Inflation Relief Is Coming for DOD Contractors
As PilieroMazza has reported , rising costs due to inflation have been one of the most significant issues facing contractors with fixed-price contracts for the past year. Although the Department of Defense (DOD) and General Services Administration (GSA) have taken some steps to ameliorate the situation, those solutions have left contractors wanting. But true relief may be in sight. Congress included a provision in the National Defense Authorization Act (NDAA) for Fiscal Year 2023 that would authorize DOD contractors to receive . . . Read More
Final Rule Establishes Requirements for New SBA Veteran Small Business Certification Program
The Small Business Administration (SBA) issued a final rule last week, officially transferring the responsibility for certification of veteran-owned small businesses (VOSB) and service-disabled veteran-owned small businesses (SDVOSB) to SBA, effective January 1, 2023. We previously blogged about this change here , indicating that Section 862 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2021 provided for the elimination of the Department of Veterans Affairs’ (VA) certification program altogether and implementation of a certification requirement for all VOSB / SDVOSB . . . Read More
2022 GAO Bid Protest Annual Report: Key Takeaways for Government Contractors
The Government Accountability Office (GAO) recently released its 2022 Bid Protest Annual Report (Report), which reviews statistics compiled from the cases brought before the agency, including protests, cost claims, and requests for reconsideration. In this blog, PilieroMazza analyzes what the Report reveals about bid protests at GAO, including recent trends and how the information could affect a contractor’s decision to file a protest and its likelihood of success. Analysis of the Report In fiscal year 2022, the number of cases filed with GAO was down 12% . . . Read More
SBA Adjusts Economic Disadvantage Thresholds for 8(a) and EDWOSB Programs and Monetary-Based Size Standards
Per an interim final rule published on November 17, 2022, the Small Business Administration (SBA) is adjusting the three economic disadvantage thresholds applicable to the 8(a) and Economically Disadvantaged Women-Owned Small Business (EDWOSB) programs for inflation. SBA’s interim final rule will also increase its receipts-based small business size standards. These changes will be effective on December 19, 2022. SBA’s changes should be welcomed by small businesses and participants in the 8(a) and EDWOSB programs and those looking to apply. Economic Disadvantage Thresholds for . . . Read More
Act Fast: ESOP-Owned Defense Contractors Eligible for Sole-Source Awards in New DOD Pilot Program
The Department of Defense (DOD) recently launched a pilot program allowing Contracting Officers (CO) to award sole-source follow-on contracts to contractors owned 100% by an employee stock ownership plan (ESOP). Although sole-source awards already exist for specific types of small businesses, this program marks the first time that the government authorized a set-aside program for ESOPs. Like most pilot programs, however, the ESOP set-aside program is limited, with strict eligibility criteria and only nine contracts available. Considering these limitations, ESOPs interested in participating in . . . Read More
Biden Proposes Emissions Reduction and Reporting Standards for Federal Contractors
The Biden-Harris Administration recently published a proposed rule on Federal Supplier Climate Risks and Resilience (Proposed Rule). The Proposed Rule intends to further the goals set forth in Biden’s Executive Order on Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability (E.O. 14057) and to reduce the financial risks faced by the federal government from climate change-related supply chain disruptions. The Proposed Rule would set standards on emissions reporting, climate-related financial risk disclosure, and emissions reduction targets for federal contractors and subcontractors. Primarily, the Proposed Rule would require major suppliers to establish Paris Agreement-aligned emissions reduction goals. The . . . Read More
U.S. Treasury Issues Guidance on CFIUS Enforcement and Penalties
On October 20, 2022, the U.S. Department of the Treasury (Treasury) released the Committee on Foreign Investment in the United States (CFIUS or the Committee) Enforcement and Penalty Guidelines (the Guidelines ). The Guidelines describe (1) three categories of conduct that may constitute as CFIUS violations, (2) the Committee’s process for imposing penalties, and (3) factors the Committee considers when determining whether a penalty is warranted and the scope of such penalty. Since this is the first time the Treasury released . . . Read More
Prohibition on Use or Delivery of Chinese Telecommunications and Video Surveillance Products and Services: The Potential Link Between Section 889 of the 2019 NDAA and Section 1260H of the 2021 NDAA
Over the past few days, PilieroMazza received a number of inquiries related to our recent posting entitled DOD Releases New List of Section 889 Banned Entities . In that post, we discussed how DOD recently released a new list of entities determined by DOD to be deemed “Chinese Military Companies.” This release was not made under Section 889 of the 2019 NDAA but instead under Section 1260H of the 2021 National Defense Authorization Act (NDAA). This caused confusion related to the potential intersection of the two laws and whether one . . . Read More
SBA Proposes Revisions to Ownership and Control Requirements for the 8(a) Business Development Program
As PilieroMazza noted recently here , the Small Business Administration (SBA) released a major proposed rulemaking that will impact government contractors, primarily those that are participants in the 8(a) Business Development Program. PilieroMazza has posted a series of blogs regarding SBA’s proposed rulemaking, and this client alert highlights some of the proposed changes that pertain specifically to the 8(a) Program. Ownership and Control As you may be aware, there are certain ownership restrictions on an 8(a) firm. One of the restrictions . . . Read More
Potential Changes on the Horizon for DOT’s Disadvantaged Business Enterprise Program
The Department of Transportation’s (DOT) Disadvantaged Business Enterprise (DBE) Program is in the midst of a major overhaul that would update, streamline, and clarify existing rules, strengthen implementation, and increase reporting requirements. The DOT’s DBE Program allows small businesses owned by socially and economically disadvantaged individuals to tap into billions of dollars’ worth of contracting opportunities issued at the state and local level through federally-funded infrastructure projects. On July 21, 2022, DOT issued a notice of proposed rulemaking (Rule) which presents the biggest potential . . . Read More