BLOG: SBA to Increase Enforcement in 2020 on Set-Asides and Subcontracting
One of the most overlooked compliance requirements for set-aside contracts are the limitations on subcontracting. Don’t take my word for it—GAO has noted in several reports that contracting officers generally do not monitor or enforce the requirement that the small business prime contractor must self-perform a certain percentage of the contract. The limitations on subcontracting requirements are critical to the efficacy of the small business programs. Indeed, the goals of the programs are not served if small businesses do not . . . Read More
BLOG: Trouble with Tariffs? You May Have the Basis for an REA or a Claim
In recent years, tariffs have been imposed on an array of goods, ranging from electronics to solar panels to industrial equipment. For companies bidding on contracts now, the tariffs may not be a concern, as the tariffs can be factored into the pricing proposal. However, for government contractors performing contracts that were awarded before the tariffs were imposed, the tariffs may result in increased and unanticipated costs. Those increased costs may provide the basis for a request for equitable adjustment . . . Read More
BLOG: SBA Publishes Important Proposed Rule Changes to 8(a) and Mentor-Protégé Programs
Today, SBA published a proposed rule to merge its mentor-protégé programs and amend many of its rules governing the 8(a) program and small businesses. The proposed rule would have significant implications for the government contracting community. Comments are due by January 17, 2020, and PilieroMazza will host a seminar on November 18, 2019, from 7:30 AM – 10:30 AM EST at The Ritz-Carlton, Tysons Corner. Our seminar will feature Pamela Mazza , Managing Partner of PilieroMazza , and John Klein , Associate General Counsel for Procurement Law at the Small Business Administration (SBA) and . . . Read More
BLOG: Small Talk: SBA Size Calculation for Government Contractors
With changes to size standards this year based on inflation estimated to enable 89,730 firms to gain small business status, annual size recertification requirements , and potentially severe penalties for misrepresentation of size, it is essential that government contractors calculate their size correctly and keep their System for Award Management profile up to date. This is often daunting, as size standards differ by industry and, depending on your industry and the procurement you are pursuing, you may have to calculate your size with . . . Read More
BLOG: A Thank You to the Small Business Administration: SBA Takes a Stand on OIG’s Approach to Suspension and Debarment
The ability to suspend and debar contractors is a tool the federal government can deploy when necessary to protect it from unscrupulous contractors. Critically, it is not intended to be used punitively. The reason for this is clear, especially when dealing with small businesses: if you debar or suspend a company without evidence that it is not a responsible contractor, you risk destroying part of the United States’ industrial base and numerous jobs that Americans rely on without good cause. Too often . . . Read More
BLOG: Small Businesses and the FCA: Are More FCA Cases Against Small Businesses on the Horizon?
On August 20, 2019, the U.S. Department of Justice announced that it had reached a $20 million settlement with Luke Hillier (Hillier), the majority owner and former CEO of a Virginia-based defense contractor, ADS, Inc. (ADS), to resolve “allegations that he violated the False Claims Act (FCA) by fraudulently obtaining federal set-aside contracts reserved for small businesses that his company was ineligible to receive . . . .” The resolution of the claims against Hillier follows ADS’s payment of a . . . Read More
BLOG: Protégé Subcontract Revenues from Mentor Hold No Basis for Economic Dependence
An important benefit of a mentor-protégé agreement (MPA) is that no determination of affiliation may be found between a protégé and its mentor solely because of assistance provided under the agreement. A recent decision of the Small Business Administration (SBA) Office of Hearings and Appeals (OHA), Avar Consulting, Inc., [1] upheld a size determination which found that a protégé was not affiliated with its SBA-approved mentor through economic dependence, even though the revenues it received from the mentor constituted over 70% of . . . Read More
BLOG: Late Is Late—Even on the GSA Schedule
In a recent blog , we discussed the “late is late” rule in government contracting which has been the cause of many protests and much consternation among government contractors. However, the Government Accountability Office (GAO) and the Court of Federal Claims (COFC) have consistently held that it is proper for an agency to reject a late offer, even if the offer is only slightly late. Recently, COFC applied this rule to a General Services Administration (GSA) Schedule purchase—specifically in Criterion Systems, . . . Read More
BLOG: GAO Defers to SBA on When Runway Extension Act Applies
Last year, Congress passed—and President Trump signed—the Small Business Runway Extension Act (the “Runway Extension Act” or the “Act”), which changed the time period for determining a company’s size based on average annual receipts from the previous three years to the previous five years. This summer, the Small Business Administration (“SBA”) finally published its proposed rule to amend its regulations and change the period of measurement for receipts-based size calculations from three years to five years. As my colleague Megan Connor noted . . . Read More
BLOG: Better Late Than Never, But Never Late Is Better: Understanding FAR’s Government Control Exceptions to Late Proposals
PilieroMazza attorneys have seen a number of government contractor clients encounter the same problem: They timely emailed a proposal to a government agency, but, for reasons unknown, the proposal was delivered late or was never received by the Contracting Officer (“CO”). There, the CO normally enforces the Federal Acquisition Regulation’s (“FAR”) strict “Late is Late” policy and rejects the proposal. Fortunately, in certain circumstances, it is possible to employ the Government Control Exception to salvage allegedly late proposals; however, the Government Accountability . . . Read More