Are Agencies Ignoring SBA’s Application of the Nonmanufacturer Rule to Resellers of Major Commercial Software?

Early last year, on January 26, 2016, SBA issued a new requirement that IT Value Added Resellers (“ITVAR”) under the footnote/exception to NAICS Code 541519 have to comply with the nonmanufacturer rule when reselling software under that code.  Thus, according to the rule, any ITVAR must provide software that is manufactured (i.e., developed) by a small business unless a waiver of the nonmanufacturer rule is requested by the contracting officer and granted by SBA for each and every ITVAR procurement. . . . Read More

The Weekly Update March 3, 2017

GOVERNMENT CONTRACTS Presidential Executive Order on Enforcing the Regulatory Reform Agenda This Executive Order instructs the head of each agency to designate an agency official as its Regulatory Reform Officer (“RRO”) within 60 days. Each agency RRO will oversee the implementation of regulatory reform initiatives and policies to ensure that agencies effectively carry out regulatory reforms including (1) offsetting the number and cost of new regulations; (2) regulatory planning and review; and (3) the termination of programs and activities that . . . Read More

SBA Size Standards Under the Microscope

?SBA’s size standards are one of the agency’s most important metrics. The size standards draw a bright line between small and large businesses for each industry by NAICS code. A firm that is below the size standard for its industry is eligible to pursue federal contracts and programs reserved for small businesses. And small businesses are also exempt from other rules that would otherwise apply to federal contractors. So how and where SBA draws the size line for each industry . . . Read More

Transactional Data Reporting: Brave New World

By Katie Flood As part of its Category Management initiative, the U.S. General Services Administration (“GSA”) has piloted the Transactional Data Reporting rule (“TDR”), which is meant to provide a greater degree of transparency into the federal and commercial marketplace practices of GSA Schedule contractors.  The TDR is meant to remove burdensome tracking and reporting supplier requirements from the Price Reductions Clause (“PRC”) and Commercial Sales Practices (“CSP”), as contractors will now be required to report data on a transactional . . . Read More

The Weekly Update February 24, 2017

GOVERNMENT CONTRACTS Procedural Rules and Regulations The National Labor Relations Board (“NLRB”) amended its procedural rules and regulations to (1) reflect modern technology, such as E-Filing, and eliminate references to telegraphs, carbon copies, and the requirements for hard copy submissions and multiple copies; (2) use more plain language and eliminate legalistic terms such as “therefrom,” “thereupon,” “therein,” “herein,” and “said;” (3) reorganize the rules and add headings so that the subject matter is easier to find; (4) incorporate current practices . . . Read More

2016 GAO Bid Protest Annual Report: Sustain Rate Hits Nine Year High, Up More Than 10 percent from 2015

By Megan Connor This article originally appeared in the First Quarter Legal Advisor. GAO recently released its annual report to Congress, which included data concerning its protest filings for the fiscal year 2016. Based on the data, 2016 was a historic year. GAO not only decided more cases on the merits in 2016 than in any prior year, dating back to 2001, but it also sustained more cases in 2016 than in any year during that same period. It is . . . Read More

Small Business Valuation — What Is It And Why Does It Matter?

By Michael A. de Gennaro Government contractors who have built successful businesses over a period of time often neglect to answer one simple question until very late in the game. The question, “What is my business worth?” has far-reaching implications and comes up in a number of scenarios, such as the sale of the contractor’s business, the creation of long-term incentive plans for employees, estate/business succession planning, and death/divorce of an owner. At least monthly, we receive a call from . . . Read More