Mentor-Protégé proposed rule will establish a new mentor-protégé program available to all small businesses, while the other will change the way small businesses determine compliance with the limitations on subcontracting. Both proposed rules include a number of other potential changes to SBA’s small business programs, including the rules pertaining to joint ventures, affiliation, applications for . . . Read More
GAO Allows New Company to Rely Upon Owner’s Personal Past Performance
Newly-organized small businesses often struggle to establish adequate past performance to successfully compete in the federal marketplace. Fortunately, in the matter of Recogniti, LLP, B-410658 (January 21, 2015), GAO ruled that an agency could rely on the past performance of an offeror’s owner, rather than solely on the company’s past performance. In the Recogniti case, the awardee submitted its winning proposal after being in business for only eight months. As part of that proposal, under the past performance section, the . . . Read More
Similar But Different: FAA Size Protest Challenges
Most small business contractors are familiar with the notion that the U.S. Small Business Administration (“SBA”) has exclusive jurisdiction over all size protests. In fact, in the realm of government contracting, there is really no question as to which federal agency “wears the pants” when it comes to handling small business size issues. Still, is the SBA really the only federal agency capable of making a formal size determination regarding a business concern? Officials at the Federal Aviation Administration (“FAA”) . . . Read More
Protecting an LLC From A Wayward Member While Maintaining SBA Eligibility
By Ambi Biggs When creating a limited liability company (“LLC”), members are often so concerned with getting the company established–and anticipating problems that may arise with third parties, be it suppliers or customers–that they fail to consider what will happen if issues arise among the members themselves. This is a mistake. Usurpation of corporate opportunities, the misuse of company assets and a breach of fiduciary duties are just some of the most common issues that can arise among LLC . . . Read More
STOP, THIEF! – How to Keep Your “Secret Sauce” In-House, When an Employee Is Lured to Greener Pastures
No matter how collegial and successful a workplace you have created for your employees, attrition is an inevitable fact of life in business, and in government contracting in particular. And when departing personnel have been privy to hard-won confidential and proprietary company data, the thought of that information falling into the hands of a competitor have caused many a sleepless night for business owners. This article is intended to outline some steps that the prudent executive should take to preserve . . . Read More
New Washington, DC Wage Law with Sweeping Changes In Effect This Week
On February 26, 2015, the Amended DC Wage Theft Prevention Act (the “Act”) goes into effect and imposes several new obligations on Washington, DC employers. The Act makes sweeping changes to notice and recordkeeping requirements and imposes heavy penalties on employers that violate the Act. The following describes several obligations of which DC employers should be aware: Pay Notice Requirements Within 90 days of the Act’s effective date, or May 27, 2015, DC employers must furnish a wage notice to . . . Read More
SBIC Investment: A Potential Source of Capital for Government Contractors
By Linh Phu, Access National Bank Owners of privately-held businesses generally finance their businesses with their own capital, augmented with bank loans. An additional source of funding for government contractors is available from Small Business Investment Companies (SBICs). The Small Business Investment Company Program was established by Congress in 1958 to supplement the long term capital, both debt and equity, available to small businesses. The SBICs are privately owned and managed investment funds, but regulated and licensed by the U.S. . . . Read More