The VA Issues Class Deviation: Important Changes Governing Limitations on Subcontracting Effective Immediately
On December 23, 2020, the Department of Veterans Affairs (VA) issued a class deviation to implement the Small Business Administration’s (SBA) formulation of the limitations on subcontracting (LOS) and nonmanufacturer rule (NMR) for all VA contracts awarded to small businesses or under SBA socioeconomic programs. SBA’s formulation is outlined in its May 31, 2016, final rule . The VA’s class deviation follows the release of a Civilian Agency Acquisition Council (CAAC) letter , which authorized civilian agencies to issue such class deviations to . . . Read More
2021 Labor and Employment Spotlight: A List of Key Legal Updates for Employers
Undeniably, 2020 was a year like no other. Faced with a global pandemic and a tumultuous election, employers were presented with a unique set of challenges and a myriad of new—and at times, very vague—laws and regulations. Despite the start of a new year and a new administration in just a week, much of 2020 still lingers on, including some of its novel policies. However, the new year and new administration also signal a shift in direction for labor and . . . Read More
SBA to Publish Interim Final Rule on Extension of 8(a) Participation
Both the Appropriations Act and the 2021 National Defense Authorization Act permit businesses who were participants in the 8(a) Business Development program on or before September 9, 2020, to extend their participation in the program for a period of one year. Accordingly, the U.S. Small Business Administration (SBA) is expected to publish a final rule incorporating this mandate tomorrow, January 13, 2021. Below are key takeaways for government contractors seeking to extend participation in the 8(a) program. Eligibility Requirements Through . . . Read More
SBA Provides Direction for PPP Round Deux Loans and Second Draw Loans
On January 6, 2021, the Small Business Administration (SBA) issued its first round of formal guidance for the new Paycheck Protection Program (PPP) and the second-draw PPP loans, which we first discussed here . SBA also gave some indication of plans for the second round of the PPP. SBA’s guidance can be found here for the next phase of PPP and here for the second-draw program. Below are key updates for businesses that need access to this important source of relief funding. As . . . Read More
Purchase Agreement Components, Part 2: Indemnification Provisions
In an acquisition, particularly an equity acquisition, a buyer must perform extensive due diligence on the target company to understand, as thoroughly as possible, the risks associated with the acquisition. In most cases, however, the buyer cannot fully evaluate or even identify all sources of risk that it will assume post-closing. To address these uncertainties and allocate these potential risks, the buyer and seller negotiate indemnification provisions that set forth the scope of each party’s obligation to reimburse the other . . . Read More
Third-Party Data-Rights Restrictions: Non-Conforming Legend? Not a Problem
In federal contracting, the laws and regulations surrounding data rights and intellectual property (IP) rights can instill fear in many companies, especially small businesses. A misstep could have you assigning unlimited rights or even ownership of your IP to the federal government. For a broader explanation of some of the challenges government contractors face, please check out our earlier blogs here and here . Generally, to ensure protection of its rights vis-à-vis the federal government, a contractor must include an applicable legend . . . Read More
To Offer or Not to Offer FFCRA Leave?
Earlier this month we reported that under the latest stimulus bill, the Families First Coronavirus Response Act (FFCRA) mandatory leave requirements expire on December 31, 2020. However, the bill, which was signed into law on December 27, does include the option for employers to voluntarily continue to provide employees with FFCRA leave – and in turn to receive a tax credit for such qualified leave – through March 31, 2021. Companies should note that while the deadline to take advantage . . . Read More
PPP Round Deux Update
On December 27, 2020, the President signed the Consolidated Appropriations Act of 2021, which includes the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the “Act”). The Act allows a “Second Draw” of Paycheck Protection Program (“PPP”) loans up to $2 million, expands the permissible uses for which such loans may be used, simplifies the loan forgiveness application for some borrowers, and makes other related changes to the PPP program. While 2021 may bring relief in the form . . . Read More
GAO Holds that SAM Registration Pertains to a Bidder’s Responsibility, Not Responsiveness of a Bid
On December 16, 2020, the Government Accountability Office (GAO) sustained a protest by a contractor that was eliminated from a competition because its System for Award Management (SAM) registration had expired. Holding that registration in SAM pertains to a bidder’s responsibility, not the responsiveness of the bid, the GAO directed the agency to afford the bidder an opportunity to cure the matter after bid opening and before the award rather than finding the bidder to be ineligible for award. This . . . Read More
PPP Round Deux: Who Qualifies, For How Much, and Forgiveness Changes
While the President vetoed the 2021 NDAA—and has put COVID relief into question—he has not yet acted on the Consolidated Appropriations Act, 2021, which contained the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the Act) dealing with the second round of PPP Loans. So, while the Act may be in jeopardy of a veto also, it has not yet occurred and, regardless, it is likely many of the PPP Loan provisions contained in the Act will be . . . Read More